Macroeconomics Answers

Demand schedules are given as follow
Derick: Qd=100-0.5p
Charles:Qd= 50-0.2p

What is the market demand schedule?

Market for good X is characterized by these demand and supply schedule: p=a-bQd,
P=c-dQs ; a,b, c, and d are all positive constants

Repo rate is the rate of interest paid by

6. Assuming a classical model, government decides to increase the marginal income tax rate (PAYE). How would this change affect output, employment, and the price level? In your answer consider two cases, case one in which the increased revenue produced by the tax increase results in a decline in bond sales to the public, and a second case when it results in lower money creation. [10]

In the market for used cars, the average price is currently $85,000 per car, and there is a demand of 450 customers at that price. As the price falls to the equilibrium price of $60,000, demand rises to 700 customers. The price continued to fall, and at a price of $52,000, the demand fell to 600 customers. Kindly explain why the demand follows the law of demand from the price change of $85,000 to $60,000 and why it doesn't follow the law of demand for the price change of $60,000 to $52,000, making sure to make mention to the quality of the cars.

A monetary system where exchange rates are freely determined in response to the demand & supply for foreign currencies my be best described as a ?

What is a multiplier? What purpose does it serve in policy making?

How do we transition from the Keynesian cross model to the IS curve model? How are
the two connected? Explain.

What is the IS curve? Is it related to Aggregate Demand? Explain