Macroeconomics Answers

Q.1.1 An increase in the budget deficit is the result of:
(a) Expansionary monetary policy;
(b) Contractionary monetary policy;
(c) Expansionary fiscal policy;
(d) Contractionary fiscal policy.

Q.1.2 Company tax is a:

(a) Progressive, direct tax;
(b) Progressive, indirect tax;
(c) Proportional direct tax;
(d) Regressive indirect tax.

The three basic economic questions from the stand point of a Country and of a Company

a. Suppose the number of employed people in Pakistan is 20.5 million. The unemployment rate in this economy is 8.8 percent, and the labor force participation rate is 65 percent. (1.5 Marks)
i. What is the size of the labor force and working-age population?
ii. How many people are unemployed?

Which one of the following is most likely to decrease the demand for US dollars on the South African foreign exchange market?
A. A recession in South Africa
B. An increase in the number of South African tourists visiting the United States
C. A rise in the interest rates in the United States
D. A decrease in the gold price

Do you think it is right thing to do to charge industries that pollute the air explain

The lockdown around the world has caused the rapid growth in the electronic market as people have shifted from conventional methods to the new methods for imparting knowledge and staying connected. If demand and supply function are given as:
Qd= 65 – 10P Qs= -35 + 15P
a. Find the equilibrium price and quantity and show it on labeled D/S diagram.
b. How do you interpret market equilibrium: (i) if P= Rs.6? (ii) if P=2?
c. Show on the Demand-Supply diagram in (a), the graphical interpretation of your answer of (b).

Draw a demand and supply curve for British pounds (on the vertical axis plot rand per British pound). (5). What factors are likely to cause an increase in the demand for British pounds (in exchange for South African Rands)?2. How can this be illustrated in the diagram you have drawn? Does this represent an appreciation or depreciation of the South African rand relative to the British pound?3.

Explain, using examples, the difference between the following:

a. Market Process and Traditional Process
b. The three basic economic questions from the stand point of a Country and of a Company
c. Economic goals and Non-economic goals
d. Explicit Costs and Implicit Costs
e. Determinants of Demand and Determinants of Supply

Draw a graph that represent a production activity of a coal mine in Mpumalanga,and where the air pollution is analysed in the form of coal dust.use hypothetical figures to explain your graph

Draw a graph that represent a production activity of a coal mine in Mpumalanga,and where the air pollution is analysed in the form of coal dust.use hypothetical figures to explain