Macroeconomics Answers

Triniland is recognized as a high-income economy by the World Bank. Assume that households in Triniland decide to increase their savings for retirement. (a) Using a correctly labelled diagram of the loanable funds market, show how the increase in savings will affect the equilibrium real interest rate

With the aid of appropriate diagrams, show and explain why classical economists viewed money as a veil

You are given the following demand and supply equations of a product.

Q_d=100-5p

Q_s= 10+5p

Where, Q_d=Quantity demanded

                   Q_s=Quantity Supplied

                   P= Price per unit

(a) Draw the figures for demand and supply on the basis of the above equations

(b)

What will be the equilibrium price and quantity     demonstrate graphically

(c) Graphically show what sort of adjustment would take place to bring about equilibrium if the price happens to be 5 per unit

As a newly appointed Product Manager by Balaji wafers, you are asked to develop New Product Planning for new flavor of potato wafer. How would you develop new product planning process?

How will goods and services be produced?

As per the SBP Monetary Policy Statement issued on March 19, 2021, State Bank of Pakistan maintained the policy rate @7pc. During the last two years of COVID-19 situations, the policy rate was slashed from 12.5pc to current 7pc to revitalize the economic activities in Pakistan. How this cut will impact the Pakistan’s economy? Do you think the interest rate should be reduced further to single digit to keep running the businesses and to overcome inflation and unemployment problems in Pakistan?

what happens to demand supply curve if supply increase insignificantly but demand decreases significantly?

. Triniland is recognized as a high-income economy by the World Bank. Assume that   households in Triniland decide to increase their savings for retirement.             (4 marks each)

(a)  Using a correctly labelled diagram of the loanable funds market, show how the increase in savings will affect the equilibrium real interest rate.

(b) Based on the real interest rate change identified in part (a), what will happen to Triniland’s purchases of foreign assets? Explain.

(c)  Consider the foreign exchange market for Triniland’s currency. 

derive and explain the marshallian and hicksian demand curves using the indifference curve approach

Disadvantages is import substitution