Macroeconomics Answers

What are the four external factors of macro environment?

Suppose the government implements a price ceiling of $20/unit in this market.  Is this price ceiling binding on the market?

QS = QD

100 - 2(P - 20) = -20 + P

160 = 4P

P = 40

Therefore QD = -20 + 2(40) = 60 units

1. What is the value of the economic surplus that would be generated in the original equilibrium? Is there a deadweight loss due to the price ceiling policy, and if so, what is its value? Briefly explain. 

Effects of Covid19 on output in south Africa

Which one of the following is correct regarding contractionary fiscal policy in the Keynesian model? It will…

• A. decrease the equilibrium level of income.
• B. increase government spending and aggregate spending.
• C. decrease investment and government spending.
• D. decrease inventories.

Please respond to each of the following. Be sure to make full use of graphs, and equations where applicable.

Question 1

Describe the reaction of MPK and full employment if the following events occur in the Bahamas.

a. The deportation of all illegal migrants from around the Bahamas.

b. The Moody’s report on direct foreign investment and consumer confidence.

c. The implementation of payment for the travel visa and Covid-19 testing

Question 2.

The FNM government prior to the 2021 general election, introduced a school lunch program that covered all public-school children. Assume that this program is temporary and only lasted eight months. For a constant level of output, what impact would this program have on desire consumption and desire national saving

An increase in taxation in the Keynesian model with a government sector …

• A. increases the equilibrium level of income.
• B. reduces autonomous spending.
• C. increases the multiplier.
• D. reduces the multiplier.

the upward movement from A to A' in a graph can result from

Expectations of political unrest in South Africa’s upcoming national election is likely to cause a/an ...... in the rand/dollar exchange market.

• A. rise in the value of the rand
• B. overvaluation of the rand
• C. appreciation of the rand
• D. depreciation of the rand

Expectations of political unrest in South Africa’s upcoming national election is likely to cause a/an ...... in the rand/dollar exchange market.