Macroeconomics Answers

What is the economic term for the macroeconomic situation where Y < Y'

During World War II, both Germany and England had plans for a paper weapon: they each printed the other’s currency, with the intention of dropping large quantities by airplane. Why might this have been an effective weapon?

Imagine that the society has two political parties, called the Helang ( who want a strong military) ans the merpati ( who want a smaller military). Show a point in your production possibilities frontier that the Helang might choose a point the Merpati might choose

Suppose that the Indonesian Parlement passes legislation making it more difficult for firms to fire workers. (An example is a law requiring severance pay for fired workers.) If this legislation reduces the rate of job separation without affecting the rate of job finding, how would the natural rate of unemployment change? Do you think it is plausible that the legislation would not affect the rate of job finding? Why or why not?

2. During World War II, both Germany and England had plans for a paper weapon: they each printed the other’s currency, with the intention of dropping large quantities by airplane. Why might this have been an effective weapon?

1. If a 10-percent increase in both capital and labor causes output to increase by less than 10 percent, the production function is said to exhibit decreasing returns to scale. If it causes output to increase by more than 10 percent, theproduction function is said to exhibit increasing returns to scale. Why might a production function exhibit decreasing or increasing returns to scale?

if a 10-percent increase in both capital and labor causes output to increase by less than 10 percent, the production function is said to exhibit decreasing returns to scale. if it causes output to increase by more than 10 percent, the production function is said to exhibit increasing return to scale. why might a production function exhibit decreasing or increasing returns to scale?

Gdp example

Proof the relationship between marginal revenue and elasticity and show under what conditions marginal revenue will be positive, negative and zero?

3. The competitive market demand and supply for TV in USA are; Qd=100–20P and Qs=20+20P.
a.Sketch the demand and supply function for the STV industry.
b.Find the consumer surplus and producer surplus.
c.If the free market price is too high for the ordinary American to pay. What would happen if they set a price ceiling at $1.5.
d.If the free market price is too low to enable producers to earn a fair rate of return. What would happen if the government agrees with him and buys S TV from suppliers at a price floor of $4?
e.Find the cost of the price floor in (e) above?
f.If income of consumers rises by $10. Find the new equilibrium price and quantity?
g.If a fall in wages affects the market supply curve from Q=2+2P to Q=6+2P, how would that affect the market-clearing price and quantity?
h.find the price elasticity of demand and show whether the firm should increase price or reduce price to maximize revenue? Interpret your answer in (i) above.