Macroeconomics Answers

Using the labor market and production function, show graphically, and state what happens to wages, output, and employment if the country is given a large amount of capital.

Consider an economy described by the following equations.          

Y = C + I + G

G = 1, 200              T = 1,000

C = 475 + 0.8 (Y − T)  I = 1, 000 − 100 r.

MD = 2000 - 8000r

MS = 2500

i.   Find the equilibrium interest rate and equilibrium output.

ii.  Suppose that G decreases to 1, 000, now find the new equilibrium interest rate

and output.

Given the utility function, U=∂x+ßy, determine the marginal rate of substitution

The planned expenditure crosses the 45° degree line is the equilibrium condition of the Keynesian

cross model. Within the situation, briefly explain the case of planned expenditure is less than the actual expenditures.

One day, barry the barber,inc., collects $400 for haircuts. Over this day, his equipment depreciates in value by $50. Of the remaining $350, barty sends $30 to the government to the taxes, takes home $220 in wages, and retains $100 in his business to add new equipment in the future. From the $220 that barry takes home, he pays $70 in income taxes. Based on this information, compute barry's contributiin to the following measures if income.

a. Gross domestic ptoduct

b. Net national product

c. National income

d. Personal income

e. Disposable personal income

Based on Keynesian analysis, aggregate expenditure consist of C, I, G and net export. As an economist, present your critical arguments on how strategies and recommendations in the 2021 budget can generate economic growth and social well-being. Explain by using graphs

Elaborate on five current issues that have had an impact on impact the operations of Mango airline

Consider a firm in a perfectly competitive market which chooses an input 𝑥 to maximize its profit 𝜋 = 100𝑓(𝑥) − 𝑤𝑥. 

i) Specify the first order condition for the profit maximization problem. (4 marks) ii) Suppose there is a differentiable function 𝑥(𝑤)that satisfies the implicit function in part (i) above. Using the chain rule, find 𝑥′(𝑤). (4 marks) iii) Suggest conditions on the function 𝑓(𝑥) so that 𝑥 ′(𝑤) < 0

The long run is period of time

1. Suppose that labor supply is given by w=2N+3 and labor demand is given by w =-2N+23. What are the equilibrium wage (w: the price of a worker) and the number of workers (N: the number of workers)? What is the Employee (they are the producers of labor) and the Employer (they are the consumers of labor) Surpluses?