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Macroeconomics
what effects would each of the folowing have on aggregate demand or aggregate supply?
1. A widespread of depression on the part of the consumer
2. An U$ increase in the excise tax on a pack of cigarettes
3. A reduction in the interest rate at each price level
4. The expectaion of rapid inflation
1. A widespread of depression on the part of the consumer
2. An U$ increase in the excise tax on a pack of cigarettes
3. A reduction in the interest rate at each price level
4. The expectaion of rapid inflation
Macroeconomics
Offshore Petroleum's fixed costs are $2,500,000 and its debt repayment requirements are $1,000,000. Selling price per barrel of oil is $18 and variable costs per barrel are $10. (a) Determine the breakeven output (in dollars). (3 marks) (b) Determine the number of barrels of oil that offshore must produce and sell in order to earn a target (operating) profit of $1,500,000. (3 marks) (c) Determine the degree of operating leverage at an output of 400,000 barrels. (3 marks) (d) Assuming that sales of oil are normally distributed with a mean of 362,500 barrels and a standard deviation of 100,000 barrels, determine the probability that Offshore will incur an operating loss.
Macroeconomics
What effects would a widespread fear of depression on the part of consumer have on aggregate demand or supply?
Macroeconomics
Suppose
C=50+0.8Y
I=70
G=200
TR=100
t=0.2.
a) Calculate the multiplier and the level of equilibrium income
b) calculating the budget surplus (SP)
c) Assume that t rises to 0.25. What's the new equilibrium income and the new multiplier?
d) Calculate the variation of the budget surplus, would the variation of the surplus be higher or lower if c = 0.9 instead of 0.8.
C=50+0.8Y
I=70
G=200
TR=100
t=0.2.
a) Calculate the multiplier and the level of equilibrium income
b) calculating the budget surplus (SP)
c) Assume that t rises to 0.25. What's the new equilibrium income and the new multiplier?
d) Calculate the variation of the budget surplus, would the variation of the surplus be higher or lower if c = 0.9 instead of 0.8.
Macroeconomics
briefly discuss two other complications that the minister of finance should consider in the implementation of fiscal policy ( excluding crowding out and net exports).
Macroeconomics
Suppose real GDP is growing at 4%,the money supply is growing at 11%,the velocity of money is constant,and the real interest rate is 6%. 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 answers in part(a) change?
c. If you were an investor, how would the change in the money supply growth affect your real profitability,assuming that you now receive the new nominal interest rate?
d. Based on your previous answers,would you prefer a fixed or a floating interest rate on your investments? Which would you prefer if you thought the money supply growth was going to be reduced?
b. If the money supply growth rate increases to 15 percent,how will your answers in part(a) change?
c. If you were an investor, how would the change in the money supply growth affect your real profitability,assuming that you now receive the new nominal interest rate?
d. Based on your previous answers,would you prefer a fixed or a floating interest rate on your investments? Which would you prefer if you thought the money supply growth was going to be reduced?
Macroeconomics
given Investment = 900, consumption=600+0.6yd
calculate the the equilibrium level of income
calculate the the equilibrium level of income
Macroeconomics
the slope of the consumption function is measured by the marginal propensity to save. true or false
Macroeconomics
1. if the economy is suffering a recession inventories are probably falling. true or false?
2. producers will change their prices when GDP is at equilibrium level. true or false?
3. when income rises, total expenditures remain constant. true or false?
2. producers will change their prices when GDP is at equilibrium level. true or false?
3. when income rises, total expenditures remain constant. true or false?
Macroeconomics
Explain why it is not a sustainable policy to attempt to keep unemployment below its natural level according to the augmented Phillips Curve model?
