Macroeconomics Answers

Explain the effects of tariff on the current account of an importing country.

“A country with current account deficit is indicate a sign of weakness while a country with

current account surplus is indicate a sign of strength in terms of economic growth”

Do you agree with the above statement? Justify your answer.

Country A and country B both have the production function Y = F(K, L) = K^1/2L^1/2.

a)     Does this production function have constant returns to scale? Explain.         

What is the per-worker production function, y = f(k)? [Hint: use the solow model] 

suppose that the net investment flow is described by the equestion I(t)=6t1/2 and that the initial capital stock at time t=0 is k(0) what is the time path of capital.what will be the capital formation during the time interval (3,5).

1.       How would each of the policies listed in parts (a) through (b) change the Tanzi–Olivera effect?

a.        Requiring monthly instead of yearly income tax payments by households.

b.       Assessing greater penalties for under-withholding of taxes from monthly paychecks.

c.        Decreasing the income tax and increasing the sales tax.

1.       What is the rate of money growth that maximizes seignorage in the economy described in problem 6(b)? (Hint: you learned in problem 6(b) that seignorage, in the medium run, is greater at money growth of 50% than at money growth of 25% or 75%. Start by calculating seignorage for money growth rates near 50%. Increase and then decrease money growth rates by one percentage point until you find the answer.)

if Sue sold 100 bears what would her total revenue be

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