Macroeconomics Answers

If 2020 is the base year for real gdp calculations we know for certain that nominal gdp?

describe the course of events in a competitive market where there is a permanent decrease in demand and a permanent increase in demand

Explain graphically how fiscal expansion can be accomodated by monetary expansion through IS, LM curves.

How the golden rule different from the steady state

Ql.( a) Explain graphically the effect of increase in government expenditure on equilibrium level of income and interest rate in case of crowding out.

(b) Explain graphically how fiscal expansion can be accomodated by monetary expansion through IS, LM curves.

Differentiate nominal GDP from real GDP.

Explain the three approaches in measuring GDP: expenditure approach, income approach, production approach.

With the specific reference to the current Russian-Ukrainian war, Discuss both the positive and the negative impacts of international trading

1. Examine the current ten years development plan in Ethiopia. Identify its strengths and weaknesses.

2. Some scholars argue that the current Ethiopian economy seems that it is in “underdevelopment trap,” or long-term stagnation situation. Suggest and elaborate possible development theories that help the country to overcome the obstacles for its development.

3. Government statistical results show that there has been remarkable economic growth in Ethiopia during the last couple of decades or so. However, some proportion of the population has been complaining that they become poorer “despite the observed economic growth”. Evaluate the economic performance observed in the last couple of decades in Ethiopia in development economic terms.

Review (closed economy)

C=C0 +0*8 yd

I=150-10i

G=250

T=200

Ms=100

Md=40+0.ıy -10i

A) Write the equation for IS

B)Write the equation for LM

C) Find the equilibrium valuer for income, Y, and interest rate, İ, (IS/LM)

D)Suppose that, investment is completely interest inelastic , Write new IS-LM equations?

E) Find new equilibrium values for income and interest rates

F) Draw IS-LM diagrams