Macroeconomics Answers

QUESTION
Draw and explain the effect on desired capital stock, when expected future MPK increase.

what is real gdp

Assume that an economy is initially operating at the natural rate of output (full employment
output). Use the AD-AS model to illustrate graphically the effects on price and output of an
increase in government spending. Explain your assumptions with respect to the range of
aggregate supply of your analysis.

give three reasons why national income account are not very useful in making comparisons of living standards between countries.

How do social infrastructures (i.e. Education, healthcare, public space etc.) affect output?

Is too much or too little real output (output out of equilibrium) desirable? Why or why not?

How can it be that a country that is less productive at producing all goods can still benefit from trade?.Explain with reasons.

Assume that the world consists of 2 countries ,Ghana and Nigeria and these countries do not read with each other and there are only 2 goods In this world-Gold and Crude oil.Assume that Ghana needs 12 workers to produce a unit of Gold and 6 workers to produce a barrel of Crude oil.Nigeria needs 2 workers to produce unit of Gold and 4 workers to produce a barrel of Crude oil. Assume that both countries have 48 workers each.Usingbthe Ricardian model,answer this.
Assume the countries are now allowed to trade with each other.Assume that the equilibrium with trade is such that one country fully specializes in the production of Gold and the other country in Crude oil,Which country specializes in which good?

Suppose the market for good X has an effective price floor. Then market supply suddenly falls. What impact does this have on the dead weight loss (social cost) caused by the price floor in the market, ceteris paribus?