Macroeconomics Answers

Develop a qualitative analysis on income, interest rate, trade balance and private consumption using the IS-LM-BP model if the Fiji dollar was devalued. Assume perfect capital mobility. Carefully discuss the adjustment processes.

Identify the essential features of a social dilemma (an interaction that may be represented by a prisoner’s dilemma game)

List the various factors that facilitate cooperation in various real-life scenarios of social dilemmas.

Capital is the specific factor of sector X and land is the specific factor of sector Y . The marginal product of labor in sector X and that in sector Y are, respectively, given by MPLX = 150 − LX and MPLY = 300 − LY . This economy (Home) which is a small open economy has a comparative advantage in good Y and engages in free trade. Prices of good X and good Y under free trade are, respectively PX = 1 and PY = 1. The labor endowment, capital endowment and land endowment in Home are, respectively, 240, 100 and 60.

Suppose that an ad valorem import tariff, the rate of which is 100%, is imposed in Home (assume PX = PY = 1 under free trade).

1. How many workers does the tariff increase in the import sector?

2. Compute the wage rate with the tariff.

3. Compute the price of capital (i.e., the rental rate on capital) with the tariff.

4. Choose the correct statement(s).

a. capital owners gain from the tariff

b. land owners gain from the tariff

Is it True? or False? that

when the commercial banks raises cash reserve ratio(RR) and statutory liquidity ratio(SLR) then less money is left with central bank for lending ?

How Covid19 has impacted Trinidad and Tobago:

1. Employment
2. GDP
3. Inflation Level

(a)   If the government decrease taxes by 10%, calculate the effect of the change on :

(i)              Savings                       

(ii)            Consumption                           

(Iii)National income equilibrium       

Can Denel be regarded as a monopoly in South Africa

How can an oligopoly cause market failure

By using aggregate supply and aggregate demand curves to illustrate your

points, discuss the impacts of the following events on the price level and on equilibrium GDP (Y) in

the short run:

a) An increase in the money supply with the economy operating at near full capacity.

b) A decrease in taxes and increase in government spending supported by a cooperative Fed acting

to keep output from rising.