Macroeconomics Answers

1.1Objectives of mixed economy

1.2 characteristics of mixed economy

What is the focus of South Africa economy

Critically analyse the South Africa ieconomy

Characteristics of South African economy

Derive the conditions for steady state growth in the Solow model. What are its implications? In what respects is the golden rule different from the steady state?

Suppose an economy is described by the following equations.

C=$100 +0.75Y and I =$300

(a) calculate the equilibrium level of national income and graph the aggregate expenditures curve and 45 degree line.

(b) suppose saving increases by $50 at every level of national income. How would the aggregate expenditures curve you drew be affected? explain.c calculate the new equilibrium level of national income.

(c) Calculate the level of savings at the original equilibrium and the the new equilibrium. Does this example demonstrate the paradox of thrift? Explain.

(d). Illustrate the original equilibrium level of national income and the change in the equilibrium level of national income due to the increase in saving form a,b and c above using the saving and investment graph. Explain your graph carefully

How do economists use the Model of aggregate demand and aggregate supply in their analysis of the economy?

Explain what the BP curve indicate when it is incorporated in an IS-LM model