Macroeconomics Answers

Explain the effect of investment subsidy on equilibrium interest rates
, consumption, investment and GDP
compare the result with other fiscal policy measures

If one watch costs $500, what is the aggregate demand for watches in
Stickmanland? Would a change in the cost of watches result in a change in aggregate
demand? How

Given that we look for a balanced unemployment rate of 6%, we think a GDP growth rate of 3% is great and aim for 1-3% inflation, explain which country do you believe had the best economic outlook before COVID-19?

5. According to classical economic theory, which of the following do changes in the money supply affect?
a. real GDP
b. real interest rates
c. the price level
d. unemployment


7. Which of the following does the downward slope of the aggregate-demand curve show?
a. that an increase in the money supply causes the aggregate quantity of goods and services demanded to increase
b. that an increase in the money supply causes the aggregate quantity of goods and services demanded to decrease
c. that an increase in the price level causes the aggregate quantity of goods and services demanded to increase
d. that an increase in the price level causes the aggregate quantity of goods and services demanded to decrease

10. Which of the following shifts aggregate demand to the right?
a. a decrease in the money supply
b. a decrease in net exports at every exchange rate
c. a decrease in prices
d. a decrease in taxes

2. Which of the following does the economy experience during a recession?
a. rising employment and income
b. rising employment and falling income
c. rising income and falling employment
d. falling employment and income


____ 3. Which of the following best defines business cycles?
a. long-term trends in economic activity
b. regular, predictable fluctuations in GDP
c. the rise and fall of multinational companies
d. fluctuations in the economy

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

Select one:
structural unemployment amounting to 5.7 percent of the labor force
frictional unemployment amounting to 0.5 percent of the labor force
cyclical unemployment amounting to 0.5 percent of the labor force Correct
structural unemployment amounting to 0.5 percent of the labor force

The central bank use monetary policy to control undesirable fluctuations in real GDP among other methods by

How do I find a country’s real GDP?

How can disagreements over discretionary spending lead to a government shutdown?

An increase in private saving which is accompanied by an equivalent increase in exports would increase the domestic investment.True or false? Explain