Macroeconomics Answers

In the labour market, explain how the rate of unemployment is related to the bargaining power and nominal wages.

P=20e^0.4Q and P=100e^-0.2 find equilibrium price and quantity and also consumer and producer surplus

If the supply and demand function are given p=20e^0.4Q and p=100e^-0.2Q, respectively .find the equilibrium price and quantity ,and calculate the consumers and producers surplus

Given that in an economy, , I, MS =300, Mt = 0.4Y, and Mz=125-200r where, Y= income, C= consumption, I= investment, MS= money supply, Mt= transactional-precautionary money demand, Mz= speculative money demand and r= interest rate. Calculate;

The equilibrium level of income and interest rate in this economy.

The level of C, I, Mt, and Mz when the economy is in equilibrium

Now, assuming the economy is open with government (G) participation and  external trade which is summarized as follows; export(X)= 100-0.10Y, import(M)=50, G=100, Taxes(T)= 100 and C, I, MS, Mt, and Mz the same as defined in (a) above. Calculate;

The equilibrium income and interest rate in this new economy.

The level of C, I, Mt, and Mz when the economy is in equilibrium

In the market for Fante Kenley, the supply and demand functions respectively are

and

When there is excess demand, price adjusts according to the equation

Find the long run equilibrium price, P* (that is, the price at which there is no excess demand or supply).

Formulate and solve he first order differential equation giving P as a function of time, t. Is this market dynamically stable or unstable?

If the initial price is P = 50, how close will the price be to its long run equilibrium value, when t = 10? 

If the supply and demand functions are given by and, respectively, find the equilibrium price and quantity, and calculate the consumer’s and producer’s surplus.