Macroeconomics Answers

MRTSlk for Q = 10K^0.5 L^0.5

Consider an economy having following values of Consumption, Investment, Government

Spending, and Taxes, 

C = 300 + 0.7Y_d         I = 200 – 200i G = 600          T = 100   

Derive the aggregate demand equation. Also, calculate the output in an economy.  

Use diagrams to illustrate the consumption function (20)

1. Use a production possibilities curve to distinguish between maximum attainable combinations, attainable but inefficient combinations and unattainable combinations of the production of two goods. (20)

Dedication of macroeconomic

Explain why flexible labour markets are such an important element in supply side policies? 

As a business economist, critically analyse how changes in the world price of oil affect the amount of frictional unemployment in a country

In response to unemployment challenges in an economy, the government put in place several macroeconomic policies. Discuss at a theoretical level how public policies such unemployment benefits and tax incentives can affect the employers, government and the level of unemployment, taking into account the age groups, skills endowments and substitution effects of the various workers in an economy

Although managerial economics is based primarily on microeconomics, explain why it is

also important for managers to understand macroeconomics.

Prove the foreign investment multiplier is equal to 1 all over mpm + mps (1/mpm+mps)