Macroeconomics Answers

Lonewolf Ltd is the sole manufacturer and supplier of a sonar panels in the country. As a result of this the CEO claimed in a recent meeting that he can set any price he wishes and sell as many units if his products as he wants at that price. Is this correct?

i need proper answer please

Consider a closed economy to which the Keynesian-cross analysis applies. Consumption is given by the equation C = 200 + 0.75(Y – T), where Y represents income and T represents taxes. Planned investment is 300, as are government spending and taxes.
a. What is the planned expenditure function? What is equilibrium level of income?
b. If Y is 1,500, what are planned aggregate expenditures? What is inventory accumulation or
deacumulation? Should equilibrium Y be higher or lower than 1,500?(equilibrium; hint; planned expenditure=Y, and inventory =Y-planned expenditure)
c. What are equilibrium consumption, private saving, public saving, and national saving?hint:private saving=Y-C-T
public saving=T-G
equilibrium saving=Y-C-T

d. How much does equilibrium income decrease when G is reduced to 200?
What is the multiplier for government spending?

8. There are several motives for holding assets in the form of money. What are they? Provide an example of each.

Describe a discretionary fiscal stimulus package that could be used that would not bring an increase in the budget deficit.

A discretionary fiscal stimulation package that would avoid a budget deficit is a simultaneous and equal​ ______.    

A.
increase in government expenditure and an increase in taxes
B.
increase in transfer payments and a decrease in taxes
C.
decrease in transfer payments and increase in the quantity of money
D.
decrease in government expenditure and taxes
Explain the risks of discretionary fiscal policy in this situation

Discretionary fiscal policy is risky because it is hampered by all of the following lags except​ ______.

A.
​law-making lag
B.
recognition lag
C.
impact lag
D.
business cycle lag

The economy is in a recession and the recessionary gap is large.
  
Describe the discretionary and automatic fiscal policy actions that might occur.
Discretionary fiscal policy that might occur is​ ______.
Automatic fiscal policy that might occur is​ ______.  
A.
a decrease in transfer payments and an increase in taxes with no interference by​ Parliament;
a decrease in government expenditure and an increase in taxes by a decision of Parliament
B.
an increase in transfer payments and a fall in taxes with no interference by​ Parliament;
an increase in government expenditure and a cut in taxes by a decision of Parliament
C.
an increase in government expenditure and a cut in taxes by a decision of​ Parliament;
an increase in transfer payments and a fall in taxes
D.
a decrease in government expenditure and an increase in taxes by a decision of​ Parliament;
a decrease in transfer payments and an increase in taxes with no interference by Parliament

The economy is in a recession and the recessionary gap is large.
  
Describe the discretionary and automatic fiscal policy actions that might occur.
Discretionary fiscal policy that might occur is​ ___

Allowing firms to charge a price above the marginal cost is important to promote innovations in the economy. Explain.

Lonewolf Ltd is the sole manufacturer and supplier of solar panels in the country. As a result of this the CEO claimed in a recent meeting that he can set any price he wishes and sell as many units of his products as he wants at that price. Is this correct? Motivate your answer.(7) marks

1.what determines the amount of output in the economy?
2.explain how a competitive,profit-maximizing firm decides how much of each factor of production to demand.

Suppose the banking system as a whole has $6800 billion in deposits and $45 billion in reserves, with a reserve ratio of 10 percent. What happens to the stock of money if the Central Bank of The Bahamas increases reserve requirements by changing the reserve ratio to 5 percent?