Macroeconomics Answers

Discuss in terms of the definition of gross income and any special inclusion if the scenarios above relate to gross income. Consider the effects of any exemptions if applicable

Expalin how inflation unemployment trade off is not possible in the long run.

explain the significance of inflation and stock market indices to open economy as compared to a closed economy

3. In a circular flow of income and spending
a. the flow of income is in the same direction as the flow of spending.
b. the firms' spending represents the expenditure of the households.
c. the firms supply goods in the factor market and households buy these goods in the
goods market.

[1] None of the above statements
[2] a
[3] b
[4] c
[5] All the statements are correct

What is the diffrent between macroeconomics and microeconomics ?

which country has absolute advantage in the production of maize?

Explain why cuts in public expenditure are likely to reduce aggregate demand?
Please explain this in detail.

a) Consider the formula: . 4,2,1,0, 21 )( 2  x x XP Is ) (xP a probability mass function? If so, show the distribution of X in tabular form, and compute the expected value of X and its variance. b) The chairperson of the Finance Committee believes that 25% of the members of the committee will strongly support the tax proposal she wishes to advance. Suppose that this belief is correct and that five members are approached at random. What is the probability that a majority of the five will strongly support the proposal? (6 Marks)

Suppose, in a two sector model comprising consumers and firms, that the individuals receive the following payments for their provision of goods and services: wages K60000, interest K30000, rent K10000 and profits k8000. Consumption spending is K101000, planned investment expenditure is K20000 and actual investment expenditure is K7000.
a) What is the equilibrium output

If the discretionary income in a nation rises from $13 trillion to $15 trillion and consumption spending increases from $12 trillion to 13.5 trillion what is the marginal propensity to consume?