Macroeconomics Answers

How including capital goods(machinery) in final product produced by them result in double counting? How this problem is solved. Pls explain the whole process with an example.

Dell Corporation makes two types of tablets, A and B in equal quantities. That is, for every unit of tablet A that firm produces, it also produces 1 unit of tablet B. Dell corporation total cost function is
TC = 100 + Q + 2Q
Where Q is the number of units of output(Where each unit contains 1 unit of tablet A and 1 unit of tablet B), and TC is the total cost (in$). The demand curves for the firm two products are:
Pa = 200-Qa
Pb = 150 - 2Qb
Where Pa and Qb are the price and output A, and Pb and Qb are the price and output of product B.
a. How much of each product should the Dell Corporation produce and sell per period of time?
b. What price should it charge for each product ?

During the 2016 fiscal year, households in economy spent 75 per cent of their disposal income on consumption as well as 500 consumption expenditure which is independent of income. Total government expenditure which stood at 800 was supposed to be financed from a proportional tax levy of 20 per cent of national and VAT of 100. Total private investment spending was made up of 400 whereas export was 400 and an import of 500
a. Determine the equilibrium national income for this economy.
b. Determine the consumption and savings levels at equilibrium national income

Demonstrate the economies likely position on both short-run and long-run Phillips curve

In the circular flow of income and spending, i.e. the basic flow of income and spending between households and firms supplemented by the foreign, financial and government sectors,

You are given the following hypothetical information about the Commodity and Money markets of a closed economy without government intervention.
The commodity market
Consumption function: C = 100 + 0.3Y
Investment function: I = 2,000 – 2.1r
The Money Market
Lt = 0.2Y (transaction demand for money function)
Ls = 10 – 2r (speculative demand for money function)
MS = 1,500 (money supply function)
a.) Derive the IS curve. ( 1 marks)
b.) Derive the LM curve ( 1marks)
c.) Derive the equilibrium level of income and rate of interest. ( 4 marks)
d.) If the money supply is increased by 75, what would be the effect on the equilibrium level of income and rate of interest

Given a hypothetical consumption function of the form:
Y = C + I0 + G0
C = α + β
Where: = Y – T
Y = Income
T = Taxes
Compute the equilibrium level of income and consumption (4 marks)

The demand curve will not shift if...

consumers prefer less of the product.
a substitute product is available for a lower cost.
the price of the product decreases by 20 percent.
the number of buyers decreases.

Trade between two countries...

1.causes one country to gain and the other country to lose
2.has advantages for both parties
3.has, at best, no impact on the everyday lives of ordinary citizens
4.can benefit one country but not both

what is real gdp