Macroeconomics Answers

https://www.frbatlanta.org/-/media/documents/news/conferences/2010/chcs/shimer.pdf


In the attached paper, section 2.1 I am not being able to understand how the author calculated equation 3,4,5. If you provide a step by step answer would be great.

In the short run, an increase in the price of imported goods will cause
A) an increase in the interest rate.
B) a reduction in the price level
C) an increase in output.
D) all of the above
E) none of the above

Can you explain your answer as well?

1)American capitalism is not pure capitalism; it has become a "mixed" economy, largely because of defects or failures in the market system that Adam Smith did not foresee. What are these defects or failures that Smith didn't foresee? Discuss.
2) Income inequality in most European countries is smaller than it is in the US. Given all of the approaches and strategies available to the US (and to Europe) for improving income distribution, why do you think this is so?

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? b) What is the level of saving in this economy; clearly show how it’s calculated. c) What is the relationship of saving and investment? d) What is a leakage from the circular flow of income? e) Why is investment spending viewed as an injection into the circular flow of income? 10 marks

Zambia and Malawi are able to produce maize and fish using equivalent resources as shown below: 10 Marks
Zambia Malawi maize fish maize fish 10 0 50 0 8 2 40 5 6 4 30 10 4 6 20 15 2 8 10 20 0 10 0 25

a. Which country has an absolute advantage in the production of maize? b. Which country has an absolute advantage in the production of fish? c. Which country has a comparative advantage in the production of maize? d. Which country has a comparative advantage in the production of fish? e. Explain the reason for international trade based on comparative advantage?

Zambia and Malawi are able to produce maize and fish using equivalent resources as shown below:
Zambia Malawi
Maize Fish maize Fish
10 0 50 0
8 2 40 5
6 4 30 10
4 6 20 15
2 8 10 20
0 10 0 25

a. Which country has an absolute advantage in the production of maize?
b. Which country has an absolute advantage in the production of fish?
c. Which country has a comparative advantage in the production of maize?
d. Which country has a comparative advantage in the production of fish?
e. Explain the reason for International trade based on comparative advantage.

1. For each of the following cases, calculate the arcprice elasticity of demand, and state whether demandis elastic, inelastic, or unit elastic.
a. When the price of milk increases from $2.25 to$2.50 per gallon, the quantity demanded fallsfrom 100 gallons to 90 gallons.

How does immigration affect commerce?

Contrast the nominal GDP and real GDP. Why do economists consider real gdp as a more reliable measure for comparing changes in the production level over a series of years?

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?
b) What is the level of saving in this economy; clearly show how it’s calculated.
c) What is the relationship of saving and investment?
d) What is a leakage from the circular flow of income?
e) Why is investment spending viewed as an injection into the circular flow of
income?