Macroeconomics Answers

Consider the following numerical example of the simple keynesian model with no government spending ,taxes or foreign sector (all figures in R millions):
C=100 + 0,9Y
I=50
Answer the following question.
1- use a graph to illustrate the equilibrium level of output.

Consider the following numerical example of the simple keynesian model with no government spending ,taxes or foreign sector (all figures in R millions):
C=100 + 0,9Y
I=50
Answer the following questions.
1-calculate the equilibrium level of output.
2-in equilibrium , what is the value of consumption spending ?use this number to verify that the sum of C and I in equilbrium equals the value for equilibrium output you obtained above.
3-suppose the level of output that creates full employment in the economy is 1800.using the multipler ,determine the level of investment spending that would create full employment in this economy.

Consider the following numerical example of the simple keynesian model with no government spending ,taxes or foreign sector (all figures in R millions):
C=100 + 0,9Y
I=50
Answer the following questions.
1-calculate the equilibrium level of output.
2-in equilibrium , what is the value of consumption spending ?use this number to verify that the sum of C and I in equilbrium equals the value for equilibrium output you obtained above.
3-what is the value of the multiplier in this economy?

Question 1: Suppose that there is a decrease in government spending of $70 billion, and that the government spending multiplier is 2. How does the real GDP change? How is this calculated.

Question 2: Suppose that there is an increase in taxes of $42 billion, and that the tax multiplier is -1.5. How does the real GDP change? How is this calculated.

State the similarity and differences between a 'Big Push Model ' and 'O Ring Model '?

Calculate:
1. CPU per basket
2. The inflation rate
If in the CPU basket contain the quantities bought in 2010. The average household spending $60 on juice and $30 on cloth in 2009.When the price of the juice was $2 a bottle and the price of cloth was $5 meter.In the current year 2010 juice is $4 a bottle and cloth is $6 a meter.

Calculate:
1. The unemployment rate?
2. Labour force participation rate
3. Absorption rate give the following :
Labour force 17948000
Employment 13422000
Working age population 32786000

Explain how the inflation rate that is usually reported every Month in the media is obtained,use hypothetical figures for calculations

If simple Keynesian model with no government,taxes or foreign sector
C=100+0,9y
I=50
1. What is the value of the multiplier in this economy?
2. Suppose the level of output that created full employment is 1800.Using the multiplier determine the is the level of investment spending that would create full employment in this economy.

Consider the following numerical example of simple Keynesian model with no government sending , taxes or foreign sector.
C=100+0,9y
I=50
A. What is the value of the marginal prosperity to consume, in this model?
B. Use a graph to illustrate the equilibrium level of output?
C.Calculate the equilibrium level of output?
D. In equilibrium what is the value of consumption spending?use this number to verify that the sum of C and I in equilibrium equals the Value for equilibrium output you obtained above