Macroeconomics Answers

What are the equilibrium values of C,I and r?

GDP (Y) i=5,000

C=740+0.5 (Y-T)

I=1500 - 50r where r is the real rate of interest in percent

T= 1259

G=1125

How to solve higher interest rate by using classical and keneysian theory

Suppose the government cuts income that show in the IS-LM model the impact of the tax cut under two assumptions

(1) the government keeps interest rates constant through an accommodating monetary policy

( 2 )The money stock remains unchanged explain the difference in results

Given the following information for a hypothetical economy (all are in billion dollars)

Money demand = 10Y-0.2r

Money supply = 1000

C = 80 + 0.1 Ya

G = T = 20

I=20-0.3r

A. Derive the IS equation

B Derive the LM equation

C. Find the equilibrium interest rate

D. Find the equilibrium income level

E. Show your results graphically

a. How does an increase in the tax rate affect the IS curve?

b. How does the increase affect the equilibrium level of income?

In an economy with 200 million people, 120 million hold jobs and 30 million are not working butare looking for jobs. The number of people in the labor force is _______________.

A. 200 million.

B. 80 million.

C. 150 million.

D. 90 million.

The people on coral Island by only juicing cloth. The CPO basket contains a quantities bought in 2013. The average household spent $34 on juice and $40 on cloth and 2013 when the price of juice was two dollars a bottle and the price of cloth was four dollars a yard. in 2014 juices four dollars a bottle and cloth is seven dollars a yard. Calculate the CPI basket and the percentage of the households for budget spent on juice in 2013

Economic growth can bring benefits for society in that people, on average, have more income, but it also brings with it more problems. Just as economic theory at the microeconomic level can identify the externalities of economic consumption and production, so it can be used to highlight the trade-off between the benefits and costs of economic growth itself.

Explain both the meaning of economic growth and why it is considered to be an important objective for government. Apply relevant economic analysis to evaluate why it is argued that relying on economic growth itself is not a useful way of measuring real progress in advancing the well-being of society.

What is the macro prudential tools? Explain by giving three (3) appropriate examples.   

What is the macro prudential tools? Explain by giving three (3) appropriate examples