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Macroeconomics
The ABS System of National Accounts data shows the components of GDP (see Table 2). http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/5204.02016-17?OpenDocument
Using this information, we can calculate the value of net exports, from which we can see that net exports have been negative since June 2005 (the data has been updated from the numbers used to create the Topic 7 charts). Use an AS-AD diagram to help explain how has likely impacted output and inflation in Australia.
a) Suppose that Australia starts off in long-run equilibrium with all workers working full-time at 37.5 hours per week. Show this long-run equilibrium on an AS-AD diagram of the macroeconomy. (1 mark)
b) Now suppose that the government mandates a work-week of 30 hours and that, for now, there are no other changes to productivity or anything else at all. Use your diagram to show what is likely to happen to the SRAS curve and explain what this is likely to do to output and inflation in the short-run. (3 marks)
Using this information, we can calculate the value of net exports, from which we can see that net exports have been negative since June 2005 (the data has been updated from the numbers used to create the Topic 7 charts). Use an AS-AD diagram to help explain how has likely impacted output and inflation in Australia.
a) Suppose that Australia starts off in long-run equilibrium with all workers working full-time at 37.5 hours per week. Show this long-run equilibrium on an AS-AD diagram of the macroeconomy. (1 mark)
b) Now suppose that the government mandates a work-week of 30 hours and that, for now, there are no other changes to productivity or anything else at all. Use your diagram to show what is likely to happen to the SRAS curve and explain what this is likely to do to output and inflation in the short-run. (3 marks)
Macroeconomics
You are given the following information about the economy of Zealand. Autonomous
consumption expenditure is $100b, and the marginal propensity to consume is 0.9. Investment is
$460b, government purchases of goods and services are $400b, and net taxes are a constant
$400b – they don’t vary with income.
a) Derive the equation that describe the consumption function? (1 mark)
b) Derive the equation that describes the aggregate expenditure curve? (1 mark)
c) Calculate equilibrium expenditure and real GDP. (2 marks)
d) If investment falls to $360b, what is the change in equilibrium expenditure and what is
the size of the multiplier? (2 marks)
e) Sketch the information from a) – d) above using a Keynesian income-expenditure
consumption expenditure is $100b, and the marginal propensity to consume is 0.9. Investment is
$460b, government purchases of goods and services are $400b, and net taxes are a constant
$400b – they don’t vary with income.
a) Derive the equation that describe the consumption function? (1 mark)
b) Derive the equation that describes the aggregate expenditure curve? (1 mark)
c) Calculate equilibrium expenditure and real GDP. (2 marks)
d) If investment falls to $360b, what is the change in equilibrium expenditure and what is
the size of the multiplier? (2 marks)
e) Sketch the information from a) – d) above using a Keynesian income-expenditure
Macroeconomics
calculate GDP and National income: transfer Payment=80, govt. purchase=250, net indirect taxes=40, proprietrs income=160,wages & salaries=480,personal consump. exp.=500, capital cons. allowance=100, export-imp=50,corporate profit=120,interst &invest income=50,gross invest=150, net invest from non residents=60
Macroeconomics
Determine whether each of the following four sentences uses the terminology of the supply and demand model correctly.
a. “The price of bicycles rose, and therefore the demand for bicycles went down.”
b. “The demand for bicycles increased, and therefore price went up.”
c. “The price of bicycles fell, decreasing the supply of bicycles.”
d. “The supply of bicycles increased, and therefore the price of bicycles fell.”
a. “The price of bicycles rose, and therefore the demand for bicycles went down.”
b. “The demand for bicycles increased, and therefore price went up.”
c. “The price of bicycles fell, decreasing the supply of bicycles.”
d. “The supply of bicycles increased, and therefore the price of bicycles fell.”
Macroeconomics
Use the supply and demand curves to illustrate and explain the likely effects of the following events on the market for orange juice. Draw a separate diagram for each case, label your diagrams and clearly identify the direction of the change in both equilibrium price and quantity sold. Treat each part separately.
a. A recent research reports that vitamin C cures cancer, and orange juice is the best source of vitamin C.
b. Due to unfavorable weather conditions in apple growing states, price of apple juice doubles.
c. Freezing temperatures in California shrinks the orange crop to one-third its normal size.
d. The wages of orange pickers increases after a successful strike.
e. The U.S. government, in order to support the domestic orange growers, grants a 50-cents subsidy for each bushel of orange grown in the country.
a. A recent research reports that vitamin C cures cancer, and orange juice is the best source of vitamin C.
b. Due to unfavorable weather conditions in apple growing states, price of apple juice doubles.
c. Freezing temperatures in California shrinks the orange crop to one-third its normal size.
d. The wages of orange pickers increases after a successful strike.
e. The U.S. government, in order to support the domestic orange growers, grants a 50-cents subsidy for each bushel of orange grown in the country.
Macroeconomics
Advanced microeconomics (ECS4861) Assignment number 1
Macroeconomics
tell me how to calculate mpc and mps
Macroeconomics
In a two-sector model, demonstrate with the aid of appropriate diagram(s) that the three approaches of measuring national income of a country yield identical results.
Macroeconomics
Which of the following is/are an example of involuntary unemployment
A housewife
A student
A subsistence farmer
A pensioner
Non of the above
A housewife
A student
A subsistence farmer
A pensioner
Non of the above
Macroeconomics
What Economic systems/mechanisms or policies are needed to enhance the already existing business confidence of a country & positive growth outlook to yield tangible FDI & measurable economic growth?
