Macroeconomics Answers

As a Production Manager of a manufacturing firm that produces both an elastic good and an inelastic good, illustrate to a new board of the organisation the relationship between price elasticity of demand and total revenue, and how the elasticity concept can be used to maximise revenues of both commodities? Illustrate your answer using relevant diagrams of elastic and inelastic goods.     

What is the difference between a change in the quantity supplied of Real GDP and a change in short-run aggregate supply?

𝐈𝐝𝐞𝐧𝐭𝐢𝐟𝐲 𝐨𝐧𝐞 𝐩𝐫𝐨𝐝𝐮𝐜𝐭 𝐨𝐟 𝐲𝐨𝐮𝐫 𝐜𝐡𝐨𝐢𝐜𝐞 𝐭𝐡𝐚𝐭 𝐢𝐬 𝐬𝐨𝐥𝐝 𝐢𝐧 𝐠𝐫𝐚𝐦𝐬 / 𝐤𝐢𝐥𝐨𝐠𝐫𝐚𝐦𝐬 / 𝐦𝐢𝐥𝐥𝐢𝐥𝐢𝐭𝐫𝐞𝐬 / 𝐥𝐢𝐭𝐫𝐞𝐬, 𝐞𝐭𝐜. 𝐈𝐧 𝐚 𝐭𝐚𝐛𝐮𝐥𝐚𝐫 𝐟𝐨𝐫𝐦𝐚𝐭, 𝐫𝐞𝐜𝐨𝐫𝐝 𝐟𝐢𝐯𝐞 𝐪𝐮𝐚𝐧𝐭𝐢𝐭𝐢𝐞𝐬 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐩𝐫𝐢𝐜𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐩𝐫𝐨𝐝𝐮𝐜𝐭. 𝐘𝐨𝐮𝐫 𝐭𝐚𝐛𝐥𝐞 /𝐬𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝐬𝐡𝐨𝐮𝐥𝐝 𝐡𝐚𝐯𝐞 𝐚 𝐡𝐞𝐚𝐝𝐢𝐧𝐠.

explain why supply-side measures are more desirable than demand-side measures?

How does fluctuations of GDP may affect the business. Discuss the effect of both increasing and decreasing trends on the business.

a). What are the three approaches to measuring economic activity? Why do they give the same answer?

b). Define private saving. How is private saving used in the economy?what is the relationship between private saving and national saving?

a).The model of income determination is called a keynesian model. What makes it keynesian,and not classical?Eludicate your argument.

b).What is a business cycle? Explain its phenomenon. How does the unemployement rate behave over the course of a business cycle?

c). Why do we call mechanism such a proportional income taxes automatic stabilizers? How and why it affects fluctuations in output?Explain this mechanism carefully.

If the price elasticity of demand for Omo washing powder is 3.0, a ________ drop in price leads to a __________ rise in the quantity demanded.