Macroeconomics Answers

How can exports and imports benefit a company like Volkswagen in relation of job creation and production line?

a) A firm’s demand function for good z is estimated as follows: Qz = 4500- 1/8 Pz+ 1/5 Pa – 1/9 Pb+ 2Y Where, Qz= Quantity of good z, Pz= the price of good z, Pa= the price of good a, Pb = the price of good b, Y = income i) Justify whether the law of demand is valid here. (5 marks) ii) Explain how goods a and b are related goods to good z. (5 marks) iii) Explain whether good z is a normal good? 

how does export and imports can benefit like volkswagen in relation to resources

 Explain fully how a real depreciation affects output. (8 mark) 

with the help of an IS-LM diagram show the effect of restrictive monetary policy on output under flexible exchange rates and with perfect capital mobility

Discuss the three common properties of preference relations and how they impact a person's choice. Use applicable examples based on your own individual experience

list and explain 2 reasons why the AD curve has a negative slope