Macroeconomics Answers

The demand management policies would not be productive in generating employment in the long run.Do u agree ? Give a detailed explanation .

suppose you are a monoipoliste and findthe demand elasticity of your product is different in two market what would be your pricing strategy answer?

Using the IS-LM model, if money demand is sensitive to interest rates and investment is not directly sensitive to interest rates. Monetary policy is more effective than fiscal policy. Right or wrong? Prove it. 

 If given the following information (Unit: RM million): Savings (S) = -500 + 0.15Yd Investment (I) = 400 - 150r Government expenditure (G) = 500 Taxes (T) = 200 + 0.1Y Money supply (Ms ) = 5000 Transaction money demand ( 𝑀𝑡 𝑑 𝑃 )= 0.25Y Speculative money demand ( 𝑀𝑠 𝑑 𝑃 ) = 500-250r Price level (P) = 2

(a) Derive the functions of IS and LM in terms of interest rate (r) and income (Y). (b) Calculate the slope of the IS and LM curves. (c) Determine the equilibrium of interest rate and aggregate output in the economy. (d) If the autonomous consumption has increases to RM500 million, i. Calculate the new level of economic equilibrium. ii. Calculate the size of the horizontal and vertical movements that occur. iii. Sketch the changes that occurred before and after the increase in autonomous consumption and explain.

Current macro economic indicators of the country chosen, current or past economic crisis (hyperinflation, massive unemployment, currency depreciation etc) or a positive economic event( rapid GDP growth). Discuss how the country overcame the crisis

Problem 1. Suppose we have the following data about a simple economy:

C = 10 + 0.75Yd

I = 50

G = T = 20

 (a) Find out the equilibrium level of national income.

(b) What is the size of the multiplier?

Using the AD-AS analysis. A rise in the repo rate will

How to calculate equilibrium income using the multiplier???

Mpc=0.75

Multiplier =4

Investment =200 million

Autonomous consumption =100 million

If a firm is operating in the area of constant returns to scale, what will happen to average total costs in the short run if the firm expands production? Why? What will happen to average total costs in the loge run? Why?

What is not a macroeconomic indicator?