Macroeconomics Answers

A) C= 10+0.90Y , I=60. How will APS and MPS change as income changes? Is actual I= planned I at Y=850?

Given the following National Income Model

Y = C + I0 + G0 + X0 – Z
Where C = C0 + bYd
Yd = Y – T

T = T0 + Ty and Z = Z0 + ZYd
In this equation X and Z are export and import
• Identify endogenous and exogenous variables and parameters.
• Find out equilibrium level of Y and C

HOW IS INFLATION, THE OUTPUT GAP AND MONETARY POLICY RELATED?

GNPatFC =6215
Depreciation =565
Subsidies= 560
NDP atFC=5160
Factor income from abroad =230
Calculate factor income to abroad

The text notes that changes in oil prices can affect the inflation-unemployment outcome. Explain what effect changes in oil prices may have on these two variables.

How is inflation, the output gap and monetary policy related?

Which one of the following statements is correct?

A. An increase in government expenditure will shift the ASSR to the right.
B. Wage negotiations will shift the AD curve to the right.
C. Stimulating aggregate demand will not lead to a higher price level.
D. An increase in government expenditure will shift the AD curve to the right.

Which of the following is correct.

A. Microeconomics and labour economics consider the economy as a whole.
B. Microeconomics decompose the whole economy into different sectors.
C. The unequal distribution of income as a macro policy goal.
D. The business cycle, inflation and economic growth are considered macroeconomics phenomena.

supposed that, instead of a fixed level of taxes, we had an income tax so that t=ty where t is the income tax rate. drive an expression for multiplier. what is the expression equivalent to the autonomous expenditure multiplier (1/1-b) for this case of an income tax?

Which of the following is correct.

A. Strict business regulations will shift the investment function to the right.
B. In the 45 degree line model, investment levels depend on the level of income.
C. The autonomous investment is negative when interest rate is zero.
D. A tax incentives will shift the investment function to the right