Macroeconomics Answers

n the U.S., President Biden recently approved a $1.9 trillion stimulus package aimed at getting the economy going. U.S. workers who earned less than $ 75 000 a year in 2019 each received a $ 1 400 stimulus check over the past few weeks. Use the IS-LM-BP model to explain what this can mean for the levels of output/income and interest rates in South Africa. Draw the graph and explain the complete chain reaction. 

Graph for equalibrium quantity calculation Qs=1800+02P and Quantity demanded Qd=2400-0.1P

In the U.S., President Biden recently approved a $1.9 trillion stimulus package aimed at getting the 

economy going. U.S. workers who earned less than $ 75 000 a year in 2019 each received a $ 1 400 

stimulus check over the past few weeks. 

Use the IS-LM-BP model to explain what this can mean for the levels of output/income and interest 

rates in South Africa. Draw the graph and explain the complete chain reaction.

Demand forecasting is not a speculative exercise into the unknown. It is essentially a reasonable judgement of future probabilities of the market events based on scientific background. Explain the statement by elaborating different qualitative and quantitative methods of demand forecasting. 

In the U.S., President Biden recently approved a $1.9 trillion stimulus package aimed at getting the 

economy going. U.S. workers who earned less than $ 75 000 a year in 2019 each received a $ 1 400

stimulus check over the past few weeks.

Use the IS-LM-BP model to explain what this can mean for the levels of output/income and interest 

rates in South Africa. Draw the graph and explain the complete chain reaction.

The residents of an agrarian country spend all their income on cauliflower, cucumbers, and carrots. In 2017, they produced 20 heads of cauliflower valued at Rs.200, 5 kgs of cucumbers for Rs.75, and 50 carrots for Rs.80. In 2018, they produced 25 heads of cauliflower for Rs.250, 8 kgs of cucumbers valued at Rs.160, and 50 carrots valued at Rs.150. a. Calculate nominal and real GDPs taking 2018 as the base year. Then calculate GDP-deflator index. b. Assuming that a common person consumes 1 heads of cauliflower, two kg. of cucumbers and 5 carrots, calculate CPI taking 2018 as the base year. c. Calculate inflation rate between 2017-18 measured both from GDP-deflator index and CPI?

In India, the total NPA in 2020 of the banks amounts to ~17 lakhs crores, an increase from ~3 lakh crores in 2013 and negligible amount in 2007, according to Database on Indian Economy by RBI. Such large non-performing assets (NPA) of the banks have declined the assets of the public sector banks considerably since 2007-08. We know that when asset of the banks decline, the risk in the financial sector increase considerably. Moreover, despite substantial cut in policy interest rate by the RBI, commercial banks are reluctant to extend credit. 

How to illustrate the AD-AS model the impact of strike on the general price level and the level of real production and income in the economy

Explain the relationship between the law of diminishing returns and the three stages of production by means of a graph showing total, marginal and average products. (10)

Examine possible causes of the largest ever recorded trade in goods deficit