Macroeconomics Answers

What do you mean by a multiplier? Explain and derive its formulation in a 4-

sector Keynesian model. Highlight and illustrate all the multiplier properties,

interpretations and graphical representations in your analysis.

Which of the following is/are correct regarding the distinction between macroeconomics and microeconomics?

a) salaries paid to checkers employees is an example of a macroeconomics variable

b) an import by auto spares of a new machine for painting cars is an example of a microeconomic variable

Discuss entrepreneurial education as a means to address unemployment in South Africa

• Which of the following is a final good or service?
• A. A haircut paid for by a student.
• B. Fertiliser purchased by a farm supplier.
• C. Motor vehicle windows purchased by a motor assembly plant.
• D. Diesel fuel bought for a delivery truck

A farm grows wheat and produces pork. The marginal cost of producing each of these products increases as more of it is produced. Is the farm more efficient with the new technology than ot was with the old one? Why?

Explain, with the aid of a graph, the demand-pull inflation as a cause of inflation

In a keynesian model it is assumed that the consumption function is given by C= 2000 + 0.75 (Y-T) and the planned investment is 1,000 government purchases and taxes are both of those and formulate and draw a graph of planned expenditure as a function of income

What is the equilibrium level in the part above

If the government purchases increased by 1250 what is the equilibrium income

With the aid of a algebra prove that a balanced budget multiplier is always equals to 1

Sup suppose the level of autonomous investment in an economy is 2,000 shillings and the consumption function is c=800 +0.25Y find the equilibrium levels

What will be the increase in national income if the investment increases by 250

Suppose that the level of planned investment is to the ceilings and the saving function is given by S=-800 + 0.25Y ,find the equilibrium levels of income

Suppose the consumption function is given by C=200+0.2Y ,find the equilibrium levels of income

With is a graph discuss the ranges of the aggregate supply curve

The following equations describe an economy. (Think of C, I, G, etc as being measured in billions and I as a percentage; a 5 percent interest rate implies i = 5.)

C = 0.8(1 – t)Y

t = 0.25

I = 900 – 50i

G = 800

M^d/P = 0.25Y – 62.5i

M^s/P = 500

a)     Derive the equations that describes the IS and LM curves?                          

b) What is the equilibrium level of income and interest rate?   

Q.1.1 Explain, using the AD-AS model, the effect of an increase in investment in the macroeconomy on the equilibrium price level and the equilibrium level of output.