The growth rate of GDP

      While over the long run, the economy grows about 2 to 3% per year on average, over the shorter term, the economy goes through business cycles. Think about the growth rate of GDP, the inflation rate, and the unemployment rate over the last 12...

Arbitrage.

          Economic data and analyses have failed to explain international asset arbitrage behaviour or condition with economic variables such changes (shocks) in exchange rates, inflation, interest rates and output. Some analysts have turned...

Expansionary fiscal or monetary policy

          If the economy is at the natural rate of unemployment with the level of real GDP at potential output, what would expansionary fiscal or monetary policy do to the economy? How would the economy be effected in the short run and long...

Portfolio capital and foreign direct investment.

          List three benefits of portfolio capital and three benefits of foreign direct investment. Give one negative aspect of each. Explain why it is undesirable to rely on portfolio capital only. Explain why it is undesirable to rely on FDI...