Economics Answers

Which will the best monetary policy in the context of a Real Business Cycle model?

. For the following LP problem, graph the region of feasible solution and solve by the corner-point method.
Maximize z = 4x1 + 8x2
Subject to 4x1 + 6x2 ≤ 48
x1 + x2 ≥ 15
x1 , x2 ≥ 0


For the following LP problem, graph the region of feasible solution and solve by the corner-point method.

Minimize z = 3x1 + 2x2
Subject to x1 + 2x2 ≥ 6
9x1 + 6x2 ≤ 108
x1 ≥ 8
x2 ≥ 4
x1 , x2 ≥ 0

To boost economic growth the government is most likely to...
1.reduce personal income tax.
2.increase taxes.
3.provide incentives to save (e.g; tax-free investment)
4.increase minimum wages in the private sector.

Which of the following indicators will most likely increase as a result of the increase in the U.S. poverty rate?

Life expectancy


Income polarization


Wealth mobility


Employment rate

Inflation is likely to...
1.reduce the cost of living.
2.raise the standard of living.
3.reduce the purchasing power of a currency.
4.increase the purchasing power of a currency.

explain with examples the market/task environment of a bank

Unemployment can decrease if...
1.there is an economic recession.
2.education system improves.
3.investment spending increase.
4.aggregate demand decrease.

To be counted into the pool of unemployment, a person must be:
1.any age 15 years.
2.discouraged work seeker
3.economically active.
4.hired and looking for a second job.

A. Which of the following best describe economic growth

1. An increase in real GDP per capita over time, where GDP per capita is real output divided by population
2. An increase in the value of final goods and services produced within the borders of the country in a one year period
3. A sustained increase in nominal GDP occurring over time
4. An absolute change of real GDP or real GDP per capita over time

B. In the AD-AS model, an expansionary fiscal policy may lead to a.......

1. Rightward shift of aggregate demand and demand-pull inflation
2. Leftward shift of aggregate demand and demand-pull inflation
3. Rightward shift of aggregate supply and cost-push inflation
4. Leftward shift of aggregate supply and cost-push inflation

A. The original Phillips curve......

1. Indicate the inverse relationship between the inflation rate and the unemployment rate
2. Illustrate the positive relationship between the inflation rate and unemployment rate
3. Shows the phenomenon of stagflation
4. Shifts to the right when aggregate demand increases

B. To reduce structural unemployment in South Africa, the government should....

1. Take steps to reduce population growth
2. Apply stricter immigration control
3. Raise taxes and increase government spending to boost aggregate demand
4. Make education and training available to everyone who is willing to improve their skills