Macroeconomics Answers

2. If 12% of a population of parts is defective, what is the probability of randomly selecting 60 parts and finding that 8 or more are defective?

Using the current income tax ordinance calculate the amount tax paid by an individual who is earning 50000 per month.

Consider the monopoly version of the hidden information problem. Suppose that both agents have the same cost function but different reservation levels of utility. How does the analysis change?

Discuss the monetary approach to the balance of payment. Use graphs also to demonstrate your discussion.25 marks

Differentiate between partial and multiple correlation

Consider a government spending program you have read about in the news or research one online. In a well-composed post, explain the opportunity cost of that government decision. What was the next best alternative in your opinion? Describe how “scarcity” factors into the decision process. (Remember that all things are scarce.)

Calculate the GDP using EXPENDITURE APPROACH with the following hypothetical data:

Personal Consumption 3657

Depreciation 400

Wages 3254

Indirect Business Taxes 500

Interest 530

Domestic Investment 741

Government Expenditure 1098

Rental Income 17

Corporate Profits 744

Exports 673

Imports 704

Net Factor Payment 20

what are the effects of the deficits and debt on the stability of exchange rates?

what determines the rate of growth in output over periods of one or two decades? Over longer periods such as a century?

what relationship exists between inflation and unemployment?