Macroeconomics Answers

What is macroeconomics?
Thank you, experts.

The inverse demand and supply function for a commodity are give by:
PX=0.25QX+6.25 and,QX=2Px-5,respectively.
a.Determine the equilibrium price and quantity.
b.Show your result with the help of diagram.

In October 2008, Canadian consumer confidence plunged to levels last seen in the 1982 recession. According to some economic analysts, the global credit crunch and major stock market declines appear to have had an effect on Canadian consumer confidence

a. Explain the various factors that weigh down consumer confidence in 2008

b. a. If the economy was operating at full-employment equilibrium, what is the state of equilibrium after the fall in consumer confidence? In what way might consumer expectations have a self-fulfilling prophecy?

c.a. Why do changes in consumer spending play such a large role in the business cycle?

d. a. Explain how the economy can adjust in the long run to restore full-employment equilibrium. Draw a graph to illustrate this adjustment process.

Global Insight (GI) forecasting firm predicted that the Canadian economy will shrink by 1.4 percent on an annualized basis in the last quarter of 2008 and a further 1.2 percent in the first quarter of 2009. The firm sees substantial job losses as the recession takes hold.

a. a. What evidence does GI present to support the view that Canada had entered a recession?

b. Under what circumstances might the inflation rate not decrease during 2009?

In the broadest terms, an economy can face two possible problems-recession and excess inflation. Using your knowledge of fiscal and monetary policy, which do you think is more effective in dealing with each of these problems? Explain.

what is the difference between strict and broad rate of unemployment ?

suppose the economy is stagnant or deflationary and the government wish to stimulate it through stimulating demand, which fiscal policy tools could be implimented

Consider the rand/US dollar exchange rate.let's assume that at a given point in time the exchange rate is R6.50 to the US dollar.Assuming that the exchange rate is flexible, explain how the following occurrences are likely to impact on the exchange rate.in each case look at the market for US dollar,and use a graph to illustrate your explanation to questions..

a)The oil price increase and South Africa is a major importer of oil

b)Citibank,a large US bank buys Standard Bank

c)South Africa becomes the destination of choice for US tourists

d)the South Africa Reserve Bank increases the Repo rate

e)the US Federal Reserve (the central bank ) increases the interest rate

f)Speculators believe that the rand is overvalued and take positions in which they expect to profit from a depreciation of the rand.

1.2 what was the impact of the depreciation and the subsequent appreciation on (i) South Africa importers,and (ii) South Africa exporters?

in the broadest possible terms, an economy can face two possible problems-recession and excess inflation.using your knowledge of fiscal and monetary policy,which do you think is more effective in dealing with each of these problems?explain

illustrate and explain the demand management policies government can implement to close the inflationary gap in the economy?