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A key feature of macro economics model is whether it assumes that prices are flexible or sticky. According to most macro economists,models with flexible prices describe the economy in the long run,whereas models with sticky prices offer a better description of the economy in the short run. Which one of thoughts described above do you support?why?support your answer with evidence.
A farmer grows a bushel of wheat and sells it to a miller for 100 dollar. The miller turns the wheat into flour and sells the flour to a baker for 300 dollar. The baker uses the flour to make bread and sells the bread to university for 600 dollar. The university students eat the bread. What is the value added by students?what is GDP in this case?
Find a data on GDP and its components,and compute the percentage of GDP for the following components for the years 1950,1975,and 2000.
A. Personal consumption expenditure
B. Growth private domestic investment
C. Government purchases
D. Net exports
E. National defence purchases
F. State and local purchases
G. Imports
Find a data on GDP and its components,and compute the percentage of GDP for the following components for the years 1950,1975,2000.
A. Personal consumption expenditure.
B. Growth private domestic investment .
C. Government purchases.
D. Net exports
E. National defense purchases
F. State and local purchases
G. Imports
Explain the relationship between inflation and unemployment, both in the short run and long run.
During the Revolutionary War, the American colonies
could not raise enough tax revenue to fully fund the
war effort. To make up the difference, the colonies
decided to print more money. Printing money to cover
expenditures is sometimes referred to as an “inflation
tax.” Who do you think is being “taxed” when more
money is printed? Why?
To
Explain the following terms and give example for each when necessary
1) GDP AND GNP
2) Approaches of measuring GDP
3) Unemployment and its type
4) Inflation and its type
5) Fiscal policy and tools
6) Monetary policy and tools
7) Objectives of Macroeconomic policies
1. A tour operating firm plans to take tourists between Addis Ababa and Jimma. its estimated cost function given by C =100 +50 N+4N2 (Where N denotes the number of passengers per day)
A. State the average cost function.
B. State the marginal cost of the average cost function.
C. Find the number of passengers per day that minimize average cost.
D. What is the minimum average cost at the optimal level of passenger?
E. What will be the total cost at the optimal level?
Suppose that the demand and supply for milk for Furi dairy farm is given by
where the quantity is in liters and the price is in birr per liter. Assume there is no import or export of milk.
A) Find the market equilibrium quantity, and the equilibrium price.
B) Find the consumer and producer surplus at the market equilibrium that you found in part (a).
C) Assume now that there is a price floor of 36 birr per liter. What is the new quantity sold in the market?
Given the following information answer each of the following questions: - Ca=20 c=MPC=3⁄4 Ia =I=20
