Macroeconomics Answers

How do we measure unemployment

An old corolla emits a lot of carbon such that it contaminates the entire compound. Discuss the two depravities discussed above

1. Consider the following aggregate production function: Y=100×√L×√K, where A is the total factor productivity, K is the amount of capital in the economy, L is the labour force, and Y is the GDP. Is this aggregate production function exhibiting the constant returns to scale and diminishing marginal product of capital? Explain how you know
2. In 1867, the government employed 6% of the country’s workers. Since then, the country’s labour force has been growing an average 0.5% a year while the government’s employment has been growing an average 1% a year. What is the share of the government employment in the country’s labour force by 2011?
3. Investopedia.com explains that “Bitcoin is a digital or virtual currency created in 2009.” Is Bitcoin money?

The NEWS magazine uses the price of a Mercedes Benz A-class to determine whether a currency
is undervalued or overvalued. In July 2019, the price of Mercedes Benz was $55 thousand in New
York, 390 thousand yuan in Beijing, and 66.5 thousand Swiss francs in Geneva. The exchanges
rates were 6.79 yuan per U.S. dollar and 0.96 Swiss francs per U.S. dollar.

a. Does the purchasing power parity hold? Was yuan undervalued or overvalued relative US
dollar? Explain your answer and show the calculation.
(2 marks)
b. Do you think the price of a representativeness car, Mercedes Benz in different countries
provides a valid test of purchasing power parity?
(2 marks)

What does "global stake in economics of India" means ??

Suppose that when everyone wakes up tomorrow, they discover that the
government has given them an additional amount of money equal to the amount
they already had. Explain what effect this doubling of the money supply will
likely have on the following:
a. The total amount spent on goods and services
b. The quantity of goods and services purchased if prices are sticky
c. The prices of goods and services if prices can adjust

Suppose that median disposable income measured
in current dollars is $10,000 and $20,000 for 1978
and 1988, respectively. The economy's price
index is 100 in the base year of 1978 and 250 in
1988. Which of the following is true?
(A) Inflation, as measured by the price index, rose
250 percent over the period.
(B) Nominal median disposable income rose 50
percent over the period.
(C) Real median disposable income rose 250
percent over the period.
(D) Real median disposable income fell 50 percent
over the period.
(E) The $10,000 in 1978, measured in 1988
dollars, is equivalent to $25,000

Consider the following aggregate production function: Y=100×√L×√K, where A is the total factor productivity, K is the amount of capital in the economy, L is the labour force, and Y is the GDP. a. Is this aggregate production function exhibiting the constant returns to scale? Explain how you know. b. Is this aggregate production function exhibiting the diminishing marginal product of capital? Explain how you know.

Investopedia.com explains that “Bitcoin is a digital or virtual currency created in 2009.” Is Bitcoin money? Explain