Macroeconomics Answers

 Assume that country S and T hire 2,000 unit of labour. Each country use 50% from the labour for production of agriculture goods (A) and manufacturing goods (M). Total production as shown in the following table: Country/Goods(milli on unit) Good A Good M Country S 100 400 Country T 200 500 

1) Assume that both countries agree to trade after specialization in production by using a comparative advantage. Ratio of exchange is 1A: 40M. After trade country S will use 100 unit of good A. Using this information show in the table the effect after trade for the consumption of good A and M in country S and T. 

What is the purpose of FAFSA

Consumers consumption (C) = 160$

Investment (I) = 40$

Government expenditure (G) = 30$

Export (X) = 20$

Import (M) = 10$

Indirect taxes = 25$

Subsidies = 118$

GDP Market Price = 160$ + 40$ + 30$ + (20$ - 10$) = 230$

= 230$ + 10$ = 240$

GDP Factor Cost = 240$ - 25$ + 118$ = 333$

it my answer correct ? If wrong please help me to correct sorry to bother you thank you so much.

 If the government increases government expenditure, but keeps the tax rate constant, consumption spending will __________, total tax revenues will __________, and investment spending will __________.

According to the assumptions of the simple Keynesian model, the economy only consists of the two sectors: households and firms.

There is ______________ relationship between government spending and total income.

A) a positive

B) no systematic

C) a negative

D) none of the above

1.7 In the simple Keynesian model, the following is true about investment. A) As income increases, investment also increases.

B) There is a negative relationship between investment and income.

C) Investment is autonomous and is illustrated by a horizontal line.

D) Investment is positively related to the interest rate.

Suppose the gold price rises in SA using a graph, explain how this rise will affect the exchange rate between SA rand and the US dollar, ceteris paribus.(10)

Searches related to Given that a monetarist predicts velocity to be 5, graph the aggregate demand curve that results if the money supply is Kes 400 billion. If the money supply falls to Kes 50 billion. Explain the effect of this fall on the position of the aggregate demand curve.

With the aid of a diagram, show the deadweight cost of a monopoly. Explain

the policy implications for government.

If domestic price level decreases and foreign price level remains same, how it would affect the nominal and real exchange rate? Illustrate through an example. 2. Given the following functions: C=250+0.75(Y-T), I=150, G=250, T=200, if government increases its expenditures by 60 and finances half of it through taxes, by how much would the output change? 3. Consider a situation in which yield of tomatoes in a given year is destroyed by some pest attack on crop due to which price of tomatoes is being affected. Explain how would GDP deflator and CPI account for the price of tomatoes? 4. If taxes imposed by the government are assumed to increase, how would it affect the output and employment under Classical and Keynesian framework? 5. Show the adjustment of economy from short run to long run, if initially economy is operating at a more than full employment level of output. 6. If US government introduces investment tax credit scheme for the investors, how would it affect the domestic US economy and its trade partner like Pakistan?