Macroeconomics Answers

If the currency drain ratio in china and the united states is 10% of deposits, compare the money multipliers in the two countries.

qdus=5000-2p qsus=-3000+p

What was the market equilibrium price per metric ton of sunflower oil? how many billions of metric tons were sold at this price (what was the market equilibrium quanity) At this market price what were revenues for US sunflower oil produccers?

Consider the following economic data:

Unemployment rate= 5%
Inflation rate= 2%
Real GDP= $18 trillion
Growth rate= 2%
Natural rate of unemployment= 4%
Potential GDP= $20 trillion
Marginal Propensity to consume=.8

Based on the data, answer the following:

1. What data indicate there is a problem? Explain.

2. Identify what kind of GDP gap this economy is experiencing. Why is this a problem?

3. State a fiscal policy option to fix the problem. How will your proposal fix the problem?

4. State a monetary policy option to fix the problem. How will your proposal fix the problem?

5. Given the power of the multiplier, how much must spending change to reach potential GDP?

The AD curve describes a negative relationship between Y and P: This is because
(a) A higher P increases NX
(b) A higher P diminishes I
(c) A higher P increases G
(d) A higher P diminishes C

The U.S. and Canada are major trading partners. If GDP growth in the U.S. was smaller than GDP growth in Canada we should expect NX to
(a) Stay the same, since they are only driven by the exchange rate
(b) Increase since exports will grow more than imports
(c) Decrease since exports will grow less than imports
(d) Become equal to zero

What are the effect on macroeconomics in the world?

Use a four sector keynesian model to describe what effect a reduction in the exogenous components of investment and consumption?

Can you make recommendation about the proposals on the basis of GDP deflators?

Task 1 – Commercial banks in United Economy have total deposits of AED 300 billion. Their reserves are AED 15 billion, two- thirds of which are with the Central Bank as deposits. There are AED 30 billion notes outside the banks. There are no coins!

Calculate-
a) The monetary base.
b) The banks’ reserve ratio.
c) Currency drain as a % of deposits.

Following the recession years of 2007/2009, California faced a big drop in state taxes and responded with fiscal policies (it shut down state parks, increased tuition and fees in State and Community Colleges, laid off workers, and postponed projects). Some have argued that the State should have increased taxes on the rich and big business (fiscal policy). Others, have argued that the State should have sold bonds (monetary policy).
a. What do think would have been the best (of the three possibilities)?
b. Explain