Macroeconomics Answers

In the years prior to European monetary union, long-term interest rates in the countries

forming the (later) euro area converged towards the lowest levels. What could explain

this development

When the government introduces new taxes on the company what happens to the company supply?

Explain the effect on equilibrium price and quantity of a fall in demand, ceteris paribus

Based on the above article, is the expected increase in the residential property prices caused by demand or supply factor? Explain and ilustrate your answer

1. cement sales were recorded at 1.5 million bags when the price was P500 per bag. When the price decreased to P450 per bag, sales increased to 2 million bags. Cement production on the other hand increased from 1.75 million to 3 million bags when the price increased from P475 to P550 per bag. Based on these figures:

• Estimate the demand and supply equations
• Determine the market-clearing (equilibrium) price and volume traded.
• If a price control of P400 is imposed by the government, determine the impact on the market.
• What kind of price control was imposed by the government.
• Illustrate graphically.
• Given the solution to question 1.1, determine the impact on the market if demand increased by 35%.
• Illustrate graphically.

how do you elaborate catch up effect through the differences in per capita capital and per capita output (with example will be better)?

4. Explain how MPC and the multiplier effect would impact a government’s attempt to stimulate its economy in each of the following scenarios.

           a. To stimulate the economy already in a serious recession, the government spends a total of $700 million to send each person a stimulus check of $600. 

Suggest measures to improve gross fiscal deficit

1. Use a demand and supply diagrams of a rand in terms of dollar to illustrate the following (20)

i.                   The decrease in supply for a rand (10)

ii.                 An increase in supply for a rand (10)

Hint: Put price of exchange rates on the vertical axis and quantity (millions) of a rand per day on the horizontal axis

From the data given below, Calculate the Net Domestic Product at Factor Cost using (a) Income Method & (b) Expenditure Method - Particulars Rs. in Billion (i) Sales 19200 (ii) Increase in stock 4160 (iii) Intermediate Consumption 4740 (iv) Depreciation 900 (v) Wages and salaries 10800 (vi) Internet 500 (vii) Rent 1500 (viii) Profit 4300 (ix) Net indirect Taxes 620