Macroeconomics Answers

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

(a) If year 2 is the base year, give the price index for year 3.

                 (b) Give the nominal GDP for year 4. $120

                 (c) What is the real GDP for year 4?

                 (d) Tell which years you would deflate nominal GDP and which years you would inflate nominal GDP in finding real GDP.

C 150+0.5Y.

1 = 300-150r.

Ms = 500,

L=0.50y+200-150r of which kPY = 0.50y and hr = 200-150r.

TAX = 50

GOVERNMENT EXPENDITURE = 500

Find (a) the equilibrium level of income and the equilibrium rate of interest, and

(b) the level of C, I, and L when the economy is in equilibrium.

(c) If the money supply increases from 500 to 600, What happen to the equilibrium level of income and the equilibrium rate of interest

What are C,I, KPY and hr at the new equilibrium?

(d) If autonomous investment falls from 300 to 150, what will happen on our entire economy?

In no more than 400 words, explain the impact of COVID19 crisis on any economy of the Pacific (of your choice). Discuss specifically its impact on GDP, trade, inflation, employment and business activity. Supplement with the relevant national statistics, where possible.