Macroeconomics Answers

What is the aggregate spending equation if the saving function is S = -1000 + 0.25Y and autonomous investment spending is 100?

 Suppose the supply and demand curves for a particular product are given by: QS =-20+2P QD =100-2P. where QS and QD are quantities in units and P is the price per unit.

How successful was the NGP in influencing economic growth and development in South Africa

. What is law of demand? Explain why there exists a negative relationship between the price of a product and its quantity demanded? Note: discuss the three reasons why the law holds. (Income, substitution effects and law of diminishing marginal utility)

Which of the following items would NOT be included in the calculation of GDP?

[1] purchase of electricity by a household for home use

[2] merchandise exports by local firms

[3] purchase of a used car by Thomas for personal use

[4] purchase of new bicycles by a bicycle rental firm

explain two determinants of household consumption (9).

friedmania is a country in which the quantity theory of money operates. the country has a constant population, capital stock and technology so real GDP does not change. in 2010, real GDP was $500 million, the price level, measured by the GDP deflator was 150 and the velocity of circulation of money was 10. (because the level is measured by the GDP deflator, it must be divided by 100 before it is used in the equation of exchange). in 2011, the quantity of money increased by 20 percent.

what was the quantity of money in 2010?

what was the velocity of circulation in 2011?

what was the price level in 2010?

iv. When price of corn is R200 and of textiles is R150. Calculate income for both countries