Macroeconomics Answers

You are a manager at Glass Inc.—a mirror and window supplier. Recently, you conducted a study of the production process for your single-side encapsulated window. The results from the study are summarized in the table below, and are based on the 8 units of capital currently available at your plant. Workers are paid $60 per unit, per unit capital costs are $20, and your encapsulated windows sell for $12 each. Given this information, optimize your human resource and production decisions. Do you anticipate earning a profit or a loss?explain carefully
labour output
0 0
1 10
2 30
3 60
4 80
5 90
6 95
7 95
8 90
9 80
10 60
11 30

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.

In USA some minorities like Asian Americans are more willing to go to collage compared with White Americans, the etnic majority in the country. Other minorities like African Americans rather find job after graduating from high school, or even dropping out of the high school. Write a factor that may be behind the decision for each of these minority groups.

What is the size of the labor force?
Natural rate of unemployment= 4%
potential Real GDP=$20T
Part-time for economic reasone= 8
Marginally-attached workers/ Discouraged workers=14
Population institutionalized= 40
Not in labor force= 60
Unemployed=30
total population=415
population under 16 year of age= 15

Use the model of aggregate demand and short run aggregate supply to explain how each of the following would affect the real GDP and price level in short run.
1. reduction in nominal wages
2.a major improvement in technology
3.a reduction in net exports

Use the model of aggregate demand and short run aggregate supply to explain how an increase in government purchases affects real GDP and price level in shortrun

Apply your knowledge of the AD/AS model to predict the effect on economic variables of some events on the U.S. economy. Diagram the effect of the following events. Explain the effects in the short run and effects in the long run . Assume that the economy starts at long-run equilibrium.
d.Suddenly, foreign countries sell great quantities of important inputs such as steel and computer chips at very low prices in this country.long-run effect will depend on whether the price decrease is permanent or not.

In Goa, India, the multiplier effect of iron ore exports is calculated to be 1.62 (Ta, 2003). Calculate the impact of an additional 1,000 rupees of iron ore exports on the economy of Goa.

2. Use the model of aggregate demand and short-run aggregate supply to explain how each of the following would affect real GDP and the price level in the short run.

an increase in government purchases
a reduction in nominal wages
a major improvement in technology
a reduction in net exports

3. 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.

Qd = 5 - P , and Qs = -5 + P, then equilibrium price and quantity will be