Macroeconomics Answers

How increase the economic growth?

Using appropriate economic variables give two examples each of simple theoretical model and dynamic stochastic general equilibrium models

1. What effect does a $1 specific tax have on equilibrium price and quantity, and what is the incidence on consumers, if
2. The demand curve is perfectly inelastic?
3. The demand curve is perfectly elastic? 
4. The supply curve is perfectly inelastic?
5. The supply curve is perfectly elastic?

Use graphs and math to explain your answers. 

MR=2c^0.5Q find the total revenue

In India how much does our federal or provincial/state governments contribute to education programs? List and explain the programs.

A sudden increase in the number of tourists from South Africa to US will lead to

Why would smaller firms be content to let a large firm practice dominant firm price leadership in an industry.

The demand equation for a product is given by:

Where I is income and P is price.

Write an equation for the point price elasticity. For what values of I and P is demand unitary elastic? Explain. (4 Marks)

Write an equation for the point income elasticity. For what values of I and P is the good a necessity? Explain. (4 Marks)

Given the total cost function for Mizoram Enterprises:

Determine the average cost function and the rate of output that will minimize average cost. (3 Marks)

Determine the marginal cost function and rate of output that will minimize marginal cost. (3 Marks)

At what rate of output does average cost equal marginal cost.

1.              Consider the stock of Aviva PLC. The beta of the stock is 1.25. The earnings per share (EPS) in the coming year is 55p. The expected Return on Equity (ROE) is 11%. The expected return on the market portfolio is 9%. The risk-free rate is 5%. The dividend pay-out ratio is 50%. What is the fair price of Aviva stock? 

What does it mean by “convergence” among countries? On what conditions do countries converge at their GDP level? Please explain using the Solow-growth model.

The potential GDP and actual GDP of an economy are $25000 and $20000 respectively. What is the GDP gap? If the natural rate of unemployment is 5%, what is the actual rate of unemployment?