Macroeconomics Answers

Given the utility function:
U = X 3/4 . Y1/4
Estimate the demand functions of commodity X and commodity Y using Lagrange method, if it is given that price of X is Px and price of Y is Py and Income is M.

Discuss the satisfaction-progression and frustration -regression principles from ERG theory.Give examples of the functioning of each principle

The per capital income in Ghana and Nigeria for the year 2019 are 4605 and5927 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

Critically analyse how an increase in wages can lead to cost- push inflation as well as demand-pull inflation

Explain using the IS-LM and AD-AS models how Fiscal Policy and Monetary Policy can be used during covid19 to stabilize the economy.

The table below shows 2018 national income figures of a hypothetical economy. All figures in the table are in billion Ghana cedis. Use the information in the table to answer the questions that follows:
Employees compensation 100
Net interest. 85.2
Indirect taxes. 40.1
Subsidies. 1.2
Rental income 20
Corporate profits. 42
Fringe benefits. 3.5
Transfer payments. 0.4
Depreciation. 4.2
Net property income from abroad. -5.6
Direct taxes. 25.6
Social security contribution 12.1
a) calculate Net income, Net national product, GNP, PI, GDP
b) suppose in 2018, the population and price index of the hypothetical economy is 30,000,000 and 202, calculate GDP at constant prices and per capita income of the hypothetical economy.

The exchange rate of US Dollar to Kenya shilling has moved from 104 in March to 108 (Kenya shilling to one dollar) as of now. Discuss the factors that may have contributed to that movement.