Macroeconomics Answers

How aggregate demand is determined in classical model?

Explain how a decrease in marginal propensity to consumer will affect the size of the autonomous expenditure multiplier. Other things being constant.

Which of the following statements regarding economic growth is correct?

A] Real gross domestic product (GDP) measures the impact of economic growth on pollution and environmental degradation.
B] With the recent use of high-speed computers, economists are able to measure the size of the informal sector accurately.
[C An increase in real GDP per capita implies that income is more evenly distributed in the economy.
D] When measuring economic growth, changes in prices and in the population should be taken into account.

Which one of the following factors could have caused the Rightward shift in the curve from AD0 to AD1, ceteris paribus?

[1] An increase in total production
[2] A decrease in the government spending
[3] An increase in taxes
[4] A reduction in imports

Suppose Ghana produces cocoa and timber, and the following hypothetical data is provided for 2016 and 2017.

2016 2017
Good Quantity Price Quantity Price
Cocoa 1000 2 1100 3
Timber 500 10 525 8

Using 2016 as a base year, real GDP in 2017 is ...
[1] 3125
[2] 7500
[3] 5250
[4] 7450

Suppose Ghana produces cocoa and timber, and the following hypothetical data is provided for 2016 and 2017.

2016 2017
Good Quantity Price Quantity Price
Cocoa 1000 2 1100 3
Timber 500 10 525 8

Between 2016 and 2017, nominal GDP grew by ...
[1] 5.25%
[2] 10%
[3] 5%
[4] 7.14%

Suppose Ghana produces cocoa and timber, and the following hypothetical data is provided for 2016 and 2017.

2016 2017
Good Quantity Price Quantity Price
Cocoa 1000 2 1100 3
Timber 500 10 525 8

Nominal GDP in 2016 is ...
[1] 2000
[2] 3625
[3] 7000
[4] 5000

If 8 million kegs are sold, MB exceeds MC, which means that

Housing prices rose very rapidly during 2002 to 2007. Show and explain why.

Using appropriate graphs, explain how a decrease in marginal propensity to import will affect the size of the autonomous expenditure multiplier, other things being constant. (You can use the multiplier formula to assist your explanation)