Macroeconomics Answers

Acme Tobacco is currently selling 5,000 pounds of pipe tobacco per year. Due to competitive pressures, the average price of a pipe declines from $15 to $12. As a result , the demand for Acme pipe tobacco increases to 6,000 pounds per year.

a) what is the cross elasticity of demand for pipes and pipe tobacco?

b) Assuming that the cross elasticity does not change, at what price of pipes would the demand for pipe tobacco be 3,000 pounds per year? Use $15 as the initial price of a pipe.

The inhabitants of the small country Zumenia mainly uses potatoes to make chips.Therefore they need oil to fry chips.Explain with the aid of diagrams how the equilibrium price and quantity oil will be affected when price of potatoes decrease

2.1 Consider a closed economy that is described by the following model:

C = 280m + 0.72Y

Where:

C = Consumption Y = Income

I = 150m I = Investment

G = 300m G = Government spending

T = 22% t = Tax rate.

2.1.1 Calculate the multiplier. (3)

2.1.2 Calculate the total autonomous spending. (2)

2.1.3 Calculate equilibrium Income(2)

2.1.4 Calculate the Level of savings at equilibrium(3)

2.1.5 Calculate the amount of tax collected at equilibrium(3)

Employment equity is notion that

When an employer lists a job opening, they receive hundreds of applications. Eightfold is a new product that uses artificial intelligence (AI) to scan resumes and quickly and accurately identify the applicants who are the best fit for the job. An economist who studied the use of AI in hiring said, “You get the more nontraditional, equally qualified, equally high-performing people, but the employer doesn’t seem to have to compete for them as much.” What effect might the use of AI have on the slope of the Phillips curve and why?

How can policy makers (government) use the neoclassical model of production and consumption to inform policy decisions in the economy?

Discuss how these maritime transport service providers interact jointly to form a viable maritime transport chain.

Discuss clearly macroeconomic equilibrium condition by using an appropriate graph and both aggregate demand and aggregate supply equation?