Macroeconomics Answers

A countrys long run equilibrium price level has increased, but the position of its aggregate demand schedule has not changed. What has happened and what factors could have caused this

what if I said I wanted to create a destination? How would we approach that?
Keeping up a city is a very good way to make it appealing. Would you be in favor of annexation to grow the city and its tax base and useable land to draw new companies in to increase employment, expand demand and increase the tax base? What sort of costs might that entail?

Consumers suddenly become more concerned about environment.
Supply or demand?
Increase or decrease?

Consumers expect car prices to rise in the near future.
Supply or demand?
Increase or decrease?

Producers expect car prices to rise in the near future. Is this supply or demand?

A flourishing economy increases consumers’ incomes. supply or demand?

Ÿ Households save 12% of their total income Ÿ Investment is given by� = 3500 − 10000�
Ÿ The tax rate is 20% Ÿ The real interest rate is 4% (r=0.4)
Ÿ Government expenditures are 2500
Ÿ Exports are 1900
Ÿ The import rate is 18%
a. Calculate the numerical value of the following and put your answer. You can show the
graph if you are able to draw using programs.
• Current level of investment
• Equilibrium aggregate demand
• Equilibrium personal saving
• The government budget surplus or deficit (indicate which) in equilibrium
• The change in equilibrium aggregate demand if the real interest rate rise to 8%

Ineffectiveness of fiscal policy under flexible exchange rate

Assume a model with no foreign sector, an income tax rate of 0.25, a consumption function defined as C = 680 + (0.8)YD and where autonomous investment, government spending and transfers are all equal to 100 and lump sum taxes are 200. What is the level of equilibrium income in this model economy?

what adverse effects might be caused by tax incentives to increase saving?