Economics Answers

1. Inflation is a sustained increase in the general or average level of prices. If now a day inflation in Ethiopia, how you prove it? At what percentage? Compare it with its base year. Hint: CPI

During the Covid-19 pandemic, Saudi government came up with various spending by giving various stimulus packages to both businesses and households to support them. However, in July 2020, the government also increased VAT from 5% to 15%.

i.                What fiscal policy action would you have expected from the government based on your knowledge of macroeconomics?

In a hypothetical economy Compensation of employees = $8874; Rents = 70; Interest = 605; Proprietors’ income = 1048; Corporate profits = 1627; Taxes on production and imports = 1009; Consumption of fixed capital = 1690; Net foreign factor income = 98; Statistical discrepancy = 26. Calculate, NI, GDP, NDP, PI and DI by using income approach. All figures are in Billions ($).

Suppose a particular consumer has 8 birr to be spent on two goods, A and B. The unit price

of good A is 2 birr and the unit price of B is 1 birr. The marginal utility (MU) she gets from

consumption of the goods is given below.

Suppose the government implements an expansionary fiscal policy to finance e-toll gantries. Required ∆Y = R1 000, the marginal propensity to consume is 50% and the proportional tax rate is 40%. How much will government expenditure have to change to reach the required change in equilibrium income?

2. Given two equations of the IS curve for a 3 sector economy:

IS₁ where Y = 2000 - 5000r

IS₂ where Y = 3000 - 5000r

a. Draw the curves IS₁ and IS₂ in a diagram using r = 5% and 10%.

b. Describe how the following factors shift the IS curve to the left.

i. Tax at once

ii. Use of autonomus

c. i. Calculate the gradients of the curves IS₁ and IS₂.

ii. Are these two curves parallel?

C = 200 + 0.75 Yd, (dengan Yd = Y – T)

I = 400 – 600r

G = 100

T = 20 

a. i. Derive the equation for the curve IS.

ii. Calculate the slope of the IS curve above.

b. i. Calculate the equilibrium value of income if the interest rates are 10 percent and 20 percent.

 ii. Based on the answer to question b (i), draw the IS curve.

The resource-based vuew of the firm is a new paradigm that suggests a firm's sustainable competitive advantage depend heavily on the form's resources and how they are used. Present the key concepts of these theoretical paradigm. Use examples to demonstrate related phenomena and discuss how they suggest directions for expanding the scope of optimisation models for supply chain management especially when they are linker to "shadow price" and taxonomy of resources. Additiomally discuss how these theoretical concepts can be used in economic interpretation of optimal solutions.

The supply chain database decision is a relatively new concept and is used to generate optimisation models that provide rigorous and comprehensive representation of the supply chain for the purposes of determining effective plans. Discuss the structure and data requirements of the main components of the supply chain database and its relationship to the transactional database

discuss principles of keynesian ant-cyclical fiscal policy