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Macroeconomics
In a production function with labour and capital, where the marginal product of each factor is zero, at the same time is it true that the two factors are complements in production?
Macroeconomics
Question options:
A contractionary fiscal policy will likely result in (an increase, a decrease, no change)
in net exports and (an increase, a decrease, no change)
in aggregate demand.
Macroeconomics
Q.2.1
The theory of the demand for money is based on John Keynes’ Liquidity Preference Theory.
Give your own detailed explanation of liquidity preference theory and how the demand for money curve is determined. Illustrate your answer graphically .
Note: You should include in your answer a detailed explanation of each component of the demand for money as well as the determinants of these components.
(25)
Q.2.2
Your prescribed text explains that the money stock (M) can be determined endogenouslyorexogenously(i.e.therearetwodifferentapproachesto determining the value of M).
Explain which approach is used in the South African macroeconomy.
The theory of the demand for money is based on John Keynes’ Liquidity Preference Theory.
Give your own detailed explanation of liquidity preference theory and how the demand for money curve is determined. Illustrate your answer graphically .
Note: You should include in your answer a detailed explanation of each component of the demand for money as well as the determinants of these components.
(25)
Q.2.2
Your prescribed text explains that the money stock (M) can be determined endogenouslyorexogenously(i.e.therearetwodifferentapproachesto determining the value of M).
Explain which approach is used in the South African macroeconomy.
Macroeconomics
The essay questions for Assignment 03
(1) Although economists generally agree about the importance of expectations, there are different explanations of the way in which expectations are formed and how to include them in economic analysis. Compare and contrast the way in which Keynes, Friedman and Lucas treated expectations and how they included them in their theories of output and employment. (100)
Prescribed reading
Snowdon and Vane 2005:
Chapter 2, 36 – 70 (especially section 2.8, pages 58 - 65)
Chapter 4, 163 – 187 (especially section 4.3, pages 174 - 187)
Chapter 5, 219 – 271 (especially section 5.3.1, pages 225 - 230 and section 5.4, pages
236 - 242).
E-Reserves:
Keynes 1937:
The Economist, 20/10/1984: Maddock and Carter 1982:
AND
(2) Is there a consensus on key macroeconomic issues? Explain what you think are the main areas of agreement in macroeconomics.
Prescribed reading
Snowdon and Vane 2005: Chapter 12, 695 – 707.
E-Reserves:
Woodford 2009: 267 – 279.
(1) Although economists generally agree about the importance of expectations, there are different explanations of the way in which expectations are formed and how to include them in economic analysis. Compare and contrast the way in which Keynes, Friedman and Lucas treated expectations and how they included them in their theories of output and employment. (100)
Prescribed reading
Snowdon and Vane 2005:
Chapter 2, 36 – 70 (especially section 2.8, pages 58 - 65)
Chapter 4, 163 – 187 (especially section 4.3, pages 174 - 187)
Chapter 5, 219 – 271 (especially section 5.3.1, pages 225 - 230 and section 5.4, pages
236 - 242).
E-Reserves:
Keynes 1937:
The Economist, 20/10/1984: Maddock and Carter 1982:
AND
(2) Is there a consensus on key macroeconomic issues? Explain what you think are the main areas of agreement in macroeconomics.
Prescribed reading
Snowdon and Vane 2005: Chapter 12, 695 – 707.
E-Reserves:
Woodford 2009: 267 – 279.
Macroeconomics
The per capita income in Ghana and Nigeria for the year 2019 are 4605 and 5927 dollars respectively. Discuss the flaws of using these figures to suggest that the welfare of people living in Nigeria is better than those living in Ghana
Macroeconomics
Explaining the role of marginal propensity to consume and marginal propensity to import
in determining the strength of multiplier process.
Macroeconomics
From the following information calculate national income and domestic income.(5)
Items. Amount
I. Wages. 10000
II. Rent. 5000
III. Interest. 400
IV. Dividend. 3000
V. Mixed income. 400
VI. Undistributed profit. 200
VII. Social security contribution. 400
VIII. Corporate profit tax. 400
IX. N.F.I.A. 1000
Items. Amount
I. Wages. 10000
II. Rent. 5000
III. Interest. 400
IV. Dividend. 3000
V. Mixed income. 400
VI. Undistributed profit. 200
VII. Social security contribution. 400
VIII. Corporate profit tax. 400
IX. N.F.I.A. 1000
Macroeconomics
What is meant by central bank? Why is it known as apex body?
Macroeconomics
2. A rational consumer spends all of her income on two goods: Apple and Banana. Suppose the last dollar spent on Apple increased her total utility from 60 utils to 68 utils and the last dollar spent on Banana increased her total utility from 25 utils to 29 utils. If the price of a unit of Apple is 2 Birr, what is the price of a unit of Banana at equilibrium?
Macroeconomics
what is macroeconomics
