Macroeconomics Answers

In a private closed economy, When aggregate expenditures equal GDP _______
A planned investments equals saving
B disposable income equals consumption minus saving
C consumption equals investment
D consumption equals aggregate expenditure

VARIABLES OF MACROECONOMICS

four factors of shifting IS curve

Why should taxpayers subsidize public colleges and universities what external benefits are generated by higher education ?

A firm’s demand function for good x is estimated as follows:-

Qx = 1800 –1/4Px + 1/8Py – 1/3Pz + 1/5Y

Where Qx represents quantity demanded of good x, Px is price of good x, Py is price of good y, Pz is price of good z and Y is income.
Explain whether goods Y and Z are substitutes or complements for good X. (5 marks)

Discrimination. Let Wf denote wages actually paid to women, Wm
wages actually paid to men, and d the discrimination coefficient. Assume
the type of (employer) discrimination analyzed by Becker where firms act
as is they pay Wf (1 + d) when they hire women and Wf when they hire
men.
(a) Define discrimination in the labour market.
(b) In the case where the value of the marginal products of male and
female labour are the same, solve for the ratio of female to male
wages when the discrimination coefficient is 0.20.
(c) What is the wage gap, due to discrimination, in this case?
(d) Explain Becker’s theory. What is meant by a discrimination coefficient
that is 0.20?

Where along a straight-line demand curve does consumer spending reach a maximum?Explain why. What use is this information to the owner of a football club?

Your fruit stall has 100 peaches that must be sold at once. your supply curve for peaches is vertical. From past experience, 100 peaches are demandes when price is £1.
The demand elasticity is -0.5. You discover 10 of your peaches are rotten and cannot be sold. Draw the new supply curve. What is the equilibrium price? Explain your answers in details.

Because fluctuations in the world oil price make the U.S.​ short-run macroeconomic equilibrium​ fluctuate, someone suggests that the government should vary the tax rate on​ oil, lowering the tax when the world oil price rises and increasing the tax when the world oil price​ falls, to stablize the oil price in the U.S. market.
If this suggestion is​ implemented, when the world price of oil​ ______, aggregate supply would​ ______.

19. If Canada is the most important trading partner of the United States, what effect will stagflation in Canada have on aggregate demand in the U.S.?

A. The effect will be indeterminate.
B. It will increase aggregate demand in the U.S.
C. It will decrease aggregate demand in the U.S.
D. It will increase aggregate demand in the U.S. if the decrease in Canadian output is large enough.
E. It will increase aggregate demand in the U.S. if the decrease in Canadian unemployment is very large.