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We call the model of income determination developed in this chapter a keinsien one . What nakes it keinsien as apposed to classical one ?
Explain whether each of the following events shifts the short-run aggregate supply curve, the aggregate demand curve, both or neither. For each event that does shift a curve, draw a diagram to illustrate the effect on the economy.
a) Households decide to save a larger share of their income.
b) Sri Lankan farmers suffer a prolonged period of unfavorable weather conditions for agriculture.
c) Increased job opportunities overseas cause many people to leave the country.
Explain whether each of the following events shifts the short-run aggregate supply curve, the aggregate demand curve, both or neither. For each event that does shift a curve, draw a diagram to illustrate the effect on the economy.
a) Households decide to save a larger share of their income.
b) Sri Lankan farmers suffer a prolonged period of unfavorable weather conditions for agriculture.
c) Increased job opportunities overseas cause many people to leave the country.
(i) Ceteris paribus, as the real wage rate increases, the quantity of labour demanded
increases.
(ii) An increase in the working age population results in an increase in the supply of labour.
(iii) A change in the real wage rate brings a movement along the labour supply curve.
(iv) The demand for labour is determined by the diminishing returns to labour.
A. Only (i), (ii) and (iv) are correct.
B. Only (ii), (iii) and (iv) are correct.
C. Only (i) and (iii) are correct.
D. Only (i), (iii) and (iv) are correct.
Outputs (units) - - - - - - - Total costs (R)
0 - - - - - - - 100
1 - - - - - - - 110
2 - - - - - - - 130
3 - - - - - - - 166
4 - - - - - - - 220
5 - - - - - - - 300
The average total cost of the fourth unit is___________
Explain whether each of the following events shifts the short-run aggregate supply curve, the aggregate demand curve, both or neither. For each event that does shift a curve, draw a diagram to illustrate the effect on the economy.
a) Households decide to save a larger share of their income.
b) Sri Lankan farmers suffer a prolonged period of unfavorable weather conditions for agriculture.
c) Increased job opportunities overseas cause many people to leave the country.
Give three reasons why a demand curve slopes downwards..
May I have a detailed explanation.
Now we look at the role taxes play in determining equilibrium income. Suppose we have an
economy of the type in Sections 10-4 and 10-5, described by the following functions:
C 5 50 1 .8YD
−
I
5 70
−−
G
5 200
−−
TR
5 100
t
5 .20
a.
Calculate the equilibrium level of income and the multiplier in this model.
b.
Calculate also the budget surplus, BS.
c.
Suppose that t increases to .25. What is the new equilibrium income? The new multiplier?
d. Calculate the change in the budget surplus. Would you expect the change in the surplus
to be more or less if c 5 .9 rather than .8?
e. Can you explain why the multiplier is 1 when t 5 1?
(a). Graph the percentage change in GDP per capita (constant 2010 US$) for Malaysia, Vietnam, and Thailand over the period 2005 to 2019. (i). Using a chart, compare the performance of the selected countries based on the percentage changes in GDP per capita over the period 2005 to 2009. (ii) Briefly explain in your own words the possible causes of the sharp drop in GDP per capita in 2011, 2013-2014, and 2008-2009 for at least one selected country. (iii). Explain in your own words why the trends in GDP per capita over the periods differ for the selected countries. Answer this question using the World Bank World Development Indicators database, accessible at https://databank.worldbank.org/source/world-development-indicators#. Note: Report a table containing the percentage changes for each year from 2006 onwards. Words and numbers in the reported table are excluded from the word count.
#339914 on Dec 2023