Macroeconomics Answers

Does unemployment rate or general government revenue determine why investors should invest in the country? And why it affects?

The indeterminacy problem arises in neoclassical theory of investment because under this theory we want to determine both the rate of capital accumulation and the stock of capital from the same investment equation.What would be the correct option?
a)The statement is false
b)The statement confuses between stock and flow of capital
c)The statement is true

Discuss whether the best way for the UK government to cut it's budget deficit would be for it to raise it's spending and cuts.

Analyse the impact of a cut in government spending of 10 billion pounds if the multiplier is 1.5 rather than 0.5

If social welfare payment to the elderly is adjusted according to the increase in the CPI, explain whether the elderly would be better or worse off based on the CPI?

I have a past paper with a question on adaptive expectations and rational expectations which includes alot of maths. I am not that good at the maths. Would you be able to answer the questions.

Explain how both demand and supply factors are likely to the affect the price of rail tickets in the UK?

Explain how both demand and supply factors are likely to affect the price of rail tickets in the UK? Also are the answers below correct?


Population in the UK is increasing, which shifts the demand curve to the right. This means that there is an increase in demand which means people will purchase the rail tickets at any given price
If rail ticket prices increase, the demand will fall as people will go look for alternatives such as public transport or using a bicycle which would be cheaper

how would each of the following likely affect the natural
unemployment rate?
11 A new law prohibits people from seeking employment
before age eighteen
b A new Internet service, Findwork com, makes it
easy for people to check on the availability of jobs
al'Ound the country
c The length of time that unemployed workers can
receive government benefits increases from six
months to one year
d A shift in the public's buying habits greatly expands
the demand for sophisticated consumer electronics
while reducing the demand for tladitional consumer
goods and services, such as clothing and
restaurant meals
e Tight monetary policy, introduced to gel the inflation
rate down, drives the economy into a recession

use two graphs to depict the total cost structure and average and marginal cost structure for a typical firm in the short run respectively. the first graph should include total fixed cost. total variable costs and total cost, while the second graph includes marginal cost, average variable cost and average total cost