Macroeconomics Answers

Equilibrium level of income is that at which

True or false questions:
1. The horizontal intercept of the Okun’s Law curve for an economy is
that economy’s NAIRU.

2.Liquidity traps can be caused by large negative shocks to the level of
aggregate demand such as is currently occurring in response to
Covid19 virus. __________


3.The concept of “factor price equalization” is directly related to the
“interest rate parity condition” as used in the Mundell-Fleming open
economy macro model.

4. According to the Mundell-Fleming variant of the IS-LM macro model
the effect of an expansionary fiscal policy on the level of fixed
investment is uncertain.

according to the keynesian model,the factors that influence a household's induced consumption are the marginal propensity to consume and...

Greater integration of domestic industries with global production network (GPN) must form an essential part in the make in India initiative. Discuss.

What is the 'divine coincidence' and why is it difficult to implement?

1) How does the 'efficiency wage' prevent the economy from achieving full-employment?

2) With the help of Lucas' model, show how supply and demand shocks are mitigated in the presence of rational expectations and Lucas' supply curve.

In a large economy such as ours, it is impossible to simply count how many times each dollar changes hands (velocity). H ow do we calculate V?

How is the forward looking monetary policy different from its backward looking counterpart?

Which of the following statement is correct about the introduction of taxation in the Keynesian model?
1. It increases the value of the multiplier
2. It shifts the aggregate expenditure curve upwards
3. It increases net exprts
4. It swivels the aggregate expenditure curve downwards

C=100+0,80Y, what is the savings function in the simple Keynesian model?
1. S=-100+0,20Y
2. S=100+0,20Y
3. 0,20
4. 5