Macroeconomics Answers

Suppose that the economy is characterized by the following behavioral equations: C = 150 + 0.4Yd-6i, I = 70 + 0.2Y-i, G = 80, T = 15+0.25Y, Md = 0.2Y-15-75i, M=2800,P=20

The United Kingdom (UK) held a national referendum (vote) on whether the UK should remain in the European Union (EU), or should exit the EU. Exiting the EU is likely to have several consequences: (1) increased barriers to trade between the UK and the remaining EU countries; (2) Reduced refugee flows.

Use the AS/AD model to describe the short run and long run effect of the UK exit from the EU.

The economy is at full employment and an election is coming up. Officials decide to increase government spending by $100 billion. Graham says the money should be spent on improving education and transport systems. Dole proposes building several large Coast Guard training facilities in states that currently have none. What effect would Senator Dole’s proposal have on the AD/AS model? Describe all shifts and effects on short and long-run equilibrium change in output and price level.

The economy is at full employment and an election is coming up. Officials decide to increase government spending by $100 billion. Graham says the money should be spent on improving education and transport systems. Dole proposes building several large Coast Guard training facilities in states that have none. What effect would Graham’s proposal have on the AD/AS model? Describe all shifts and the effects on short and long-run equilibrium change in output and the price level.

Assume skilled TRNC citizens have a relatively easy access to the job markets in UK, EU, Australia and Canada, while the access of unskilled TRNC citizens to those markets is more limited and wages in those job markets are considerably higher compared with the wages in TRNC and Turkey. Also assume local market for unskilled labor is more competitive as a result of immigrants comming from Turkey and other developing countries to TRNC to work. How would these factors affect the value of education for TRNC citizens? Explain your answer.

Write when a company is likely to pay for the education of its workers?

In 1990’s in Turkey, economy entered into depression. As a result unemployment rate throughout
the country has risen. Most people have lost all their savings, and their income was so low, that they were only barely able to survive. How would you expect these developments to affect the interest rate (or discount rate) in general in Turkey?

how indifference curve graph effect by margin unity

In recent years, the collage costs in USA moved up. At the same time the wage difference between the high school students and collage graduates went up. How would you expect the expected effect of these trends to be on the number of students in USA who are willing to get collage education?

In 1990’s in Turkey, economy entered into depression. As a result unemployment rate throughout
the country has risen. Most people have lost all their savings, and their income was so low, that they were only barely able to survive. How would you expect these developments to affect the interest rate (or discount rate) in general in Turkey?