Macroeconomics Answers

 Use IS-LM diagram to explain what happens to the effectiveness of fiscal policy 

when interest elasticity of demand for money is zero, i.e. c2=O.

You are employed as a project manager for an international construction company. The director is in Australia and claims that the senior managers reporting is not up to standard and they don't have time to report

The demand for Clean-Well company’s product charges P30 per liter, how much revenue the

company will earn, and how much consumer surplus will buyers benefit. Exactly, how much will 

buyers willing to pay for a bottle with 30 liters?

The current price of stock X and Y are $23.50 and $27.25, respectively. Assume that your required return on investment in equity remains constant at 5%. The expected dividend return for both stocks are as follows:

StockDividend paid

at the end of 

year 1Dividend paid

at the end of 

year 2Dividend paid

at the end of 

year 3X$1.30$1.70$1.55Y$1.80$1.85$2.10

If your student number is below 3000000, then complete the following question for Stock X.

If your student number is above 3000000, then complete the 

Suppose a bank that is subject to a 10 percent required reserve ratio receives a new deposit of $5,000. The bank’s required reserves would increase by ______.

a.      $50

b.     $100

c.      $500

d.     $4,500

For each of the following statements explain if they are true or false:

a. As the dollar appreciates more Americans will travel abroad.

b. As the dollar appreciates American imports will fall.

c. As the dollar appreciates Disney World will see more foreign tourists.

d. As the dollar appreciates agains the Euro, European exporters of cars will benefit.

Ch19-3 - Use the extreme points from a production possibilities schedule below to draw two straight line production possibilities curves for two nations

Q.2.3 The concentration of purchases from one or a limited number of suppliers may be beneficial to the firm under certain circumstances. List any five of these circumstances and discuss how Dell benefits by using Indian call centres

The market for ride-hailing services before and after the imposition of a $2.75-per-ride tax shows that the tax shifts the supply curve up by $2.75, increasing the price paid by the consumer from $20 to $21.75 and decreasing the price received by ride-hailing companies from $20 to $19. The quantity of rides provided also falls from 500,000 to 425,000.

Thinking Critically

1. The figure shows the market for rides before and after the imposition of a $2.75-per-ride tax. How can we use the figure to measure the effect the tax has on consumers and on Uber and Lyft? Redraw the graph and show the areas representing the losses to consumers and to firms resulting from the implementation of the tax.
2. In New York City, drivers for ride-hailing services are now guaranteed a minimum wage. Draw a graph to show the economic effect of this price floor in the market for these drivers. On the graph, identify the minimum wage, the deadweight loss, and the number of surplus drivers that result from the minimum wage.

How monetary and fiscal policy shift aggregate demand curve?