Macroeconomics Answers

Identify any five sectors or projects in Pakistan where the
market has failed to determine a true value of the environment and
hence caused a market failure.

If in an economy, people hold 70 percent of their money in the form of demand deposits and banks hold 10 percent of demand deposits as reserves, how will an open market purchase of bonds worth Rs 200 crores affect the overall money supply in the economy?

S=-80+0.25Y, and import function is is given as 100-0.05Y then find

a. At what level of equilibrium level of income and consumption will occur?
b. If government expenditure increase bye 55 crore and government imposes the lump sum taxes worth 15 crore what impact will it have on consumption and income
c. What will happen to imports if government raises the import duty by 10%
d. Calculate the multipliers of government expenditure and foreign trade

To bring full employment, government spending should be

Using an appropriate hypothetical example, describe how commercial banks “creates
and multiplies money” in an economy

Consider a decrease in the demand for domestic air tickets in South Africa. If at the same time there were a rise in the cost of insurance of airline then in comparison with the original equilibrium there would be

Discuss with help of graph (s) the general equilibrium of the economy and how
economy will reach to general equilibrium if goods market is in equilibrium but
money market is not.