Macroeconomics Answers

Explain the multiplier intuitively. Why is it that an increase in planned
investment of 100 pesos raises equilibrium output by more than 100
pesos?

Impacts of covid-19 is the vulnerability of economies dependent on foreign aid, foreign investment and trade and hence the importance of domestic investment. Discuss the importance of domestic investment for self-sufficiency, economic expansion and employment. You can use any Pacific Island country as a case study. Discuss how the government can promote domestic investment

. The residents of an agrarian country spend all of their income on cauliflower, cucumbers, and carrots. In 2017, they produced 10 heads of cauliflower valued at Rs.200, 5 kgs of cucumbers for Rs.75, and 50 carrots for Rs.50. In 2018, they produced 5 heads of cauliflower for Rs.125, 8 kgs of cucumbers valued at Rs.120, and 50 carrots valued at Rs.100.
Calculate the price of each vegetable in each year. Also calculate nominal GDP and real GDP taking 2018 as the base year and GDP-deflator index.
b. Assuming that a common person consumes 2 heads of cauliflower, one kg. of cucumbers and 10 carrots in each year, calculate CPI taking 2018 as the base year.
c. What is the inflation rate between 2017-18 measured from GDP-deflator index and CPI?

What is the demand for money when interest rates are zero and $Y=80?
b) If $Y= 80, what is the smallest value of money supply at which the interest rate is
zero?
c) Once the interest rate is zero, can the central bank continue to increase money
supply?
d) The United States experienced a long period of zero interest rates after 2009.
Can you find evidence in the text that the money supply continued to increase
over this period?

what happens to nominal interest rates if
inflation falls below what it was expected to be.

In a recession, holding everything else constant, a previously existing budget deficit will automatically, partly because total revenues from taxes.

Identify any two reasons that US dollars would be demanded in South Africa.

Higher interest rates to combat inflation and inflation targets are often criticized of
suppressing development and lowering the quality of life of many people. It is for this
reason that trade unions often oppose to inflation targets and the traditional
measures to achieve this. Are all these arguments true and relevant? Evaluate and
discuss this critically?500-600 words