Macroeconomics Answers

At the rate 025 per unit of commodity x 250 unit commodity was bought given for certain reasons the price of commodity x increase in #50 per unit the quantity demanded of price was reduce to #150 compute the coefficient of cross price elasticity and state the relationship between the two commodity

In a monetary policy , among other ways to finance a deficit – there are :
Issuing securities, Fiat money, Borrowing from abroad, or Borrowing from domestic financial institutions.
Elaborate – verbally and graphically on 2 methods:
One method leads to inflationary pressure, and another method leads to a negative impact on investment – through interest rate

Given the national income. Plotted on the horizontal axis and the GDP deflator on the vertical one. Explain verbally and graphically, how to use the fiscal policy-as an automatic adjustment to reach the potential level of GDP along the LRAS curve

what change in the open market operation would u recommend and how it affects the cash rate?

a driver wishes to buy gasoline and have her car washed. she finds that the wash costs $3.00 when she buys 19 gallons at $1.00 each, but that if she buys 20 gallons the car wash is free. Thus, the marginal costs of the 20th gallon of gas is

A country reported a real GDP growth of 4.17% from 2011 to 2012 and reported a GDP deflator
of 125 in 2012 and 120 in 2011. What happened to the country’s nominal GDP and price level
from 2011 to 2012 (Increased, decreased or remained the same)? Calculate the percentage change
of each.

what are the probable longer-term implications for investing at a higher level than its current income?

Is there an apparent relationship between low savings ratios and the ratio of foreign debt
to GDP? Explain

The inability to fund investment with internal savings suggests the need to borrow the required funds elsewhere. On the other hand, the presence of excessively high levels of foreign debt relative to GDP may suggest a need to constraint current investment (and consumption) expenditures in order to service the debt load.

Suppose nominal gdp starts at 1000 and grows each quarter by 0.65% . What is the level of gap after 7 years?