Macroeconomics Answers

What would be the implications of import quotas ver's licensing and other administrative barriers to Heckscher Ohlin trade model?

Y = C + I + G

C = a + b(Y - T)

G = gY

a. Find the equilibrium national income(Y)

b. what further restriction on the parameter is needed for solution to exist

If the price of demand is 1.5 and price decreases by10%,then quantity demanded?

A town with residents is planning of constructing a Public Park. The park will either be built  or not . The total cost is C. Consumers have preferences over the park and a private consumption of good  given by. The price of  is.

a. If the income level of consumer  is, what is the maximum contribution that consumer will be willing to make to make this park? I.e. Consumers reservation Price (5marks).

b. What is the total maximum cost  for which building the park is Pareto optimum for some allocation of costs to all consumers? (5 marks).

c. Assume that  is less than . The Government is proposing a fixed contribution plan where everyone chips in . If anyone backs out, the project will not get built. Is building the project Nash equilibrium? Is not building the project Nash equilibrium? Why? (10 marks). 

What is the formula for CPI

What is NAIRU

If kaci finds $1,000 under her bed and deposits in a bank, what is the immediate change in the bank’s excess reserves?

Q1) Suppose the market demand for playing cards is given by the equation

Q = 600 – 100P

Where Q is the no. of decks of cards demand each year and P is the price in Rupee. For a price increase from Rs. 2 to Rs. 3 per deck, what is the price elasticity?

With following values, c = 0,7, t = 0,41 and m = 0,86 use the multiplier and calculate the potential impact of the President’s R791 billion infrastructure investment plan on the value of GDP in 2021. 

Which of the following statements regarding real GDP is true?

1.Real GDP is not adjusted for inflation

2.Real GDP only includes all things that contribute to happiness.

3.Real GDP takes a country’s population into account.

4.Real GDP is an imperfect measure of quality of life.

5.Real GDP reflects how a country uses output to affect living standards