Macroeconomics Answers

Hula hoop fabricators cost S100 each, Hula Hoop Company trying to decide how many of these machines to buy HHHHC expects to produce the following number of hoops each year for each level of capital stock shown
Number of fabricators
Number of Hoops Produced per Year 0. 0
1 100
2 150
3 180
4 195
5 205
6 210
I- Hula hoop have a real value of $I each, HHHHC has no other costs besides the cost of fabricators
a) Find the expected future marginal product of capital (in terms of dollars) for each level of capital The MPKf for the third fabricator, for example, is the real value of the extra output obtained when the third fabricator is added

The monetary transmission mechanism can be depicted in the form of a graph
or using symbols.
Explain, with the aid of symbols, the monetary transmission mechanism when
interest rates increase
(Note: Prices and wages are variable.) (10)

Prove that labour Is employed up to the point where cost of labour equals marginal value product of labour.

Explain using the AD-AS model how the S.A government can use fiscal policy as a tool to recover from the negative effects of this COVID 19 pandemic

Q1. Suppose that the residents of Vegopia spend all of their income on long beans, bean
sprouts, and carrots. In 2006, they buy 100 strands of long beans for RM200.00, 50 kilos of
beans sprouts for RM75.00, and 500 carrots for RM50.00. In 2007, they buy 75 strands of
long beans for RM225.00, 80 kilos of beans sprouts for RM120.00, and 500 carrots for
RM100.00.
a. Calculate the price of each vegetable in each year.
b. Using 2006 as the base year, calculate the CPI for each year.
c. What is the inflation rate in 2007?

Make use of the Keynesian transmission mechanism and AD/AS analysis to illustrate and explain the effect of an increase in the reserve requirement on the monetary and real sectors of the economy. Make use of graphs in your answer.

The following information is provided about an open economy with a government. Use the
information to answer the questions that follow:
C = 450 + 0.4Y
I = 350
G = 150
X = 70
Z = 35 + 0.1Y
T = 0.15Y
Yf = 1550
Q.2.1 Calculate the level of autonomous spending in this economy. (2)

Q.2.2 Calculate the size of the multiplier
(Note: Round your answer to two decimal places)
(4)
Q.2.3 Calculate the equilibrium level of income
(Hint: use the multiplier method)

How aggregate demand is determined within the classical model ? Effects of change on output and price level due to change in drop of money supply.

Mr Brown has recently been retrenched. The firm he worked for had to retrench
a number of staff due to the downturn in the economy. Mr Brown has not
managed to find alternative employment. We can say he is a what emplyment