Macroeconomics Answers

 If the reserve bank wants to pursue a contractionary monetary policy, the bank should 

Malaysia’s gross domestic product (GDP) is expected to grow between 6.5% to 7.5% in 2021. Specifically, the government’s Covid-19 stimulus packages are expected to contribute over four percent (4%) to GDP growth, the rest will be contributed by the 2021 Budget allocation. By taking into account the current economic condition, explain the contribution of the government’s stimulus packages and 2021 Budget to the demand for domestic goods.

a) “The United States is refusing to resume trade negotiations with China until Beijing comes up with a proposal to address Washington’s complaints about forces technology transfers and other economic issues. Trump administration plan to increase tariffs on US200 billions of Chinese imports to 25% on January 2019, from 10% in December 2018.”

i) Discuss the impact of the trade war to the international trade between China and the United States. (8 Marks)

ii) Provide three benefits of the trade war to Malaysian economy. Focus the answers on the macro perspective. (12 Marks)

b) However, in the November 3, 2020 election, Donald Trump lost to Democratic Party candidate Joe Biden. Analyze the possible changes for the president of the United States to the Malaysian economy. (5 marks)

What is macro economics multiplier

Taxes on subsidies on .... are taken into account when calculating GDP at basic prices

A. Product

B. Production

C. Commodities

D. Exports

   Maria can read 20 pages of economics in an hour. She can also read 50 pages of sociology in an hour. She spends 5 hours per day studying.

Unemployment and economic growth in Ethiopia

A consumer spend income 5000 on food and cloth draw the budget line and identify intercept food price is100 and cloth price is 250

Suppose the Ricardian Equivalence proposition holds. What does this imply about the ability of fiscal policy to affect GDP? Explain.

Explain the macroeconomic effects of a tax cut according to the Ricardian Equivalence proposition. Include in your answer the IS-LM graph that shows the effects of this tax cut.