Macroeconomics Answers

Derivation of aggregate demand curve using IS-LM model .

Explain philips curve and its policy implications .

What are the goals of fiscal policy?

if Pakistan ban imports of laptop what happens in savings, investment, trade balance, interest rate and exchange rate?

briefly explain Catastrophe Theory of Economic Fluctuation. You must explain each phase, its roots and recovery. B) Are there any policy implications of the theory? C) Critically evaluate the theory you just explained in (a) above

Suppose that there were markets for two related goods. For Good 1, Demand is given by
Q1=198 -3P1 – 3P2 and Supply is given by Q1 = 4P1 -15. For Good 2, Demand is given by
Q2 = 294 – 4P2 – 2P1 and Supply given by Q2 = 4P2 – 20. From the information given,
determine the equilibrium price for Good 1 and Good 2.

If the central bank does not use any accommodating policy, what will happen to
the price level in the long run? Explain your answer

Suppose the National Institutes of Health publishes a study finding that coffee drinking reduces the probability of getting colon cancer. How do you imagine this will affect the market for coffee? Why? Which determinant of demand or supply is being affected? Show graphically with before- and after-curves on the same axes. How will this change the equilibrium price and quantity of coffee? Explain your reasoning.
Answer in 1000 words atleast