Macroeconomics Answers

advise the government on how to promote industrial development in south africa

briefly explain the failures of the international measures in addressing environmental problems

how succesful was the new grouth path in influencing economic growth and development in south africa

briefly explain the weaknesses of rsa industrial development zones

Examine the data in the appendix to Chapter 19. Locate the figures for nominal and real GDP for 2006 and 2007. Calculate the GDP deflator. What were the rates of growth of nominal GDP and real GDP for 2007? What was the rate of inflation (as measured by the GDP deflator) for 2007? Compare the rate of inflation using the GDP deflator with that using the CPI.

You are given the following information about an economy:

Gross private domestic investment = 40

Government purchases of goods and services = 30

Gross national product (GNP) = 200

Current account balance = -20

Taxes = 60

Government transfer payments to the domestic private sector = 25

Interest payments from the government to the domesticprivate sector = 15 (Assume all interest payments by the government go to domestic households.)

Factor income received from rest of world = 7

Factor payments made to rest of world = 9

Find the following, assuming that government investment is zero:

a. Consumption

b. Net exports

c. GDP

d. Net factor payments from abroad

e. Private saving

f. Government saving

g. National saving

Consider the UNILUS economy in the long-run described by the following equations:

Y = C + I + G, Y = 5,000, G = 1,000, T = 1,000, C = 250 + 0.75(Y − T), I = 1,000 − 50r;

A. Compute private saving, public saving, and national saving.

(5 Marks)

B. Find the equilibrium interest rate. (5 Marks)

C. Now suppose that G rises to 1,250. Compute private saving, public saving, and national savings. (5 Marks)

D. Find the new equilibrium interest rate. (5 Marks)

A. In your hypothetical economy, The Gross Domestic Product at Current Prices for 2021 was estimated at K10000 compared to K8000 recorded in 2020. In addition, Gross Domestic Product at constant market prices was K8000 in 2021 and K600 in 2020. Calculate the GDP deflator for 2020 and 2021 and the inflation rate between the two years

B. Explain how strong trade unions can cause unemployment and inflation in an economy.

Describe Keyne's theory of aggregate demand as it relates to wage levels and employment. Did Keynes believe that unemployment is caused by sticky wage.