Macroeconomics Answers

why do fast growth lead to high welfare? state reasons why.

Improvements in total factor productivity (TFP) - if it helps, think of TFP this as technological advancement - are also expected to suffer because of the pandemic. According to a NBER working paper, COVID-19 has lowered the TFP in the UK private sector by up to 5 percent.

a.     Describe the effect of this fall in TFP on the UK output/GDP with the help of a diagram.

According to an ILO quarterly update on the global labor market, workplace closures and job losses due to the COVID-19 pandemic in 2020 has led to a loss of 8.8 percent of global working-hours, which is equivalent to the loss of 255 million full-time jobs.

a.     Explain the effects of this loss in labor-hour on the global output/GDP in 2020, with the aid of a potential GDP and labor market diagram.

The same update goes on to say that the global labor income in 2020 declined by 8.3 percent, equivalent to US$3.7 trillion.

b.     Can you explain why the loss in labor income (8.3 percent) was lower than the loss in labor working-hours (8.8 percent)? Use diagrams to support your argument. (Hint: think of labor productivity)

According to an ILO quarterly update on the global labor market, workplace closures and job losses due to the COVID-19 pandemic in 2020 has led to a loss of 8.8 percent of global working-hours, which is equivalent to the loss of 255 million full-time jobs. 

a. Explain the effects of this loss in labor-hour on the global output/GDP in 2020, with the aid of a potential GDP and labor market diagram.

The same update goes on to say that the global labor income in 2020 declined by 8.3 percent, equivalent to US$3.7 trillion.

b. Can you explain why the loss in labor income (8.3 percent) was lower than the loss in labor working-hours (8.8 percent)? Use diagrams to support your argument. (Hint: think of labor productivity)

n 1980, major US banks offered interest rates as high as 15% per year on savings accounts offered to consumers. By 2000, that rate had dropped to 5% per year. On the other hand, in 1980 the US inflation rate was about 14% per year, whereas in 2000, the US inflation rate was only 3% per year. a. What was the real interest rate in 1980? What was the real interest rate in 2000?

a) What was the real interest rate in 1980? What was the real interest rate in 2000?

b) What was the nominal interest rate in 1980? What was the nominal interest rate in 2000?

c) For a consumer, which year – 1980 or 2000 – was a better time to put money in the bank?

Can you explain why the loss in labor income (8.3 percent) was lower than the loss in labor working-hours (8.8 percent)? Use diagrams to support your argument. (Hint: think of labor productivity)

The price of pens today is N10, and the quantity demanded is 1m. Next year the price rises to N11 and the quantity demanded falls to 950,000. What is the price elasticity of demand and what type of elasticity is this? *

According to an ILO quarterly update on the global labor market, workplace closures and job losses due to the COVID-19 pandemic in 2020 has led to a loss of 8.8 percent of global working-hours, which is equivalent to the loss of 255 million full-time jobs.

a. Explain the effects of this loss in labor-hour on the global output/GDP in 2020, with the aid of a potential GDP and labor market diagram.

The same update goes on to say that the global labor income in 2020 declined by 8.3 percent, equivalent to US$3.7 trillion.

b. Can you explain why the loss in labor income (8.3 percent) was lower than the loss in labor working-hours (8.8 percent)? Use diagrams to support your argument. (Hint: think of labor productivity)

On the basis of the recommendations of an 11-member committee, a decision was taken to offer tax benefit to the active pharmaceutical ingredients (API) and laboratory-reagents manufacturers.

The policy offers the API and laboratory-reagents manufacturers in the country corporate tax holiday facility until 2032. This includes exemption from paying advance income tax (AIT), value-added tax, and VAT deduction at source on the purchase and sales of raw materials and spare parts until 2032. The manufacturers will also get duty-free facility for import and priority for land allocation in the government's special economic zones and export processing zones.

API are the main raw materials used in the production of most drugs and policies such as this will increase the profitably of investment in current and future periods.

Based on the information above, answer the following questions

a. How is the industrial investment affected in industries that receive tax credit incentives?

If you are a business in Ontario, it is possible to get a grant of up to $30,000 or 50% of costs related to growing your export market. For example, attending international trade shows, or creating a marketing plan for a new market. This funding comes from an annually reviewed and funded program to support exporters. Do you think this is a fair or an unfair trading practice? Explain.