Macroeconomics Answers

If two countries have the same unemployment rate, how can there by inflation in one country but deflation in the other? (Philips Curve)

explain why budget deficit is downward sloping.

consider an individual who moves to canada and bring with him $40,000 in canadian currency,which he deposits in a canadian bank.for each of the cases below,work out the first three steps of the money multiplier process after the individual deposited $40,000 into a canadian bank,and then use the money creation equation to compute the overall change in deposits and reserves in the canadian banking system as a result of this new deposits of $40,000.a)10% target reserve ratio; no cash drain;no excess reserve.b) 10% target reserve ratio;5%cash drain;no excess reserves.

Pakistan being a developing country has accumulate foreign borrowing historically. discuss its causes, effect on its macro economy and suggest some remedial measures that how can Pakistan get rid of external debt?

Explain how optimal efficiency is reached and why a company would want to do so.

Two economic indicators are Gross Domestic Product at market prices and Net National Income at factor cost. Explain what is meant by economic indicator and the differences between the two indicators mentioned.

In order to stimulate the National Economy, how should the government affect each of the main Variables in the National Income Model. Y= C+G+I+(X-M)?

How do I calculate equilibrium national income when given? For example:
I=500 , Autonomous Consumption c= 100, marginal propensity to income b= 0.5 , G= 400 ,(X-M)= 1000

Consider the supply of coffee. For each of the following events, will the current supply of coffee increase, decrease, or will supply remain unchanged? Identify the determinant of supply.
a) Coffee producers expect the price of coffee to greatly increase six months from now.
b) The price of labor in Brazil, a major coffee producing nation, has significantly increased.
c) The number of coffee producing nations has increased.
d) The price of coffee has decreased.

The inverse demand curve for a monopolist’s product is P = -2Q + 20. At which price is the
elasticity of demand equal to −1?