Macroeconomics Answers

What is comparative advantage?

A change in the required reserve ratio will impact a nation's money supply by changing the:
Group of answer choices

a. denominations of currency that are printed and available to banks.

b. amount that is held in excess reserves and the public's willingness to make deposits.

c. holdings of government bonds by the Federal Reserve and the cost of buying them.

d. size of the potential deposit multiplier and the amount that is held in excess reserves.

Which change in the rand-dollar foreign exchange market will cause ZAR (rand) to appreciate and the amount of USD traded daily increases?
A. a shift of the supply of the USD curve to the left
B. a shift of the supply of the USD to the right
C. a shift of the demand of the USD to the left
D. a shift of the demand of the USD to the right

Most students pay no direct cost in terms of money for public education. To them the value of their education is a consumer surplus. Why doesn’t this result in lots of students demanding extra homework and remedial classes after school?

An increase in government spending in the Keynesian model leads to .....
1. Demand is greater than supply
2. Demand is lesser than supply
3. Demand that is equals supply
4. Decrease in production

Economists teach that “there is no free lunch”. As it concerns Economic Growth, the benefits are well known, but what are the costs? Discuss.

Economic Growth can be modeled as an aggregate production function that shows the determinants as inputs. Discuss.

Dickson quantity demand of perfume rice is increased from 34bags to 67 bags when his income increased from $100 to $500.calculate the income elasticity of demand. Is the perfume rice normal or inferior? Explain

What component of GDP is affected when someone buys a house?

If the AS curve shifts to the left as productivity decreases, it will result in a combination of…