International economics Theory and Policy

... accepts that international trade is not the source of the problem but suggests nonetheless that trade policy can provide at least a partial solution 22 5 22 6 PART International Trade Policy Igure ... p 20 0 specific tariff, p 186 terms of trade gain, p 196 voluntary export restraint (VER), p 20 2 Problems Home's demand curve for wheat is D = 100 - 20 P Its supply curve is = 20 + 20 P Derive and ... through Q2 lies inside the constraint passing through QK (b) Consumers not choose the welfare-maximizing point on the budget constraint; they 21 1 21 2 PART International Trade Policy Figure 8AI -2 IA...

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... 18 9 18 9 18 9 19 0 19 1 19 3 19 3 19 4 19 5 19 5 19 7 19 9 19 9 2 01 2 01 203 205 206 207 10 The Demand for Fiat Money 10 .1 Introduction 10 .2 A Simple OLG Model 10 .2 .1 ... 12 7 12 7 12 8 13 0 13 3 13 3 13 6 13 8 14 0 14 2 14 2 14 4 14 6 14 6 Labor Market Flows and Unemployment 7 .1 Introduction 7.2 Transitions Into and Out of Employment 7.2 .1 A Model ... 14 7 14 7 14 7 14 9 15 3 15 5 15 8 15 9 16 0 16 0 16 1 II Macroeconomic Theory: Money Money, Interest, and Prices 8 .1 Introduction ...

... Schumpeter (19 42) , Kydland and Prescott (19 82) , and Long and Plosser (1983) 36 CHAPTER BASIC NEOCLASSICAL THEORY FIGURE 2. 7 Business Cycles: Productivity Shocks y*H y*L 1.0 n*L n*H • Exercise 2. 5 Using ... subject of money is taken up in later chapters 2. 2 THE BASIC MODEL 27 FIGURE 2. 2 Household Choice Budget Line c = w - wl w C c A D B -w 1.0 lD n S Figure 2. 2 contains several pieces of information ... NEOCLASSICAL THEORY n∗ (zH ) These two possible outcomes are displayed in Figure 2. 12 as points A and B FIGURE 2. 12 Multiple Equilibria zH y*H A zL y*L B 1.0 n*L nC n*H Notice that both points A and B...