Macroeconomics Answers

How far ahead do people typically look in making market decisions?
Provide examples of different forms of market behaviour in this regard.

Explain income method of measuring GDP. What is the role of statistical diserepancy.

Assume that the aggregate production of an economy is Yt= √Kt Lt , where Kt+1 =( 1-d) Kt+ It, St= sYt and Lt= L( i.e., the notation and meanings is to correspond the setting for the allow model with constant population. Then the savings rate s that maximizes the steady rate of consumption equals ?

An economy initially has 200 units of physical capital per worker. Each year, it increases the amount of physical capital per worker by 10%. According to the aggregate production function for this economy, each 1% increase in physical capital per worker, holding human capital and technology constant, increases real output per worker by 0.25%.

a. If real output per worker is initially $1,000, what will it equal as a result of only the increase in physical capital per worker (i) after one year? (ii) after two years?

b. If after two years real output per worker is actually $1,100, how much of its growth was due to increase in human capital and technological progress?

Project Cost $125 million in 1999, CPI 2018$/1999$=1.50, Exchange rate 6.71 ¥/$
What did it cost in 2018 ¥?

During 2013, the country of Economic had a real GDP of $115 billion and the population was 0.9 billion. In 2012, real GDP was 105 billion and the population was 0.85 billion. Economics growth rate of real GDP per person is

discuss the long run average cost curve and how it relates to returns to scale

Assuming that South Africa economy experience a high level of inflation. The SARB makes use of monetary policy to decrease the inflation rate.
a. Mention one of the instruments of monetary policy and describe how the SARB will manipulate it.
b. Explain by the use of graphs, the impact of such monetary policy on aggregate output. In your explanation, describe the interaction between the Money market, IS-LM and AD-AS Model.

A. Based on the international trade effect, how would an increase in the price level in South Africa affect the exchange rate and aggregate demand?

1. Rand will appreciate, the quantity of aggregate demand will decrease
2. Rand will depreciate, the quantity of aggregate demand will increase
3. Exchange rate will remain unchanged, the aggregate demand will decrease
4. Exchange rate will increase, the aggregate demand will increase

Consider the non-linear inverse demand function, p= -q2-q+I. Given the total cost function: TC =9q2+2q+
i. Find the marginal cost (MC) and average cost (AC) as functions of q
ii. Find the output at which average cost is minimized