Macroeconomics Answers

how can fed keep the economy from falling

Recession come at( which decline in spending is larger)

The Fed buys​ $5,000 of government securities. The required reserve ratio is​ 15%. Banks hold no excess reserves and there is no currency drain i.e. there are no leakages in the banking system.

​(A) As a result money supply will
A.
increase

B.
decrease


by ​$

nothing
. ​(Enter a numerical value here. Approximate your answer to a whole​ number.)

My area is a place where we only farm yam and other cash crops like cassava, rice and sugar cane, how can keynes model use to solve the economic challenges in the area to rise the economic growth

If the desired fiscal stimulus is $40 billion and the desired AD increase is $50 billion, we can conclude about the MPC and multiplier?

In the classical model of the labour market, voluntary unemployment will increase if:

In a certain economy marginal propensity to save is 0.2 and the autonomous consumption is 400
a)formulate consumption function
b)if the government expenditure is to increase were to increase by 50% what would be the resultant change in national income

There are seven producers in a small closed economy: producers of steel, machinery, rubber, tires, glass and cars and car dealers. Manufacturer of steel sells the steel to the producer of machines for 3 000 $ and to the carmaker for 4 000 $. The machine manufacturer sells its products to the producers of: cars (for 4 000 $), tires (for 2 000 $) and glass (for 500$). To produce cars, apart from steel, the producer of cars buys: tires (1 500$), glass (1000$). It sells the cars to the car dealers for 11 000 $. The tire manufacturer buys gum for 1000 $. Car dealer sells the cars to consumers for 15 000$.
1. Calculate GDP using the final expenditure approach (1 point)
2. What is the total value of production? Use a value-added approach to work out the answer. Explain the concept of value added? (1,5 points)

6. Suppose the information below characterizes an economy:
a. Construct the aggregate production function for this economy.
b. What kind of returns does this economy experience? How do you know?
c. Assuming that total available employment is 7 million, draw the economy’s long-run aggregate supply curve.
Suppose that improvement in technology means that real GDP at each level of employment rises by $200 billion.
a. Construct the new aggregate production function for this economy.
b. Construct the new long-run aggregate supply curve for the economy.

What assumptions need to be taken into consideration when drawing a PPF curve?