Macroeconomics Answers

“Heckscher-Ohlin Theory begins where Comparative advantage theory ends.”
Discuss.

How do i determine the equilibrium level of income using the income expenditure approach and savings investmet approach given the following information;

C=50+7/10, I=50, T=25, G=26, X=17, M=2+1/10Y

1.

The COVID 19 pandemic and the associated lockdown has led to an increase in aggregate prices of food in Ghana. Using your understanding of (a) the fundamental causes of inflation, (b) the aggregate demand and aggregate supply curve (LR and SR) shifts, provide your sound reasoning for why this aggregate food price increases could have happened in this season.


4.

a. The government of Ghana has gradually outlined measures to ease an opening of the economy. The government is eager to see the economy bounce back. Suppose the government approaches you as a consultant and indicates that they will like to have a very low unemployment, zero inflation and very high GDP growth. How would you advice the government? Be concise in your advice. [10 Marks]


b. Business cycles are pervasive in all macroeconomic variables. Does the relative durations of expansions and recessions help explain the fact that long-term economic growth has been positive? ​​​​ [10 Marks]

Relate the law of diminishing returns to the cost curves

If marginal tax rate on individual income falls,we would expect,other things constant, individuals to?

To boost economic growth the government is most likely to

(ii) Given that: depreciation = 90, indirect taxes = 70, subsidies = 30, payments to factors of production from abroad = 20, payments to foreign factors = 40.

Compute:

1) Gross national product (GNP) at market prices.

2) Net national product (NNP) at market prices.

3) Net national product (NNP) at factor cost.

4) Net domestic product (NDP) at factor cost

a. In a given economy, the following hold true.
1.There are only two sectors-household and business sectors operating in the economy.
2. The percentage of every extra income which goes into consumption is 80%.
Given that an initial amount of 1000 currency units is introduced as investment in the economy. Draw up a table which tracks successive expenditure, income consumption and savings in the economy, up to the sixth round assuming the initial injection kicks in a multiplier process. (10 Marks)
b. Using your table, calculate the total amount of income and consumption and deduce the value of the national income multiplier. (10 Marks)

Why budget deficit and reduction in tax both not apply at the same time? Which strategy should choose to increase investment incentives

To boast economic growth the government is most likely to
.A.Increase interest rate
B. Increase taxation rates
C. Provide incentives to invest
D. Provide incentives to save