Macroeconomics Answers

With an aid of a diagram, a weaker currency can help domestic economy to recover

what is the difference between GDP and GNP? which one is a better measure of economic performance of a country?

Calculate the equilibrium income level Y given the following information:

Autonomous Consumption = 174

Marginal Propensity to Save = 0.48

Investment = 155

Explain whether each of the following statements is true, false, or could go either way, 

depending on the circumstances. If a question has more than one part, please explain 

why each part is true, false, or uncertain. Use the analytical tools learned in this course 

to back up your answers. EXPLANATION DETERMINES MARKS. 

a) The main reason why central banks tend to focus on the stabilization of core 

inflation when the prices of food and energy are high is that this is an effective 

way of distracting the public from the high level of headline inflation and thus 

to keep inflation expectations well anchored. 

b) The full employment level of output is the output level corresponding to an 

unemployment rate of zero. 

c) The Monetary Policy Committee of the Bank of Ghana after its meeting in 

November 2015 increased the monetary policy rate from 25% to 26%. This 

represents a 1% increase the monetary policy rate. 

List four factors in the macro-Environment and explain how each of these external forces can influence Volkswagen in anyway