Macroeconomics Answers

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

The initial price of a good is 2.5X. A week later it drops 15%. A week later it drops another 20%. it still doesn't sell, so the manager marks it down an extra $10 in week 3. If you buy it for 30% of the original price, what was its price after the markdown in week 2?

Which policy would you like to adopt in the economy.Why?

1.Increase in taxation and transfer payment by same amount.

2.Increase in government expenditure and taxation by the same amount.
Support this answer with multiplier.

Suppose the product and money market model are given as;
S = -20+0.5Y Mt = 0.5Y
I = 200 - 2000i MSP = 100-1500i
Ms =150
Do you think the economy is in equilibrium ?Show the necessary calculations.

Hi, in lecture my professor said that when theres inflation, nominal GDP is greater than real GDP, why is that?

How do households of South Africa benefit from the country's international trade?

How can the high rate of inflation in a developing country like Uganda be solved?

Suppose the Federal Reserve requires the Bank of Red Sox (the only bank in existence) to hold 5 percent of deposits as reserves. How much in excess reserves does the Bank of Red Sox now hold

which policy wouldyou like to adopt in the economy.Why?

1.Increase in taxation and transfer payment by same amount.

2.Increase in government expenditure and taxation by the same amount.