Macroeconomics Answers

An economy is forecasted to grow continuously so that the gross national product (GNP), measured in billions of dollars, after t years is given by:

GNP=60e0.03t

After how many years GNP is forecasted to reach RM88 billion?

C: Short-run impacts of fiscal policy The economy of Wonderland has the following characteristics: C d = 100 + 0.5(Y − T) − 1000r I d = 400 − 1500r Md P = 0.5Y − 2000(r + π e ) π e = 0 where Y is output, T is a lump-sum tax, G is government spending, r is the real rate of interest, P is the price level. Questions 19-28 relate to this information.

C2: Fiscal policy in a small open economy with flexible exchange rate. Now suppose Wonderland trades with one large open economy which has a price level of PF or = 200. The behaviour of Wonderland can still be represented by the equations in part C1. Plus its net exports follows NX = 50 − 0.1Y − 50e where e is the real exchange rate. Questions 22-26 relate to this information
Q24. What are the implied levels of nominal exchange rate and net exports?
(a) enom = 21.1; NX = −120
(b) enom = 2; NX = −100
(c) enom = 8; NX = −180
(d) enom = 21.1; NX = −180

How can we use the aggregate demand and aggregate supply model to illustrate the business cycle and How can we use AD-AS model to see effect of various events on real GDP and inflation

Discuss any five threats faced by the pipeline industry. ​​​

Think the manufacturing industry. Elaborate on five ways in which water transport benefits this particular industry.

Elaborate on any 5 current issues that have had impact on the operations of your chosen airline company. ​​​​​​​​

Suppose the Bank Negara Malaysia change the quantity of money in the economy. How does this change affect the interest rate in the long run?