Macroeconomics Answers

The price will change automatically over time when the output equilibrium below the natural output. Discuss three (3) views related to the price movement. Support your answer with appropriate equation and graph.

(a) The existing debt would reduce the flexibility of budget arrangement, derive the evolution of the debt to GDP ratio (debt ratio) and explain the change in the debt ratio over time. (8 marks)

(b) Based on the answer in question (a), what is the determinant factors of change in the debt ratio and explain its implication briefly. (8 marks)

(c) Budget 2020 indicate a little bit changes on tax structure of Malaysia through the increasing tax rate of high income group from 28 percent to 30 percent; and reducing tax rate on small medium enterprise. Based on the economic growth equation, discuss the impact of debt restructuring to the target of being a developed nation by the year 2020. (9 marks)

Suppose there is a market demand fuction given by:p=30-1/2Qd,and market supply function :Qs=30+2p,what would be equilibrium price and quantity (respectively)

 If the reserve bank wants to pursue a contractionary monetary policy, the bank should 

Malaysia’s gross domestic product (GDP) is expected to grow between 6.5% to 7.5% in 2021. Specifically, the government’s Covid-19 stimulus packages are expected to contribute over four percent (4%) to GDP growth, the rest will be contributed by the 2021 Budget allocation. By taking into account the current economic condition, explain the contribution of the government’s stimulus packages and 2021 Budget to the demand for domestic goods.

a) “The United States is refusing to resume trade negotiations with China until Beijing comes up with a proposal to address Washington’s complaints about forces technology transfers and other economic issues. Trump administration plan to increase tariffs on US200 billions of Chinese imports to 25% on January 2019, from 10% in December 2018.”

i) Discuss the impact of the trade war to the international trade between China and the United States. (8 Marks)

ii) Provide three benefits of the trade war to Malaysian economy. Focus the answers on the macro perspective. (12 Marks)

b) However, in the November 3, 2020 election, Donald Trump lost to Democratic Party candidate Joe Biden. Analyze the possible changes for the president of the United States to the Malaysian economy. (5 marks)

What is macro economics multiplier

Taxes on subsidies on .... are taken into account when calculating GDP at basic prices

A. Product

B. Production

C. Commodities

D. Exports

   Maria can read 20 pages of economics in an hour. She can also read 50 pages of sociology in an hour. She spends 5 hours per day studying.

Unemployment and economic growth in Ethiopia