Macroeconomics Answers

Mr. Wong is a retired secondary teacher. Recently, he has become a volunteer tutor in

a community centre teaching a free guitar course.

(a) ‘Since Mr. Wong does not have any income from work, working as a volunteer

tutor does not involve an opportunity cost.’ Do you agree with this statement?

Explain.

(b) Explain whether the free tuition service provided by Mr. Wong is a free good.

Use the following data to answer the following questions

Year Real GDP per Capita (2012 Prices)

2013 $ 47719

2014 $48,116

2015 $48,822

2016 $49,184

2017 $50,010

a. What is the percentage change 2013 to 2017?

la

What is the average annual growth 2013 to 2017?

If gdp doubled in 10 years, what was the average annual growth rate?

Suppose that money demand function is (M/P)^d=1,000-100r,where r is the interest rate in percent. The money supply M is 1,000 and the price level P is 2.A.     Assume that the price level is fixed. What happens to the equilibrium interest rate if the supply of money is raised from 1,000 to 1,200?

In the circular flow of income and spending financial institutions?

In the circular flow of income and spending financial institutions

Will each of the following shift China's per-worker production function or just cause a

movement along the curve?

a. Capital per worker increases

b. China's government increases spending on university research

C. China's government increases spending on schools

Briefly explain so each of the following policies will impact U.S. economic growth

a.

Congress passes and investment tax credit, which reduces a firm's taxes if it installs new

machinery and equipment.

D. Congress passes a law that allows taxpayers to reduce their federal income taxes by the

amount of state sales taxes they paid

C.

Congress provides more funds for low-interest loans to students

Economists in Champaign have been studying the local market for Truly. They've found that the demand for Truly can be described by the following equation: P = 40 - 0.15Q What is the price elasticity of demand(using the Midpoint methodwhen moving from a quantity of 150 to 160? (input your answer in absolute value, and round it to include 2 decimal places.)

If the A bank experiences liquidity shortages, they can first borrow from …

a. 

another commercial bank and then the reserve bank as lender of last resort.

a. another commercial bank and then the reserve bank as lender of last resort.

b. 

the reserve bank since it is the only lender of last resort.

b. the reserve bank since it is the only lender of last resort.

c. 

bank B and bank C as the lenders of last resort.

c. bank B and bank C as the lenders of last resort.

d. 

bank C only as the lender of last resort.