Macroeconomics Answers

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

Explain tariffs as a method of import substitution

There are three possible explanations for a downward sloping aggregate demand curve. Which of the following is not one of those three explanations?

Select one:

a. The wealth effect.

b. The catch up effect.

c. The real exchange rate effect.

d. The interest rate effect.

Question1. Given bellow are the cost and revenue functions of a perfect competitive firm:

TC= 20+10Q    TR= 40Q-5Q²

Calculate:

a). Profit maximizing level of output

b) Total profit

Question 2. Determine shutdown price and output for the following total cost and total revenue functions:

TR=12Q   TC=1/3Q³-9/2Q²+20Q+50

a). Find MR

b). MC Function

c). The quantity produced at shutdown point

d). The minimum price a firm will sell

Q(1). A manufacturer's total cost consist of fixed overhead of $200 plus production cost of $50 per unit .Express the total cost as a function of the number of units produced and draw the graph.

Q(2). The Green-belt Company determines that the cost of manufacturing men's belts is $2 each plus $30p per day in fixed costs. The company sells the belts for $ 3each. What is the break-even point?

Suppose that a company has determined that the cost of producing x items is

*500+140x and that the price it should charge for one item is P= 200-x

(A). Find the cost of function.

(B). Find the revenue function.

( C).Find the profit function.

( D). Find the break even point.