Macroeconomics Answers

how to calculate VA between two firms

Why do bond prices fall when interest rate rise?

Suppose Korea's new government increased VAT by 5% point. Explain the effect of tax increase using a D and S curves. Show how would this D and S change result in IS-LM analysis.

Which ONE of the following is the limiting factor to total production in an economy: A. Increase in tax rates B. Increase in consumer wealth

4. Imagine a society that produces military goods and consumer goods, which we’ll call “guns” and “butter.”
a. Draw a production possibilities frontier for gun sand butter. Explain why it most likely has a bowed out shape.
b. Show a point that is impossible for the economy to achieve. Show a point that is feasible but inefficient.
c. Imagine that the society has two political parties , called the Hawks (who want a strong military) and the Doves (who want a smaller military). Show a point on your production possibilities frontier that the Hawks might choose and a point the Doves
might choose.
d. Imagine that an aggressive neighboring country reduces the size of its military. As a result, both the Hawks and the Doves reduce their desired production of guns by the same amount. Which party would get the bigger “peace dividend,” measured by the increase in butter production?
Explain.

What is interest sensitivity of money supply and how would you treat it algebraically ?

Why can't business cycles fluctuate with the economic system? Why does it have to be the other way?

A decrease in the tax rates in an economy will cause a

Suppose a Canadian firm imports bananas of $1000 and sells them for $2000 the effect on gdp would be

real GDP has increased an average annual rate of about
real GDP per capita has increased at an average annual of about
The real GDP growth rate minus the real GDP per capita growth rate (i.e,c-d) equals the