Macroeconomics Answers

given the following equation U=√X1 X2,. what would be the total effect of a price change when the price of one good reduces by 10% from shs. 30. the income of the consumer is shs. 6000 per month while the price of the good two is 40

The estimated regression of Y on X1, X2, and X3 using a sample of 30 observations, 

gave the following results:

Yt = 2.4 + 3.9X1 + 0.65X2 – 1.46X3

(1.0)

(1.50 (0.40) (0.61)

Adjusted R2 = 0.67

Figures in parenthesis are standard errors of estimates.

a) Asses the statistical quality of the model.

In a country for the year 2019, the minimum consumption level is Rs. 200 and the MPC is .80, the investment is Rs. 250 crores while Government expenditure is Rs. 200 crores. The Government is imposing tax at the rate of 10% of income. Find the equilibrium level of income in the economy and also the amount of consumption, saving and taxes.

Write a detailed note on management of fiscal federalism in Nigeria

Covid-19 has devasted the world. Discuss how Covid-19 has devastated your economy. What are some of the macroeconomic policy responses to the Covid-19 crisis? 

Early last year Fijian Government closed its boarders. Curfew hours and containment zones were introduced to stop the spread of Covid 19 disease. Major hotels, shops and connected sectors were closed and as a result many individuals were out of employment. This business remained closed till to date.

As Macroeconomics student, Discuss the economic impact of Covid-19 on your economy and provide 5 macroeconomics policy responses to Covid-19 crisis? 

Suppose that there are only two goods produced in the economy, Call center services and banking services. Prices (P), quantities (Q) and the number of workers (W) occupied in the production of each good for year 1 and year 2 are given by the following table :

Year 1

Year 2 

Two

P1

Q1

W1

P2

Q2

W2

products

Call cen

tre

10

10

0

50

12

10

0

50

Banking

10

20

0

50

12

23

0

60

a. What is nominal GDP in each year?                                                              

b. Using year 1 prices, what is real GDP in year 2? What is the growth rate of real gdp

c. What is the rate of inflation using the GDP deflator?                             

d. Using year 1 prices, what is real GDP per worker in year 1 and year 2? What is labour productivity growth between year 1 and year 2 for the whole economy?

1. Explain how the following changes in aggregate demand or short-run aggregate supply, other things held unchanged, are likely to affect the level of total output and the price level in the short run. a. An increase in aggregate demand b. A decrease in aggregate demand c. An increase in short-run aggregate supply d. A reduction in short-run aggregate supply 2. Explain why a change in one component of aggregate demand will cause the aggregate demand curve to shift by a multiple of the initial change. 3. Use the model of aggregate demand and short-run aggregate supply to explain how each of the following would affect real GDP and the price level in the short run. a. An increase in government purchases b. A reduction in nominal wages c. A major improvement in technology d. A reduction in net exports

Why Aggregate demand is derived from ISLM model in short run ?

Suppose that there are only two goods produced in the economy, Call center services and banking services. Prices (P), quantities (Q) and the number of workers (W) occupied in the production of each good for year 1 and year 2 are given by the following table : Year 1 Year 2 Two products P1 Q1 W1 P2 Q2 W2 Call centre 10 100 50 12 100 50 Banking 10 200 50 12 230 60 a. What is nominal GDP in each year?