Economics Answers

Could you make a list and provide a brief description of some measures adopted by governments (/central banks) worldwide to support economy during Covid-19 pandemy? Explain the logic behind these monetary/fiscal- policy instruments using IS-LM model.

How would you describe the relation among interest rate (specify which one), GDP, unemployment rate, value of assets (common stocks, bonds, real estate etc.), firms‘ investment (you can add whatever variable you find relevant)?

 How can one measure a country’s GDP? What are its limitations as a measure of wellbeing? Do we have any alternative measurements of „wellbeing“?

How can one measure a country’s GDP? What are its limitations as a measure of wellbeing? Do we have any alternative measurements of „wellbeing“?

Why officially reported inflation rate does not have to properly represent inflation that an individual consumer faces?

 How the unemployment rate is measured using the ILO definition? Why such unemployment rate does not have to represent the „real“ number of available workers without a job.

 Explain what is the „CPI“ and how is it constructed. 

Discuss in detail the importance of reconciliation of account receivable and account payable account

For this question, refer to the article from The Economist magazine titled “A coup in Guinea adds fuel to aluminium’s red-hot rally”.

a) The article identifies a number of factors behind the recent increase in the price of aluminium. Mention these factors and indicate whether they are demand-side or supply- side factors.

b) With the aid of a well-labeled diagram, illustrate the effects of the factors identified in part (a) above on the equilibrium price and quantity of aluminium. Pay attention to the statement in the article that “Supply constraints, however, have been more

Liam is struggling to determine which deprecation method he should use for his new silk-screening machine. He expects sales to increase over the next five years. He also expects (hopes) that in two years he will need to buy a second silk-screening machine to keep up with the demand for products of his growing company. Discuss which depreciation method makes more sense for Liam:

• Higher expenses in the first few years, or keeping expenses consistent over time?
• Or would it be better for him to not think in terms of time, but rather in the usage of the machine?
• Please explain your choice.