Category: Macroeconomics

Macroeconomics Introduction The General theory of microeconomics originally developed by Keynes in 1936 epitomizes the essence of monetary value in an economy. The theory postulates the relationship between employment and the purchasing power of a populace in relation to their contribution to the development of […]

For the International Monetary Fund, globalization also means that information and knowledge get dispersed and shared. However, it is important to stress that developments in the globalization process have made the dispersal and sharing of information at a very fast speed. This implies that speculation, […]

It is majorly a state dictated economy and it maintains a pegged exchange rate against a basket of currencies.It is surprising to note that 9% of the entire world’s crude oil reserves lie within the relatively smaller geographical boundaries of this nation. Thus, understandably, 50% […]

Intermediate macroeconomics Business cycle refers to the fluctuations in the economic activities taking place in the economy over a period of time. Business cycle undergoes four basic stages namely recession, trough, recovery and peak or boom. Recession refers to periods of contracting economic activities characterized […]

Hayek The reconstruction of society based on rational lines is the of critical discussion today. While it has been long believed that rationality and order are the best ways to shape the society, the issue of socialism has been underresearched. Especially, its economic aspect needs […]

Writing Assignment Lecturer: Economic growth entails an increase/expansion in capa of a country to produce goods and services. It may be determine by making a comparison between the Gross National product for the current year with that of the previous year. On the other hand, […]

roductivity, expenditure, or income (gross domestic product of a nation) (Ouanes, Abdessatar, Subhash, Thakur, Lienert, Marciniak and Swiderski, 1997, p.87).Consumption is a primary concept in economics, and many other social sciences also study it. Economists are very much interested in the relationship that exists between […]

There are several reasons why I have chosen to obtain an MBA from George Fox University. My interest in obtaining an MBAI am interested in obtaining an MBA as a way a channel for augmenting my knowledge of the business world. Given my undergraduate training […]

HERE YOUR HERE HERE HERE Micro and Macro Economics Economics is studying the of the world and why it operatesin the fashion that it does. It is a study of how firms make decisions about their work, consumer-related consumption patterns, how investment occurs, and about […]

The econometric discretion policy evaluate on fiscal and monetary policy by using the new rational expectation method of macroeconomics. This has been the substantial subject cause for increased recent year’s research. A number of factors have provided a motivation for the research.The critique of Lucas […]

In light of the mechanisms at the disposal of authorities across the Eurozone in dealing with the crisis, three recurrent economic tools come into focus than ever before.These economic tools for consideration are the exchange rates, trade balance and interest rates that determine governments’ decisions […]

Net exports of goods and services – 550 Net interest paid by business 440Government purchases of goods and services 1,650Gross private domestic investment 2,200Indirect business taxes 440Rental income of individuals plus implicit rent on owner-occupied housing 220Wages, salaries, employee compensation 6,600Personal consumption expenses 7,700Depreciation 880Proprietorial […]

a)This investment tax credit will lead to a surge in the investment demand, because of thebenefits that the firms receive from the investment tax credit. More and more firms willundertake…Macroeconomics

Question 2.Australia is a small open economy with a flexible (floating) exchange rate system. Use theMundell-Fleming model (i.e. the open-economy IS-LM-IP model) to analyse what willhappen to income, the exchange rate, and the trade balance (net exports) in response to thefollowing shocks. Carefully explain the […]

Question 3. (16 points) Assume the following model of the economy, with the price level fixed at 1:C= 0.8(Y -T)T= 1,000I= 800 -20rG= 1,000Y=C+1+GMS/P = M/P= 0.4Y -40rM = 1,200a.(3 points) Write a numerical formula for the IS curve, showing Y as a function of […]

a) Consider the following Question I. The following question is about the long-run economic growth. a) b) Consider the following equation of the neoclassical (Solow—Swan) growth model:NC = sf (k) — (6 + n)k . Explain in words what you understand by this equation and […]

• Illustrate each of the following situations with a graph showing short-run aggregatesupply:• A decrease in the size of the labor force. the aggregate supply will decresas• An increase in…Economics

olgtltligtWhat is marginal-cost pricing? Why would we expect perfectly-competitive firms to employ6 ) Adds profits? gt; customers who are extremlysensitive to prices this group might nototherwise buy from a company unless itwere willing to engage in marginalcost pricing.quot;) Accessory…Macroeconomics

Question 1Explain what economists mean by ‘full employment’. [3 marks]Answer: Full employment is whereby all people who are willing and able to work inthe prevailing wage rates have employment…Macroeconomics

Kindly go through the followingThe Principles of Macroeconomics examination covers material that is usually taught in a onesemester undergraduate course in this subject. This aspect of economics…Economics

olgtltligtContrast Say’s Law with Keynes’ Law. Do they provide completely different interpretations of Question olliContrast Say’s Law with Keynes’ Law. Do they provide completely different interpretations of macroeconomic behavior? Provide examples and explain your answer./li/ol Macroeconomics

Question Below is a list of policy proposals that have been advanced to help the economies of developing nations (not just the country of your choice in part one.) Briefly explain whether each proposal is consistent with the Solow model, modern growth theory, neither, or […]

Question Explanation of the short-run effect, determinants of AD/AS that caused the shift, the line that shifts , AD or AS, direction of the shift, impact on output and price level, and a graph to the statement below : Foreign buyer rush to purchase american […]

Question Personal consumption expenditure 1,500 Gross private domestic investment 355 Government expenditure on goods and services 590 Exports of goods and services 70 Imports of goods and services 50 Depreciation 200 Indirect business taxes 75 Based on the data in the above table, gross domestic […]

1. DefinationsFiscal policyFiscal policy is the government’s actions of influencing the economy through taxation andspending. It occurs when policymakers believe the economy is getting out of…Macroeconomics

Question Darryl is monetarist who judges that monetary policy is more effective than fiscal policy, since he believes that households respond to changes in __________. Group of answer choices real output the expenditure multiplier both money supply and real income both velocity and real output […]

Question Consider an economy in the long run that adopts an ‘eat, drink and be merry’ philosophy leading to an outburst of consumption expenditures (on food, booze and merriment). What happens to the market for loanable funds? Macroeconomics

Question Foundations of Macroeconomics Aggregate Demand and Aggregate Supply In the economy, when interest rates are increasing _______. A. decreases the opportunity cost of future consumption, but has no effect on the opportunity cost of present consumption. B. increases the opportunity cost of future consumption, […]

Question Suppose a firm has a production function: Y =A∗K1/3N2/3 with A = 100 and K = 40. Output sells for a price of $10 each. The nominal wage is W = $500 and the price level is 10. How many workers should the firm […]

Question .The distinction between consumption and investment is: A. that only households consume and only businesses invest. B. somewhat arbitrary, since investment includes housing investment, which does not increase future productive capacity. C. that investment always increases future productive capacity, while consumption does not. D. […]

olgtltligtDicks research department estimates elasticity of demand for soccer balls in the store to be Question olliDicks research department estimates elasticity of demand for soccer balls in the store to be -1.5. If each soccer ball delivered to the store costs $10, what is the […]

Question A firm is producing 1,000.units of output with 40 units of labor and 30 units of capital. The marginal product of the last unit of labor and capital are, respectively, MPL= 60 and MPK =120. The prices of labor and capital are, respectively, w […]

Question –How would an increase in the supply of labor affect the natural level of employment and potential output? How would it affect the real wage, the level of real GDP, and the price level in the short run? How would it affect long-run aggregate […]

Question Someone once said that economics tells us that disease should not be 100% eliminated from earth. Why would anyone think that disease should not be eliminated? Is this analysis based on opportunity cost or incentives? Explain Macroeconomics

Question . Describe a situation, either a government policy situation or an economic problem or a private sector situation, where using the CPI to convert from nominal to real would be more appropriate than using the GDP deflator. Macroeconomics

No content from other students Classical economists belief that prices and quantities adjust to the changes in the forces ofsupply and demand and that the economy produces its potential output in the long run. On thecontrary,…Macroeconomics

Question Consider the static AS-AD model. Suppose the actual price level is less than the price level individuals expect. Which of the following is true? (a) output is currently less than the natural level of output (b) the AS curve will tend to shift up […]

Additionally, explain how federal Question Identify and discuss the three types of unemployment, giving examples of each. Additionally, explain how federal government economic policy might work to reduce each type of unemployment. A graph is required. Macroeconomics

Question Economics is best defined as the study of how? Select one: a. the government should deal with unemployment and inflation b. individuals decide to use scarce resources in an attempt to satisfy their unlimited wants c. to make money d. to run a business […]

Question 1 Classify Question May 2016 1 ECON1000 Open Campus Worksheet #1 (Covers Units 1 to 5) Question 1 Classify the following as microeconomics or macroeconomics and provide a justification for your choice. (a) Research into why the growth rate of total production increased. (b) […]

Question Consider ye K 1/ 3 2S = 101.y = (K ) 1 3= 4 13J = 31.at steady statef (k )k= 10* 1/ 33103/ 2(as The capital share of national income: 2sue)y = * 13 / Y = K 13 2 2 3( b […]

Question Prove that, if the production function exhibits constant returns, all firms will use the same proportion of capital to labour. Notice that this result means that the analysis in the previous question (which ignores capital) applies to the case where both capital and labor […]

easing is the central bank: purchasing long-term Question One method of conducting quantitative easing is the central bank: purchasing long-term government bonds to increase long-term interest rates. purchasing long-term government bonds to lower long-term interest rates. selling long-term government bonds to decrease long-term interest rates. […]

Question hi tutor how to solve these question? Find the Golden Rule capital stock and add it to your graph in solow model. (Note: you need to maximise consumption per worker.) Calculate: (Please show the entire calculation process) • capital per person, y∗ g • […]

a. The Question Which of the following is correct as an interpretation of the Keynesian consumption function? a. The Keynesian consumption function states that as income increases consumption increases more than proportionately. b. The Keynesian consumption function implies that your consumption depends on your overall […]

1. Suppose an earthquake Question b. For the case, where there are 2 steady states, show graphically how the transitional dynamics for this economy are. Namely, suppose you start to the left of the low steady state capital stock, what happens? What about to the […]

Question How does an increase (decrease) in investment tax credit in a large open economy affect Saving (S), Investment (I), the real interest rate (r), capital flows (CF), net exports (NX), and the real exchange rate (ε)? Macroeconomics

Question This is my work and no I do not intend to submit a tutor’s work as my own. I did research as well my the selected reading. However, to MY understanding multiple choices can be placed to one choice but it’s stated that only […]

After California was hit by deadly forest fires, the price of construction materials, like Question 1. After California was hit by deadly forest fires, the price of construction materials, like plywood, in the southern California tripled in price. In response to customer complaints of ‘price […]

Question Hello, I need help figuring out how to solve this question it was seen in class, but my professor didn’t explain how to get 2-4 so I am stumped. The question is found below: Consider the following numerical example using the Solow growth model. […]

Question 1. Suppose an economy is experiencing higher inflation rate as well as a recessionary gap. Using the policy reaction function, explain whether the Reserve bank will increase or decrease the interest rate? 2. Explain the effect of an increase in imports on the equilibrium […]

Is output ambiguous and is the relation to investment then Question My problem and answer is posted below. My question is; Is output ambiguous and is the relation to investment then also ambiguous? Problem: Use the IS-LM model to answer this question. Suppose there is […]

Question suppose that France and Denmark both produce fish and olives. France’s opportunity cost of producing a crate of olives is 3 pounds of fish while Denmark’s opportunity cost of producing a crate of olives is 11 pounds of fish. By comparing the opportunity cost […]

Question When the central bank controls the interest rate, a rise in the price target will, in the short run, cause: Select one: a. an increase in the nominal wage. b. the wage setting curve to shift downward. c. the AD curve to shift leftward. […]

Question My Question: Please read the question and answer below plus see attached. I’m wondering if we know the effect on investment or if it’s unknown? Question 1. Based on your understanding of the IS-LM model, graphically illustrate and explain what effect a reduction in […]

can output be restored by lowering Question *The question I’m working on and my answer are below. My question to you is; can output be restored by lowering the interest rate causing a downward shift in the LM curve and thus increasing output? Question: Graphically […]

Question 1 The value US real GDP today (in dollars)?51,849The dark areas on the plot? What is the longest period of recession you can identify in the graph?1974 to 1975Time during which real…Macroeconomics

Question My question is on ‘part b’ below. I’m wondering if i picked the right numbers for income change and multiplier. thanks! 1. Suppose the United States economy is represented by the following equations: Z = C + I + G ; C = 500 […]

Question What will be the likely impact of a Canadian import tariff imposed on steel? a. It will increase the real incomes of steel users. b. It will increase employment in the economy as a whole. c. It will raise the total quantity of foreign […]

Question (Macro) Please explain what happens to the short run AD/AS and long run models when new laws prohibit a large segment of the labor force from working. Please clarify the difference between short run and long run (maybe also diagrams representing shifts in the […]

Question Read the article by Carroll Requiem for the Representative Consumer? Aggregate Implications of Microeconomic Consumption Behavior and answer the following questions. 1. What is heterogeneity? 2. What is homogeneity? 3. What is precautionary savings? 4. How does MPC change as the wealth level of […]

Because the theory failed to understand the laws of absolute and comparative advantage, which advocates that trade, may not necessarily be a zero-sum game, mercantilists regulations were gradually removed in Britain in the course of the eighteenth century after the government has fully embraced Adam […]

The demand for corn The increase in the demand for corn due to its use as an alternative source of energy would have effects on the supply of other substitutes, such as soybean. There would be a reduced supply of soybean as the increase in […]

Third, if demand remains unaffected and supply rises, there will be surplus causing a decreased equilibrium price. Fourth, if demand remains unaffected and there is a decrease in supply, there will be a shortage causing an increased equilibrium price. This paper will look at supply […]

Investments are a boon for the progress of any economy. This does not imply that the commercial banks would charge negative interest rates to the investors in order to boost up investment thresholds in the country. The banking institutions may offer loans at zero interest […]

Moreover, there are always huge numbers of people that are self-employed and every one cannot increase their incomes in proportion to the inflation rate so a huge chunk of citizens suffer in this process. In a way, high inflation impacts living standard of the majority […]

Foreign exchange rate is the price of one currency in terms of another currency. BOP has direct relation with the foreign exchange market as the spending of the consumer depends on the value of currency in other countries. Under the free-floating currency regime (McGregor) the […]

European countries that have constituted the EU have also been set to operate under common currency. the euro, making economic transactions between and among member states easy and favorable. This is more so because the member states do not face currency fluctuations in terms of […]

Macroeconomics Assignment EC 211 QUESTION ONE – PERCENTAGE GROWTH IN NORMINAL AND REAL GDP for the years 1991 – 1997 YEAR Real GDP (in billions of Dollars per Year)Nominal GDP (in billions of Dollars per Year)% Growth in Real GDP% Growth in Nominal GDPU.S. Population […]

HW4b Calibrated Business Model Calibrated business model is a concept applied to the selection of constraint values due to macroeconomic confirmation and compares the model’s calculations concerning the variances and co-variances of different series with those in the statistics (Romer 217-220). The methodology entails the […]

Macroeconomics – Economic Growth The Chinese economy has been identified by a rapid growth within the past decade. Its advancements have been driven by wages, increased consumer markets and investments (China Central Television 2014). Other factors include social, political, technological and economic factors. However, leadership […]

International relations Wright denies the existence of the theory of IR based on the principles of the methodology of the study of IR and the conceptual system that offers unified explanations of international occurrences. An initial glance according to Wright is that the speculation of […]

Monday Tuesday Wednesday Thursday Friday 8.30 ECO2142 C Macroeconomic Theory Francesca Rondina HGN 302 10.00ECO2142 CMacroeconomic Theory 1Francesca RondinaHGN 30211.30ECO 1102DIntroductionto MacroeconomicsDavid GrayUCU AUD1.00ECO 1102DIntroductionto MacroeconomicsDavid GrayUCU AUD2.30ECO2117 CIntroduction to Economics of DevelopmentGeranda NottenTBT 333ECO 1302 A Contemporary Macroeconomics IssuesCBY C03ECO 1104 GIntroduction To MicroeconomicsGordon […]

This paper shall discuss the Mundell-Fleming Model as applied to a specific condition of floating exchange rates in an open small economy and perfect capital mobility, with special attention to how fiscal and monetary policies impact the macroeconomy. The writer shall attempt to test and […]

Microeconomics analyzes factors affect prices and how these prices affect the number of goods or services supplied to or from a given market. Moreover, Microeconomics also examines factors affecting the demand for certain goods and services within a particular market domain. On the other hand, […]

Wars and Interest Rates in the United Kingdom Mankiw gives an insight into the relationship that exists between interest rate and other macro-economic variables. With a view to the economic turbulence that United Kingdom has gone through especially during the wars in Europe between 1730-1920. […]

Business Economics Question One Among the very many benefits derived from capitalist economy in U.S. are the principles of equality and secondly freedom. U.S. upholds the rule of equality among its citizen with regards to services provision, the rule of law and justice. All these […]

A single estimate is then derived and published as the official estimate of GDP. There are two ways to measure the GDP, Real and the Nominal. Every country uses estimates of GDP in real terms as the international standard to measure growth in an economy. […]

5 1250 The global recession of 2008 also affected their economies, but their experiences in international trade are all worth studying because they derived much success in it. With these HPAE are subgroups such as the Four Tigers, namely Hong Kong, Singapore, South Korea, and […]

If interest rates are forecasted to be low in an economy, then it makes productive investors believe that in the long run, cost of borrowing funds would be less. Under such circumstances, the rate of investments made in an economy would increase and level of […]

Current events report and analysis Summary According to the estimates of the International Energy Agency the production of the oil of the United States has been on the rise. This increase in the production of the oil is much more than it was estimated by […]

112750 Moreover the population and area of India is much larger than the combined area of all countries under EU. On the other hand there is the example of USSR breaking up into 14 smaller countries. Ruble was the currency of a unified USSR, but […]

Book Review Book Review Macroeconomics 3rd Edition The most important lesson from this book is the economic model of trade-off. As an economist, I would like to point out that trade-off is a very crucial concept in business. As Paul Krugman and Robin Wells exclaim, […]

Unemployment prevalence is normally measured with what is normally termed as unemployment rate which is defined by expressing those out of labour force as a percentage of those who are in the force. More often than not the unemployment rate has been used in economic […]

Reduction of the Federal Reserve’s Economic Value Program The reduction of the Federal Reserve’s Assets both in actuality and prospect has created substantial challenges to various emerging market economies. However, this change has been cited as inevitable in some case, but has caused huge criticism […]

3rd July Economic forecasting at Bank of Green One of the major issues that are affecting the investors is the slow growth of GDP an aspect that results to low national demand as well as reduced consumers purchasing power. Additionally, the decline in the consumer […]