Macroeconomics Answers

Suppose eal GDP is growing at 4 percent, the money supply is growing at 11 percent, the velocity of money is constant, and the real interest is 6 percent.
A) what is the current inflation rate and nominal interest rate?
B) if the money supply growth rate increases to 15 percent, how will your answer in part (a) change?
C) if you were an investor, how would the change in the money supply growth affect your real profiability, assuming that you now receive the new nominal interest rate?
D) based on your prwvious answers, would you prefer a fixed or a floating interest on your investment?

What effects would each of the following have on aggregate demand or aggregate supply?
A) a widespread fera of depression on the part of the consumer.
B) an N$ increase in the excise tax on a pack of cigarettes.
C) a reduction in the interest rate at each price level.
D) the expectation of rapid inflation.

assume the population is 2000 in year 1 and 1020 in year 2. what is the growth rate in GDP per capita?

what effect would the expectation of rapid inflation have on aggregate demandor aggregate supply?

suppose real GDP is growing at 4 percent, the money supply is growing at 11 percent, the velocity of the money is constant,and the real interest is 6 percent. what is the current inflation rate and nominal interest rate?

what are the other complications that the minister of finance should consider in the implemetation of fiscal policy?

suppose real GDP is growing at 4 percent, the money supply is growing at 11 percent, the velocity of money is constant, and the real interest rate is 6 percent.

a) what is the current inflation rate and nominal interest rate?
b)if the money supply growth rate increase to 15 percent, how will your answers in part(a) change?

1. using the AD-AS model show how the Australian economy has continued to expand year after year. What are the macroeconomic dangers facing Australia? That is, are there any dark clouds, be they domestic or international ones, which could threaten the Australian economy?
2. The central bank decided to implement an expansionary policy action. What would you expect to happen to the nominal interest rate, the real interest rate and the money supply? Under what economic circumstances would this type of policy action be most likely appropriate for the country?
3. why has the Australian dollar soared over the past five years? What are the domestic economic repersussions for producers and for consumers? Thank you for your answer and help. best regards!

1. Consider a macroeconomy was initially at equilibrium level of real GDP. Using an aggregate demand and aggregate supply diagram or model of the economy, graphically illustrate and discuss the short-run and long-run effects of the following events upon the economy:
(a) The Central Bank within the economy lifts interest rates. (b) There is an increase in private domestic investment spending. (c) An increase in international oil prices. (d) An appreciation in the foreign exchange rate value of the economy’s currency. (e) A fall in real estate prices in the capital cities of the country (hint: think of the effect upon one’s wealth level) (f) The country main exports fall in price while the goods the country imports from abroad rise in price
2. Collect an article from an Australian newspaper that relates to the current macroeconomy. In a paragraph indicate which section of the course it applies to, why you selected the article and provide a brief summary of what the article is about