Macroeconomics Answers

In the basic solo model without exogenous growth, if labour supply doubles then what happens to output per worker??

Firstly, explain how monetary and fiscal policy is implemented and how they can be used to influence GDP and the price level.

Secondly, the quotation above highlights the unprecedented use that has been made of fiscal policy in countries such as the UK during the crisis. Briefly consider whether fiscal policy will remain the key policy instrument in these sorts of countries in the near future. 

The Government of Botswana is expected to increase expenditure 

by P20 billion for the financial year 2022/23. Using the IS – LM 

analysis, explain with the AID of a diagram how this would cause 

“crowing out”. How could monetary authorities address this problem 

Of crowding out?

If consumption is C=100+0.75Yd

Taxes is T=50+0.5Y

Export is X=200

Import is M=50+0.25Y

Government spending is G=150

Investment is I=200. Y is domestic income and Y is private disposable income. Determine the equilibrium level of output/income.

1.     Suppose the total monetary value of all final goods and services produced in a particular country in 2008 is $500 billion and the total monetary value of final goods and services sold is $450 billion. We can conclude that:

A.   GDP in 2008 is $450 billion.

B.    GDP in 2008 is $450 billion.

C.    GDP in 2008 is $500 billion.

d. inventories in 2008 fell by $50 billion

Which of the following is not an example of qualitative assessment of the sales force?

A.product knowledge

B.customer orientation

C.attitude

D.number of calls made

Explaining multiplier process in open and closed economy by clearly distinguishing the

autonomous and induced expenditures using hypothetical numbers and graphs.

in the aggregate expenditure model for a closed economy assuming investment, government spending and taxes are exogenous, if the marginal prosperity to consume is 0.8, a simultaneous 50 unit increase in government spending and a 20 unit decrease in investment will change equilibrium income by?

Explain the implications on Airbnb should South Africa implement a command economy.

Which of the following statements are correct? a. The use of money eliminates the need for a double coincidence of wants associated with a barter economy. b. An economy in which goods are traded for other goods is called a barter economy. c. Money consists of notes and coins only.