Macroeconomics Answers

describe the direction that the authorities should follow in order to reverse the continually deepening economic stagnation in South Africa?

1. difference(s) between the classical and Keynesian aggregate demand schedules. In your explanation indicate what factors shift aggregate demand in the classical model and Keynesian model? (4)

What is the key difference between the classical and Keynesian aggregate supply functions? What are the key factors that drive these differences? (4

Instructions that help match one person's saving with another person's investment are collectively called?

11. Define and put an example of frictional, structural and cyclical unemployment? What is

the natural rate of unemployment?

12. Describe the flowing concepts:

(a) Real versus nominal wage,

(b) Minimum wage versus efficiency wage

(c) What is steady-state unemployment? If a fraction of job separation is 1.5% and a fraction of job

finding is 23%. What will be the steady-state unemployment rate?

Let’s say, in September 2018 the Walton (Bangladesh) have manufactured 100 LED TVs

(manufacturing cost was Taka 10 million) than usually they produce in a year. But they will start

selling these TVs on July 2019. (Fiscal Year is July to June in Bangladesh)

(a) Will the cost be counted in Bangladesh’s GDP FY2018-19?

(b) Instead, if the company would sell these TVs by June 2019 with a value of Taka 15 million – what

would happen to Bangladesh’s GDP FY2018-19?

Suppose f(x,y)= 4x² + 3y².

a. Calculate the partial derivatives of f.

b. Suppose f(x,y)= 16. Use the implicit function theorem to calculate dy/dx.

c. What is the value of dy/dx if x=1, y=2? 

Suppose that an economy is composed of three classes. Labourers, traders and capital owners. The size of each of the classes are 60%, 30% and 10% respectively. Laborers produce all the output in this economy by using capital borrowed from the capitalists and then use the services of traders to market their produce. For this, the labourers have to pay 40% and 20% of their produce to the capitalists and traders respectively. a. Draw the Lorenz curve for the income distribution of this economy. Calculate the Gini Coefficient. b. Suppose that the capitalist are taxed 10% of their income and this is distributed as transfers to the labourers. Draw the new Lorenz curve and compare income inequality between the market income distribution and the disposable income distribution

Consumption = 100+0.8Yd

Investment = 60

Taxes = -150+0.25Y

Government Spending = 80

Find Income and government deficit

a)     Determine the Fixed Cost, Average Variable cost, and Marginal cost functions for a firm whose total cost function is defined by

C = 36x-10x^2+2x^3 

a)     In an Economy, the consumers are known to consume 40% of their disposable income, while if they earned no income, they would consume commodities worth 50 million shillings. The government takes 50% of consumers’ income in form of income tax while the other sources contribute 105 million shillings to the government. The government spends 250 million shillings on its projects. The rest of the information concerning the economy is as follows:

i)                  Identify the endogenous variables in the models of this economy        (3 mark)

Drive the IS and LM equations for the economy described above