Macroeconomics Answers

What is the difference between intermediate and final goods? Why is the distinction between intermediate and final goods important for measuring GDP?

In 2017-18, the Pakistan Bureau of Statistics announced that of all adult Pakistanis, 59,786,200 were employed, 3,613,800 were unemployed, and 58,800,000 were not in the labor force. Use this information to calculate the unemployment rate

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In 2019, 200 KGs of oranges are produced at Rs.40/kg, 500 KGs of apples are produced at 120/kg, and 200 Glasses of orange juice are produced at Rs.150/glass.

In 2020, 220 KGs of oranges are produced at Rs.50/kg, 450 KGs of apples are produced at 140/kg, and 230 glasses of orange juice are produced at Rs.135/glass.

Assuming 2019 is the base year; calculate the nominal GDP in 2019

How much did the government of BC spend on health care during 2002-03

If the demand function faced by a firm is:

Q = 90 – 2P

TC = 2 + 57Q – 8Q² + Q³

Determine the level of output at which the firm maximizes the profit.

Determine the best level of output for the above question by the MR and MC approach.

1.a)Draw an A.D/A.S graph showing inflationary gap.

b)Draw an A.D/A.S graph showing a recessionary gap.

c)Using the same graphs you have drawn in A and B, show what the long run equilibrium position would be in each case if the government did nothing(i.e.,let the economy self-adjust)

2.Explain how savings function is derived from the consumption function, and how the saving schedule and graph of the saving function are constructed

Starting from general equilibrium, what would be the long-run effects of a simultaneous reduction in government purchases (G↓) and increase in the money supply (M↑) designed to leave real GDP the same on each of the following economic variables? For each, you should write one of the following responses:  Up (U), Down (D), orSame (S)

1. The real interest rate (r)
2. Investment (I)
3. Consumption (C)
4. The price level (P)
5. Budget deficit (G – T)
6. Future standard of living (i.e., future per capita consumption)

Starting from general equilibrium, what would be the long-run effects of a simultaneous reduction in personal taxes (T↓), increased government purchases (G↑), and revenue-neutral reduction in the capital tax rate (τ↓) on

1. Real GDP (Y)
2. The real interest rate (r)
3. Investment (I)
4. Consumption (C) (recall, the effect of disposable income exceeds the small effect of the interest rate)
5. The price level (P)
6. Budget deficit (G – T)
7. The nominal exchange rate (e_nom)
8. Exports (EX)
9. Imports (IM)
10. Net exports (NX)

1.  Which of the following headlines is more closely

related to what microeconomists study than to what macroeconomists study?

a. Unemployment rate falls from 7.5 percent to 7.3 percent. b. Real GDP

falls by 0.4 percent in the third quarter.

c. Inflation was 2.4 percent last year.

d. The price of gasoline rises due to rising oil prices.

Macroeconomics equips you with the necessary skills to become economic policy makers. As economic policy makers, you need to understand macroeconomic fluctuations and the roles of monetary and fiscal policies in managing the economy.

You are required to select an article from printed or online media on any stricken economy.

The article must have been written after June 1, 2019. A copy of the article showing date and source is to be attached with the assignment as appendix.

You are to critically apply Keynesian economics to fix the economic problem.

Diagram must be well labeled.

The assignment should include:

• Why were Keynesian ideas revolutionary?

• What economic problems in your news article that require government intervention?

• How the economic problems would be approached by Keynesian economists?

• Do you have faith that this intervention will be effective?

• How have the economists’ views on Keynesian economics changed over time?

• Is Keynesian economics dead today?