Macroeconomics Answers

using the aggregate demand and short-run aggregate supply (AD-SRAS) diagram, explain the impacts on epuilibrium and real GDP when petronas discovers new oil reserves in pahang

using the aggregate demand and short-run aggregate supply (AD-SRAS) diagram, explain the impacts on epuilibrium and real GDP when increase in wage rates due to the implementation of mimimum wage policy

Determine the feasible space for the following constraint such that x and y are > or = 0
-3x+y> Or= 6

Monetary policy is used in many government as a stabilising factor and its tools. Discuss.

r =1.5 + 0.75 π

1. Using the formula from above, what is the Aggregate Demand function?

2-Suppose real money demand is describe by equation L(i,Y) = 8 - 2i + 0.5Y and assume that income is Y = $10 billion and real money supply is $7 Billion. What is the money demand formula?

3-What is the equilibrium (nominal interest rate?

4-If the central bank increases the real money supply to $4 billon calculate the new interest rate?

1- If actual production is Y=$6 billion, describe how will the economy return to the goods market equilibrium?

2- The government has been running deficits for the past year and decides it must balance the budget, so it increases taxes to $1.2 billion, Explain how this changes the IS curve?

A household consuming a bundle of goods X and Y such that MUX = 15 and MUY = 3 when the prices are such that pX = 5 and pY = 1 is maximizing its “utility”.

Assume that Country A has a population of 500,000 and only produces 1 good: cars. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfill all the demand. They decide to import 50,000 more. The government buys 25,000 cars for its police force, and 10,000 cars are bought by companies to transport employees to other locations to work. They also export 65,000 cars to nearby countries for sale. Discuss the following:
• What is Country A’s GDP?
• What is the composition of GDP by percentage?
• What is the GDP per capita?
• How does this relate to Keynesian economics?

what is saving

what is is and lm