Macroeconomics Answers

How fast is a rabbit

Describe five economic effects of a continuous, moderate inflation.

Give three reasons why national income accounts are not very useful in making

comparisons of living standards between countries.

Explain the three ways of measuring the national income figure.

1.     Assume a market has the following demand and supply functions:

Q_D = 28-3P

Q_S = 2P-12

Where P is the price

a)     Determine algebraically the equilibrium price and quantity.

b)     Plot the demand and supply curves and confirm your answer.

c)     Suppose supply shifts to Q_s =2P – 2 with no change no change in demand. Determine the new equilibrium price and quantity.

d)    Although the supply curve shifts to the right by 10, the quantity exchanged does not rise by 10, explain why the increase in quantity is smaller.

Suppose a consumers preferences can be represented by the utility function U (x,y)=min(2x,y).also suppose the consumer has 300 dollar to spend and the price of good x is px =3 dollar and the price of good y is py =1 dollar.if the consumer maximize their utility subject to their budget constraint,how much of good x and how much of good y will the consumer purchase?

Suppose a consumers preferences can be represented by the utility function U(x,y)=X2Y .in the table below, identify 4 point s on the consumer s indifference curve where U=10000, find x,y