Macroeconomics Answers

Currently Australian consumers are paying off their debts and not spending. Using the simple Keynesian model to assess the implications for equilibrium GDP and the level of savings of an increase in the savings function

1. Which of the macroeconomic models is much more suitable than any other to test for whether technological progress has taken place or not?
2. In a computable general equilibrium model, base year price is .............
3. At a given level of capital per head or labour, an improvement in technology will result in ...............
4. Give the three basic uses of macro econometric models.

Given the following information about a closed oil-rich economy which does not impose any tax on its citizens to finance its expenditure, you are required to derive mathematically and explain using graphs the impact of a change in each of the key exogenous variables on the endogenous variables.
Y = C + I + G
C = C(Y), I = I(r), G = Go, Md = L(Y,r)

Between 2000 and 2013, in how many years was fiscal restraint initiated?

Lucas' point of view, what are the limitations of Keynesian model?what limitations does he suggest?

If a nation produces more consumer goods and less capital goods, then the nation will have:

Under what circumstances might it be possible to reduce inflation without causing a recession?

How does sacrifice ratio estimate the cost of reducing inflation?

Consider the following Cobb-Douglas production function:
Y = 10(K^0.8L^0.2)
Recall that in the generic Cobb-Douglas production function
In this economy, the demand for labor is:

Consider the Cobb-Douglas production function. If the stock of labor in the economy increases
while the stock of capital remains unchanged:
a. the equilibrium real rental rate of capital will decrease.
b. the equilibrium real wage will increase.
c. the demand curve for capital will shift up.
d. the demand curve for labor will shift up.