Macroeconomics Answers

The financial crisis of 2008 caused macroeconomists to rethink monetary and fiscal policies. The true question is whether we are headed down the same path, and if the "victims" of the 2008 crisis have done anything to shift the tide?

What does the supply curve show?

Assume that a country has a growing budget deficit, carries a very large debt, is in a period of high unemployment with interest rates almost at zero, and annual inflation and GDP growth of about 2%

Make sure you include both the positive and negative effects of your actions, and include the trade-offs or opportunity costs

Discuss the dangers of a high debt to GDP ratio and a growing budget deficit and how this affects your policy recommendations

Assume that a country has a growing budget deficit, carries a very large debt, is in a period of high unemployment with interest rates almost at zero, and annual inflation and GDP growth of about 2%.

What is the first action you would take as the president? Why?

Australia can produce 50 barrels of ethanol or 30 tonnes of wheat a day, while the United States can produce 120 barrels of ethanol or 20 tonnes of wheat a day.
(b) Initially, both Australia and the US spent half a day producing ethanol and half a day producing wheat. However, they now decide to specialise in producing the product that they have a comparative advantage and trade their products in the world market. What are the total gains from trade?

whats the trade off in achieving economic growth

"At the moment, the market is completely ignoring things like record US trade deficits and the widening current account deficit. It is also largely ignoring the possibility of Federal Reserve rate cuts. Traders and investors are instead focusing only on the fiscal and monetary easing in Japan and monetary easing in Germany."

a. In what way is fiscal easing in Japan relevant here?

b. In what way is monetary easing in Germany relevant here?

using the keynesian cross model, do unplanned changes in inventory are counted as investment spending by firms?

Chapter 4 Homework
28. Identify each of the following as involving either
demand or supply. Draw a circular flow diagram and
label the flows A through F. (Some choices can be on
both sides of the goods market.)

a. Households in the labor market Supply

b. Firms in the goods market Supply

c. Firms in the financial market Supply

d. Households in the goods market Demand

e. Firms in the labor market Demand

f. Households in the financial market demand

The comparison of Gross Domestic Product (GDP)between two countries and its reasons.Which is Japan and Indonesia, 2004-2014