Macroeconomics Answers

Suppose that a technological advance occurs that affects the production of capital goods but not consumption goods. Show the effect on the production possibility frontier

All good and services produced by one firm but used as inputs into a further stage of production are called

For the
following factors listed below, predict, and draw the shifts of the curves AD and AS,
respectively. Provide an explanation with the support from a case study.
a) An increase in AS due to full employment.
b) A decrease in AD due to recession

Suppose government increases taxes by 100$, if MPC is 0.7 what happens to private savings, public savings, national savings and investment

Which are the reasons why developing economies and developed economies are converging more? Explain

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

During the ongoin pandemic, discuss about the elasticity of demand for hand sanitizers with an appropriate graph

Monetary base is defined as currency in circulation plus banks' deposits at the central bank.
(a).Give an example of an event that could lead to an increase in the amount of monetary base needed to make a given amount of transactions?

(b). Is it plausible to make purchases without using monetary base?Illustrate your answer(s) with relevant examples