Macroeconomics Answers

In almost all cases, there is evidence of “a positive secondary price mark-up over face.” For example, “many $600 tickets sold for $2,000.” Explain what this means and why it is evidence of considerable consumer surplus at the set ticket prices

Assume that the Phillips curve is as follow: πt=πt^E + 0.2-4ut

πt = current rate of inflation

πt^E = expected rate of inflation

>>> Calculate the natural rate of unemployment rate (Un)

>>> Now, assume that inflation has been lower than expected by 2 percent points. Calculate the current unemployment rate and the natural unemployment rate.

Which is the LEAST liquid asset?
currencies
checkable deposits
small-time deposits
savings deposits

whats the most accurate definition of a currency crisis?

does innovation cause a firm in perfectly competitive market to hire more workers?

You are given the following information about an economy:
Gross Investment $40
Govt. purchases of goods & service 30
GNP 200
X – M - 20
Personal Tax 60
Govt. transfer 25
Interest payments from the Govt.
to domestic Pvt. Sector 15
Factor income received from the rest of the would 7
Factor payment made to rest of would 9
Calculate:
a. Consumption b) GDP c) Net factor payment from abroad
b. Pvt. Saving e) Public Saving.

How to formulate an economic question for a project paper?

Q1]

A corporation's stock promises to pay a dividend of $5 next year and investors expect the price of this stock next year to be $31. Because of the risk associated with this stock, investors require a rate of return of 20 percent from it. The price of this stock in the stock market is ( )dollars.

No comma, dollar sign, or decimal places.

Q2]


There are two assets in the market. They both promise to pay $1,120 next year. Asset A is less risky and carries a rate of return of 12 percent. The risk premium on Asset B is 16 percent. Therefore,

Price of Asset A = ( ) dollars

Price of Asset B =( ) dollars.

No commas, decimal places, or dollar signs.

Examine the progress of Indian economy towards globalisation in the post reform years . comment on the slow pace of progress on globalisation and identify the major reasons.

a. In a world with two large economies, what determines the world real interest rate?

b. what relationship between the current accounts of the two countries is satisfied when the world real interest rate is at its equilibrium valve?