Macroeconomics Answers

Implications of risk and uncertainity for the theory of firm

According to multiple sources, "Americans owe over $1.4 trillion in student loan debt...that's about $620 billion more than the total U.S. credit card debt...the average class of 2016 graduate has $37,172 in student loan debt" (SLH). What potential problems does this pose? What, if anything, should be done about this and by whom? 200 words

2) What motivated you to go to college and do you think that it will be worth the investment? 200 words

3) What should Americans consider before applying to college? 200 words

Summarize w.w. rostow's stages of economic growth

If 𝐶̅ = R20 billion, I = R30 billion, G = R25 billion, X = R15 billion, Z = R12 billion, c = 0.75 and t = 0.20

The value of the multiplier is …

[1] 4.0

[2] 3.5

[3] 2.0

[4] 2.5

The equilibrium level of income is …

[1] 195

[2] 312

[3] 156

[4] 273

Consider the following two headlines appearing in the same day Federal Government’s plan massive hospital construction programmes across the country and New discovery drives down production cost for firms . What will happen to the price levels and Real GDP in the economy in the short run ?

Suppose there is increase in government budget surplus and businesses expect future profits to increase. Use a national savings and Investment demand curve to show how the real interest rate and national savings will ne affected.

Assume an economy in a long run equilibrium with real GDP equal to potential output. Now suppose the bank of canada decreases the money supply . Use a graph to show and briefly state how this impacts interest rate , real GDP and the price level in the short run. What kind of gap is created in economy ? And also show and explain the economy can return to potential GDP in long run.

Assume that the government of Japan wants to control deflation and increase aggregate demand. The government then increased the Reserve Ratio from 10% to 20% hoping that a planned deposit of $5,000,000 will be made.

A) Calculate the new total money supply that will be generated from the planned deposits.

B) Explain whether the government policy of increasing the reserve ratio is right.

Summarize w.w. rostow's stages of economic growth

Y=A(0.025k-0.5N)N

A=2\3

K=2000

N=-18+(18/5)w

5-c=200+(2/3)(y-T)-300r

6-T=-75+(1/4)Y

I=100-100r

G=100

L=0.5Y-200i

M=6300

π=0.10

Using this information solve the question numerically:

Beginning from the initial classical equilibrium suppose that the central bank increases the money supply by 420 while price remains fixed as it's initial long run equilibrium level. What will be the impact of this policy on all endogenous variables in short run and long run?