Macroeconomics Answers

Explain and show graphically, what happens to the equilibrium price and quantity if a flood destroys much of the water melon crop in Belize and, at the same time, consumer tastes shift toward water melon juice. What would we expect to happen to the equilibrium price and quantity in the market for water melon juice?

Explore 05 yearly data of the following indicators with respect to Pakistan in graphical as well as tabular form, summarize the 05-year economic performance of Pakistan with the help of your data also elaborate the reasons for ups and downs in these factors.

MINIMUM MARKS: 20

a) Gross Domestic Product (GDP)

b) Gross National Product (GNP)

c) Net National Product (NNP)

d) Net Domestic Product (NDP) e) National Income (NI)

f) Personal Income (PI)

g) Disposable Personal Income (DPI)

Use a diagram to explain the three main characteristics of the consumption

function.

State the three possible relationships between production, income and

spending in macroeconomic theory.

If income increases from R1500 to R2000 and the marginal propensity to consume is 0.8, the new level of consumption will be?

COVID-19 adversely affected both our health and economic prospects, which in turn affected the behavior of economic agents—firms and households. Therefore, agents resorted to the ‘wait and see’ approach, which means postponing consumption and investment due to increased uncertainty. a) what impact this change in behavior had on employment and output? b) what effect did it have on the aggregate demand? [Use diagrams to illustrate your responses]. [10 marks

explain what would happen to the rand/dollar exchange rate and the equilibrium quantity of dollars if south african exports to the united states increase

Explain, with the aid of a graph, what will happen to the rand/dollar exchange rate and the equilibrium quantity of dollars if South African exports to the United States increase