Macroeconomics Answers

Which of the following statements are correct? a. If spending equals to production and income, there is no tendency for production and income to change b. If spending is greater than production and income, the level of production and income will decrease c. If spending is greater than production and income, the level of production and income will increase d.If spending is less than production and income , the level of production and income will decrease e. Spending may be equal to income, but smaller than production 1. b and e 2. a, c and d 3. a, b,c and e 4. a and d

Which of the following best describes the relationship illustrated by the aggregate demand (AD) curve?
1. The inverse relationship between price and quantity demanded for any product.
2. The negative relationship between the price level and levels of total production.
3. It shows no relationship between the price level and real GDP demanded.
4. The inverse relationship between the price level and real output demanded.

How do you dertemine planned investment?

With the aid of a diagram and with labour hours as my quantity variable , how would a minimum wage rate BELOW equilibrium wage rate affect welfare(1), and what is the effect on welfare if the new minimum wage rate is ABOVE equilibrium wage rate (2)

what is gdp

3) Supply and demand for a competitive labor market for professional hockey players is described by the following equations, where quantity is measured in hundreds:


P = 120 – 2Qd

P = 20 + 3Qs


Draw a graph of this labor market and calculate, and show, the equilibrium salary and quantity of players.

Assume there are 30 teams in a league. What is the effect of roster size per team being limited to 60? What is the effect of roster size per team being limited to 70?

Calculate the change in total surplus if roster size is changed from 60 to 50? As a whole, under which roster size limit are players better off?

Given a nominnal interest rate of 6 percent in which of the following casses would you earn the lowest after tax real interest rate

Explain briefly reasons that causes the world Economic Crisis in 2008.

Suppose that the economy is characterised by the following behavioural equations: C=C0+c1Yd where C0=280
I=270
G=300
T=200
Marginal Propensity to Save (MPS) is 0,4 or 40% solve for:
a) equlibrium GDP(Y)
b) disposal income (Yd)
c) consumption spending(C)

Discuss how the stimulus package will impact on the following macroeconomics indicators:
i) Public debt ii) Balance of trade