Macroeconomics Answers

Consider the effects of a government employment subsidy whereby the

government paid 10 percent of the wages of newly hired workers. How would

employment and output be affected by the program in the classical model? What

would be the effect on the position of the aggregate supply schedule.

Suppose that due for example to reconstruction after a war, the capital stock of a

nation increases. Use the graphical framework to illustrate the effect that the

increase in the capital stock would have on output, employment, and the real wage

in the classical model.

Provide examples of demand-side factors that would not affect the level of output

and employment.

a) A researcher estimated the following regression equation for sorghum production, 

Yt from the use of various amounts of fertilizer, X1 and insecticides X2 on a hectare 

basis using time series data from 2001 to 2010.

The operation model is:

Yt = B0 + B1X1 + B2X2 + ei

The estimated regression equation is:

Yt = 31.98 + 0.65X1 + 1.10X2

(0.24) (0.27) (0.25)

Adjusted R2 = 0.989

Figures in parenthesis are standard error of estimates.

i) Estimate the t-values for each of the coefficients

ii) Interpret the results 

1) An economy has a saving function (s) which is given by the equation s= -300 + 0.2Y. If the level of national income is 3000 what is the APS?

2) If, in an economy, out of every additional 100 of national income 20 is taxed. 20 is spent and10 is spent on imports, the value of the multiplier is?

3) National income =1000 and injection = 75 calculate the new national income if the

i) moc = 0.4 and mpt =0.1

li) mpc = 0.2 and mpt = 0.2

4) A man has a rise in income of 23000 to 26000. As a result his saving rises from 800 to 1200. His mpc is?

what factors militate against the effective compliance with continuous assessment standard by Economics teachers in South Africa

To improve the value of currency, which of the following could work?

List the three broad functions of government and state what they mainly refer to.

Which obstacles impede economics teachers successful adherence with the continuous assessment norm in South Africa

measure used by the government protect  domestic firms from foreign competitio