Macroeconomics Answers

What is the most important source of long term economic growth?

Classify the following topics as relating to microeconomics or macroeconomics.
a. a worker's decision about how many hours to work.
b. the effect of government spending on the nation's unemployment rate
c. the impact of new technology in the market for DVD recorders.
d. the relationship between education and economic growth
e. the optimal choice of a firm on how many workers to employ.

Economic Planning Unit (www.epu.jpm.my)
Ministry of Finance (www.treasury.gov.my)
Bank Negara Malaysia (www.bnm.gov.my)
Department of statistics, Malaysia (www.statistics.gov.my)
Malaysia Industrial Development Authority (www.mida.gov.my)

based on the websites listed. what recent economic trends or issues are addressed there?

What are the four assumptions in the production possibilities curve and how can unemployment be illustrated with that curve.

A true market economy would allow its citizens to buy from the company that sells the good at the lowest price, regardless of where that company is located. How would a communist country deal with the problem of its consumers demanding foreign imports? Does this result in a better situation for the consumers than a scenario with free trade based on comparative advantage, why or why not?

explain whether each of the following government activities is motivated by a concern about equity or efficiency . in this case of efficiency, discuss the type of market failure involved
a. providing subsidies to padi farmers
b. regulating electricity rates
c. evaluating mergers of malaysian banks
d. giving free health care services
e. providing national defense
f. improsing fines on firms that pollute

Explain why changes in consumption are unpredictable if consumer obey the permanent income hypothesis and have rational expectation

1. Do you think that inflation imposes a net cost to the economy after considering the gains and loss? If so, which type of cost? Discuss each scenario below.

a) (1 mark) Nobu gets paid more frequently and thus has to make more trips to the banks down the road, when inflation is expected to be high.
b) (1 mark) Nobu gets reimbursed by RMIT for his work-related expenses. However, sometimes it takes longer time to reimburse him (quite often in reality!). When inflation is expected to be high, he is less willing to travel for his job.
c) (1 mark) Responding to unexpectedly high inflation, the manager of the Sofitel Hotel must reprint and resend expensive coloured brochures correcting the price of the accommodation in this season

Full employment is the situation when:which of the choices below is the right answer?
a.inflation rate is 20%
b.the curve of the aggregate demand has a positive slope
c.real GDP match with potential GDP
d.all of them
e.none of them

In long term, what happens with the aggregate supply:Which is the right answer from the choices below?
a.the aggregate supply has a negative slope
b.the aggregate supply do not depend on the level of prices
c.real GDP is under potential GDP
d.all of them
e.none of them