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Macroeconomics
Is a high savings ratio a requirement for funding a high ratio of investment to GDP over the longer term? Please provide a brief explanation
Macroeconomics
If the money market is in short-run equilibrium, explain the adjustments that will take place for:
i) an increase the in money supply
ii) increase in the demand for money
i) an increase the in money supply
ii) increase in the demand for money
Macroeconomics
Classical economists believe that if the economy is left on its own, without any intervention such as in a. above, there will be automatic adjustments towards full employment equilibrium. Explain.
Macroeconomics
Assume that the economy is in equilibrium at a level of output below that is associated with full
employment in the economy.
a. Show graphically, methods by which the economy might be move towards full
employment. (2 marks)
b. Which variables would have to be affected in each case to bring about the relevant
changes in aggregate supply or aggregate demand? (2 marks)
c. Which of these variables is it most likely that government could influence strongly?
Explain. (2 marks)
d. Classical economists believe that if the economy is left on its own, without any
intervention such as in a. above, there will be automatic adjustments towards full
employment equilibrium. Explain. (2 marks)
employment in the economy.
a. Show graphically, methods by which the economy might be move towards full
employment. (2 marks)
b. Which variables would have to be affected in each case to bring about the relevant
changes in aggregate supply or aggregate demand? (2 marks)
c. Which of these variables is it most likely that government could influence strongly?
Explain. (2 marks)
d. Classical economists believe that if the economy is left on its own, without any
intervention such as in a. above, there will be automatic adjustments towards full
employment equilibrium. Explain. (2 marks)
Macroeconomics
Suggest you are recommending monetary policy. The economy is experiencing a sharp and prolonged inflationary trend. explain how the change you advocate would affect the cash rate
Macroeconomics
Can a nation fund its investment at a level higher than that currently provided by its income? Explain
Macroeconomics
Classical economists believe that if the economy is let on its own, without any intervention such as in a. above, there will be automatic adjustments towards full employment equilibrium. Explain
Macroeconomics
Which variables would have to be affected in each case to bring about the relevant changes in aggregate supply or aggregate demand?
Macroeconomics
show graphically, methods by which the economy might be moving towards full employment
Macroeconomics
Explain the combined effect of an increase aggregate demand and decrease short run aggregate supply on a country's real GDP and the price level, starting from a position of a long-run(full-employment) equilibrium
