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Hybrid Dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20% according to the diminishing balance method.
Required:
Prepare the depreciation and closing transfer entries in the general journal of Hybrid Dealers on 31 March 2019 and 31 March 2020.
A is the branding manager in his company and one of her asks is to convince
buyers that her company’s product is different from those offered by rivals.
B is the sales manager and his company doesn’t even have a branding manager to work with in such a capacity. The company doesn’t think it is necessary.
State the reasons and theories involved. Use diagrams to illustrate your answer
Given a is a non income tax b is income tax & is marginal propensity to consume y is autonomous consumption t tax y national income i0 investment and g0 government spending
Formulate the equilibrium to find the reduced form of equilibrium income Ye
An economy's aggregate demand curve (the relationship between short-run equilibrium output and inflation) is described by the equation:

Y = 11,000 - 17,000π, where π is the inflation rate.

Initially, the inflation rate is 3 percent or π = 0.03. Potential output Yp equals 10,660.

Note: Keep as much precision as possible during your calculations. Your final answer for inflation should be accurate to at least two decimal places and output should be accurate to the nearest whole number.

a) Find inflation and output in short-run equilibrium.
b) Find inflation and output in long-run equilibrium
Illustrate a permanent decrease in government spending
(let’s say infrastructure spending freeze) implemented in 2022. For simplicity,
assume there are no time lags. Now, illustrate that counter-cyclical monetary policy has been
implemented by the central bank. Again, use AE/PC Model (new set of graphs!).
Now your initial point is point B, mark the response as point C. There should be a
points B and C on both the upper graph and the lower graph, even if they are in the
same location. You can stop your analysis when the economy is stabilized (Y=Y*
again).
__________________________________________________________________
Illustrate a permanent decrease in government spending
(let’s say infrastructure spending freeze) implemented in 2022. For simplicity,
assume there are no time lags.
a). (2 point): To illustrate that shock, use AE/PC Model (carefully labeled!!)
without time lags (use the AE and PC graphs similarly to the textbook, place PC
graph below AE graph). For your analysis, choose as a starting point (marked A)
an economy operating at potential GDP (Y=Y*) and at its inflation target (
Assume that two shocks happen simultaneously: a positive expenditure shock (buy a bigger house) and a positive supply shock (prices on imported inputs decreased dramatically due to a substantial reduction in tariffs). Use AE/PC Model without time lags (use the AE and PC graphs similarly to the textbook, place PC graph below AE graph). For your analysis, choose as a starting point (marked A) an economy operating at potential GDP (Y=Y*) and at its inflation target (
Suppose the federal fund rate is currently 2% and the term
premium between the federal funds rate and the 1-year rate is equal to 1 percent.
Also, suppose that it is expected that the FOMC will increase the federal funds rate
3 months from now by 50 basic points. Everything else held constant, what is the
value of the 1-year interest rate today?
__________________________________________________________________
Suppose the federal fund rate is currently 2% and the term
premium between the federal funds rate and the 1-year rate is equal to 1 percent.
Also, suppose that it is expected that the FOMC will increase the federal funds rate
3 months from now by 50 basic points. Everything else held constant, what is the
value of the 1-year interest rate today?
__________________________________________________________________
1. Consider two firms that produce a single output good, y, using two inputs: Capital, K, and labor, L. the prices of each unit of capital and labor are r and w, respectively. The output good y sells for $p per unit.
Firm A’s production function is y = fA(K,L) = K1/4 L1/4. The profit function is thus:
A(K,L) = K1/4 L1/4 – rK -wL

a. Find the profit maximizing levels of K and L as functions of r, w, and p
b. Suppose that r = w = $1 and p = $4. What is the profit maximizing level of output, y?
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