Macroeconomics Answers

Tax cuts in the US cause and increase in the price levels relative to the price in Canada.
a. draw side by side model showing changes
b. explain the effect on the currencies
c. explain the effect on US net exports based on the changes in the foreign exchange market

Value of Money Multiplier ..................with an increase in Cash Reserve Ratio?

Contribution of business to the economic development of Nigeria

Suppose the economy is described by following characteristics
C(Y)=200+0.4(Y-T)
I=100
G=400
T=100
Determine the equilibrium output level.

Explain and illustrate the following statement: “ A deficit on the balance on current account will impose severe constraints upon domestic economic policies”

If more Canadians adopted a “live for today” approach to life, how would this affect saving, investment, and the interest rate?

(a) What is the number of frictional/seasonal unemployed in Eastralia? (1 mark) (b) What is the number of structurally unemployed? (1 mark) (c)What is the number of cyclically unemployed? (2 marks) (d) What category of unemployed do the people in (v) fit into? (2 marks) (e)Explain whether or not there is a clear cut distinction between frictional,structural and cyclical unemployment. (4 marks)

The country of Eastralia is experiencing the following unemployment: (i) 1750 seasonal workers harvesting fruit have finished picking for the season. (ii) 800 motor vehicle workers have been retrenched because employers have decided to reduce production due to a fall in demand for motor vehicles. (iii) 250 skilled technicians are unemployed because their electrical mechanical skills have become redundant as firms have re-equipped with electronically advanced controlled equipment. (iv) 150 skilled workers are unemployed as a result of their firm losing an export contract to a competitor in another country who has recently installed new technologically advanced production methods. (v) Because they are convinced that no work exists for them in a depressed economy, 370 people aged over 55 years who are skilled have ceased looking for employment

Indicate whether each of the following creates a demand for, or supply of Euros in foreign exchange markets: (a) An Australian importer purchases a shipload of French wine. (b) A German motor vehicle manufacturer decides to build an assembly plant in Adelaide. (c) An Australian university student decides to spend a year studying at an Irish university. (d) A French manufacturer exports machinery to Morocco on an Australian ship. (e) An Australian government bond held by a Dutch citizen matures.

Design an anti- recession stabilisation policy, involving both fiscal and monetary policies which is consistent with: (a) A relative decline in the public sector. (b) Greater income equality (c) A high rate of economic growth.