Macroeconomics Answers

Suppose that, within the Neoclassical - Keynesian Synthesis Model, the economy is initially
suffering from unemployment. The government knows that in the long-run the economy will reach
full employment level through its own dynamics.
However the government would not like to wait for a long time for this adjustment process to
complete itself and wants to make this process shorter.
Yet the government would also like keep the price level and the rate of interest at their present level.
Could the government achieve these three goals? Why or why not? Explain clearly.

suppose that consumers in turkey become more pessimistic about the health of thr turkish economy due to the bad news from europe and they started to expect a decline in their future income using AD-AS model what will happen to the output and price level in the short run? does the economy enter to a burst or boom period.

impact of increase in price level on value of assets,price of imported foreign goods,price of substitute goods and expectation of future prices?

Puan Siti Lela is a Malaysian and plans to visit Paris or New York to buy a Louis
Vuitton (LV) bag that cost uro $30,000 in Paris and USD28,000 in New York.
Assuming no cost in transfers or transportation. Which is a cheaper destination for
Puan Siti Lela to buy her LV handbag by showing your conversion calculation? How
many uros or USD does Puan Siti Lela need to pay for the LV handbag?

Indicated which two instruments are used by government to influence the spending within the South Africa economy, use examples to explain how each instrument is used.?

Suppose you borrow Rs.800000 in student loan @8% p.a. the interest rate in 2019:-
(i) How much will you owe after 10 years of accumulating debt?
(ii) If inflation is 6% per year over this period, how much will you owe after 10 years in real 2019 Rupees?
(iii) Who is the loser in this scenario, you or the Bank?

The economy is at full employment. Now the government wants to change the composition of demand toward investment and away from consumption without, however, allowing aggregate demand to go beyond employment.
(i) What is the required policy mix?
(ii) Use an IS-LM diagram to show your policy proposal.

Explain in brief how and why the income and interest sensitivities of the demand for real balances affect the slope of the LM Curve.

What is the full-employment budget surplus and why might it be a more useful measure than the actual or unadjusted budget surplus?