Macroeconomics Answers

An entrepreneur wanting to buy the machine and use it for three years , is intended to receive the income of 2 million dollars. , And this income is distributed as follows : in the first year - 400 thousand dollars. , The second - 1 million dollars. , in the third - 600 thousand dollars. It is known that the interest rate is 8 %. What will be the purchase price of the machine ?

In year 1, your annual income is $45,000 and the CPI is 143.6; in year 2, your annual income is $51,232 and the CPI is 150.7. Has your income risen, fallen, or remained constant? Explain your answer.

Consider the following closed economy with zero inflation where the price index is 1. Consumers always spend 50 percent of their disposable income. Businesses invest $200 when the real interest rate is 0 and reduce investment by $25 for every 1 percentage point rise in the real interest rate, r. Government purchases are $200 and taxes are $200. The central bank sets the nominal interest at 4% per year plus inflation plus 1% for every point that inflation is over 0% per year. However, like the ECB, the central bank has a single mandate, inflation, and does not change the interest rate with changes in output.
a. Write the equations of the IS curve and the MP curve.
b. Find the equilibrium real interest rate (r) and the equilibrium level of national
output (Y).
c. Suppose that government purchases are raised from $200 to $350. Graph the IS
curve shift. What are the new equilibrium interest rate and level of output?
d. Suppose that inflation rises to 2% per year. What are the effects on the MP curve
and on the equilibrium output?

the australian dollar has fallen by 10 US cents in the last few months.what are the macro economic consequences of this currency movement?

many people find the current unemployment figures in australia at 5.5% unbelievable.why is this? why might the official statistics be inaccurate?

An increase in the price of good x and its effect on the supply of the good? increase, decrease or no change at all?

why might it be difficult to establish the extent to which a given rate of inflation is either demand pull or cost push??

The total cost function of a firm is given by c=x^3 - 5x^2 + 60x,where C is the cost in rupees and X is the number of units produced.
Derive Average cost function.

Country A and country B produce the same consumption good and capital goods and currently have identical production abilities curve they also have the same resources at the Present and have access to the same technology. At present, does either country have a comparative advantage in producing capital goods? Consumption goods?