Macroeconomics Answers

Apply your knowledge of the AD/AS model to predict the effect on economic variables (i.e., P, RGDP, interest rates, wages, savings and spending) of some events on the U.S. economy. Diagram the effect of the following events. Be sure to explain the effects in the short run and effects in the long run for each question, in words. To keep things clear, assume that in each case the economy starts out at long-run equilibrium.
c. The government increases both taxes and spending by $500 billion. The money is spent domestically. Hint: Be sure to provide a strict interpretation of the AD/AS model as part of your answer.

Write a factor that may increase the value of education.

In which way education is increasing the wages of the workers according to the signaling critique?

Assume that manager of a restaurant told you that she is considering to send her workers to a
training program to teach them some skills, which will make them more productive. She said that however she is afraid that after they participate in the training program, her workers might demand higher wages or they might just quit and find another employer, so she might not get any additional revenue as an employer even though she will have paid the costs of the education her workers get. She asks you whether she can find a way to keep at least part of that additional revenue as profits. What will be your answer?

Complete the following data, which depicts a hypothetical economy in which the marginal propensity to consume is constant at all levels of real GDP and investment spending is autonomous. Equilibrium real GDP is equal to$8000. There is no government or foreign trade.
Real GDP $2000,Cosumption $2000?
How much is saving and investment ?

In a country with a population of 50 million people, there are 20 million children under the age of 15 years, 16 million employed, 9 million pensioners, 4 million unemployed and 1 million peip who are physically unable to work. Calculate the unemployment rate

How to calculate unemployment rate

In a basic Keynesian macroeconomic model, it is assumed that
Y = C + I
Where;
I = 250 and C = 0.75Y.
What is the equilibrium level of Y? What increase in I would be needed to cause Y to increase to 1,200?

In most of the developed countries after 1900’s, states started provide free healthcare services, and social security programs, as a result, in general, citizens of those countries, were able to get some income from their states, and at the same time, they get an additional financial support, whenever they have unexpected medical cost. We may assume as a result of these developments, the relative value of the future income for the people has increased. How may have this affected the number of young people who are willing to get collage education?

1.How changes in the repo rate can be used to increase economic growth?
2.How changes in the tax can be used to increase economic growth?