Macroeconomics Answers

John secured the bank's $2,000 mortgage to buy a car. After the contract was written it turned out that inflation in the economy was lower than expected. Who gained from this development and who lost? Explain

India's central bank has a higher inflation target than America's central bank. Does this tend to appreciate or depreciate the Indian rupee against the American dollar? Explain

Prime minister of india promised a more aggressive fiscal policy with large increase in spending and significant tax cuts leafing to much larger budget deficit. The Indian economy was near the full employment rate ( in India unemployment rate was below 5%), what would India's central bank response in terms of changes to the cash rate? Explain

Consider the following information for a particular economy.
Total population =60 million
Number of employed=30 million
Total labor force = 40 million
Natural rate of unemployment =12%
a) Find the total unemployment rate
b) Calculate the cyclical unemployment rate

Discuss the concept of liquidity trap and its implications on the conduct of monetary policy in an economy.

What are the reasons behind convergence of developed and developing countries?

John secured the bank's $2,000 mortgage to buy a car. After the contract was written it turned out that inflation in the economy was lower than expected. Who gained from this development and who lost? Explain

India's central bank has a higher inflation target than America's central bank. Does this tend to appreciate or depreciate the Indian rupee against the American dollar? Explain

Prime minister of india promised a more aggressive fiscal policy with large increase in spending and significant tax cuts leafing to much larger budget deficit. The Indian economy was near the full employment rate ( in India unemployment rate was below 5%), what would India's central bank response in terms of changes to the cash rate? Explain