Macroeconomics Answers

A tax on crude oil would raise the cost of the primary resource used in the production of gasoline. A proponent of such a tax has claimed that it will not raise the price of gasoline using the following argument. While the price of gasoline may rise initially, that price increase will cause the demand for gasoline to decrease, which will push the price back down. Is this reasoning correct? Explain.

State whether each of following statements is “True” or “False” (Explain why if the
statement is false.)

When the GDP growth rate is 3% and its population growth is 4%, its GDP
per capita is higher

State whether each of following statements is “True” or “False” (Explain why if the
statement is false.)

Businessmen can make more profit by selling their goods in a country with a
higher GDP growth rate than a country with a lower GDP growth rate.

Expenditure as a percentage of GDP
U.S. Country X
Personal consumption expenditures 67.86% 50%
Gross private domestic investment 17.50% 35%
Government consumption expenditures and gross investment
17.49% 10%
Exports of Goods and Services 11.73% 135%
Imports of Goods and Services 14.58% 130%
Net exports of Goods and Services -2.85% 5%

Businessmen concern about the economic environment of a country and its
business opportunities.
a. Which country is more likely to follow the principle of “Big Market, Small
Government”? Explain your answer.

How would the unemployment rate be affected in each of the following case?
Explain your answers by referring to the specific type of unemployment (frictional,
structural or cyclical unemployment) affected in each of the case.

i. A global pandemic badly hits Country X.
ii. Some textile workers in Country X become jobless due to more imports of
textile products from Country Y. It is expected that after receiving training,
these workers can all find jobs in the retail sector.

what could make the Canadian economy operate at an above full-employment level macroeconomic equilibrium (i.e. an equilibrium that is inflationary)? What can policy analysts do to restore the economy back to its full employment level?

A vertical long-run aggregate supply curve indicates that

Discuss and comment on the effect of climate change on food security in South Africa

If despositor puts $100 in a bank account that’s earns 4 percent interest compounded annually how much will be in the account after 5 years?