Macroeconomics Answers

 If the government imposes a $20 floor price for this good or service, would a surplus or deficit situation ensue on this market? If yes, what is the dollar value of this surplus or deficit? 

Q3. Suppose that people consume only three goods, as shown in this table: Tennis Balls Golf Balls 100 Plus 2006 Price RM2.00 RM4.00 RM1.00 2006 Quantity 100 100 200 2007 Price RM2.00 RM6.00 RM2.00 2007 Quantity 100 100 200 a. What is the percentage change in the price of each of the three goods? b. Using a method that similar to the consumer price index, compute the percentage change in the overall price level. c. If you were to learn that a bottle of 100 Plus increased in size from 2006 and 2007, should that information affect your calculation of the inflation rate? If so, how? d. If you were to learn that a bottle of 100 Plus introduced new flavors in 2007, should that information affect your calculation of the inflation rate? If so, how?

The central bank of your assigned Caribbean country decides to pursue an expansionary monetary policy. (i) Identify one possible action they could take. (1 mark) (ii) Carefully explain, in as much detail as possible, how the chosen action will impact the money market. (5 marks) (iii) Illustrate the overall impact of the chosen action on the money market. (3 marks)

(c) Suppose that 20,000 of the employed switches to jobs in the underground

economy. When interviewed by STATIN, 50% of these switchers report that they

are not working and not seeking work, while the other 50% report that they are

not working but seeking work. Explain what happens to the official

unemployment rate and the “true” unemployment rate. (2 marks)

(d) Illustrate and carefully explain the impact of an increase in the income tax rate

from 25 percent to 35 percent on the demand for labour, supply of labour,

equilibrium wage and level of employment. (6 marks)

(f) With the aid of a well labelled diagram, carefully explain the impact on the

money market if there was a discovery of gold that fuels inflation. (5 marks

how does an increase unemployment affect the is lm model macroeconomics. use diagrams

What was the annual PPI rate for final manufactured goods for July 2021?

A.7.0% B.0.8% c.5.3% d.7.1%

Which province recorded the highest consumer for the month of September 2018

a.Limpopo b.Western Cape c.Free State d.Gauteng

Which year is used as abase year inflation in South Africa

a.2010 b.2008 c.2012 d.2016

How many Sustainable Development Goals are there

a.10 b.17 c.5 d.8

Which one of the following countries is not a member of African Union (AU)

a.Nigeria b.Yemen c.Angola d.South Africa

Prove that the open economy multiplier is the reciprocal of the sum of marginal propensity to save (MPS) and marginal propensity to import (MPM).

A two sector economy has a total income of rs 150 billion and marginal propensity to consume (MPC) is 66.67%. How much does this economy needed to invest once for all to increase it total income by 100%.

You have agreed to make investment in your friends agricultural farm. This would require an amount of $20,000 as initial investment on your part. Your friend promises you revenue (before expenses) of $3600 per year the first year and thereafter the revenue increases by $200 per year. Your share of the estimated annual expenses is $1000. You are planning to invest for six years. Your friend has made the commitment to buyout your share of the business at that time for $24000. You have decided to set a personal MARR of 15% per year. Judge the profitability of the investment project by using Future Worth (FW) method.

. Beef supplies are sharply reduced because of drought in the beef-raising states, and consumers turn to pork as a substitute for beef. How would you illustrate this change in the beef market in supply-and-demand terms?