Macroeconomics Answers

Explain, with the aid of a graph, what will happen to the exchange rate between the rand and the dollar if more South African residents purchase shares in American companies. Also comment on the impact on the equilibrium quantity of dollars

In the AD-AS model a simultaneous increase in government spending and increase in the price of oil will lead to:

Q.2.2 Identify any two factors that will cause a shift to the supply of dollars curve. 

Explain, with the aid of a graph, what will happen to the exchange rate between 

the rand and the dollar if more South African residents purchase shares in 

American companies. Also comment on the impact on the equilibrium quantity

1. According to Viscusi and Gayer(2005), regulations in the United States vary greatly in the cost per each life they save and the value of life is between $4 million and $10 million(Viscusi, 2006). The regulation to install passive restraints in vehicles has a cost per life saved of $600,000, whereas the regulation to remove asbestos in workplaces has a cost per life saved of $180 million. What regulations pass a cost-benefit test? How might resources be shifted between these regulations in order to reduced cost or save more lives?

The income elasticity of demand for primary commodities tends to be relatively low, while the income elasticity of demand for manufactured goods and services tends to be higher. Examine the likely effects of this for individual producers and for the economy as a whole.