Macroeconomics Answers

Explain the effect of deflation and suggests measures of controlling it

How does Phillips curve explain the relationship between inflation and unemployment along with it graph explanation

1. A tour operating firm plans to take tourists between Addis Ababa and Jimma. its estimated cost function given by C =100 +50 N+4N2 (Where N denotes the number of passengers per day)

A. State the average cost function.

B. State the marginal cost of the average cost function.

C. Find the number of passengers per day that minimize average cost.

D. What is the minimum average cost at the optimal level of passenger?

E. What will be the total cost at the optimal level?

What are the two subfield of economics?

Compared to Tunisia, Malaysia's GDP per capita is USD9945 for 2017. What is the average growth rate that Tunisia should maintain since 2009, if the country wants to achieve GDP per capita in line with Malaysia?

If Tunisia continues to enjoy growth at a rate of 5% per annum since 2009, what will be its per capita income in 2018?

Why does the quantity of salt demand tend to be unresponsive to changes in its price?

Define the term corn economy

Indicate whether you agree and disagree with the following statements. Note that you need to write the justification that support your response.

1.The economy in New Keynesian School can be characterized by market imperfections and sticky prices and wages. However, money is assumed affecting real sector.

2.Money supply is endogenous and exogenous in the case of flexible and fixed exchange rate regimes, respectively

3.The 1970s price shock brought attention of rational expectation into macroeconomics

Macro-economic objectives how use measures