Economics Answers

Use the model of aggregate demand and short run aggregate supply to explain how an increase in government purchases affects real GDP and price level in shortrun

Apply your knowledge of the AD/AS model to predict the effect on economic variables of some events on the U.S. economy. Diagram the effect of the following events. Explain the effects in the short run and effects in the long run . Assume that the economy starts at long-run equilibrium.
d.Suddenly, foreign countries sell great quantities of important inputs such as steel and computer chips at very low prices in this country.long-run effect will depend on whether the price decrease is permanent or not.

Discuss the impact of changes in global trade and investment on the global economy.

In Goa, India, the multiplier effect of iron ore exports is calculated to be 1.62 (Ta, 2003). Calculate the impact of an additional 1,000 rupees of iron ore exports on the economy of Goa.

2. Use the model of aggregate demand and short-run aggregate supply to explain how each of the following would affect real GDP and the price level in the short run.

an increase in government purchases
a reduction in nominal wages
a major improvement in technology
a reduction in net exports

3. The United Kingdom (UK) held a national referendum (vote) on whether the UK should remain in the European Union (EU), or should exit the EU. Exiting the EU is likely to have several consequences: (1) increased barriers to trade between the UK and the remaining EU countries; (2) Reduced refugee flows.

Use the AS/AD model to describe the short run and long run effect of the UK exit from the EU.

Qd = 5 - P , and Qs = -5 + P, then equilibrium price and quantity will be

He demanded and supply equetions for commodity Y are represented by
D=20-1/6p
S=18-1/8p
Required given that equlibrum price and quantity for commodity Y in a price market.

To determine gross national product

2. Apply your knowledge of the AD/AS model to predict the effect on economic variables (i.e., P, RGDP, interest rates, wages, savings and spending) of some events on the U.S. economy. Diagram the effect of the following events. Be sure to explain the effects in the short run and effects in the long run for each question, in words. To keep things clear, assume that in each case the economy starts out at long-run equilibrium.
c. The government increases both taxes and spending by $500 billion. The money is spent domestically. Hint: Be sure to provide a strict interpretation of the AD/AS model as part of your answer.

Prepare the cash flow statement from investing activities of Alpha Creative Ltd for the year ended March31, 2019 -

Particulars Amount

Plant acquired 160000

Claim received for loss of plant in fire 45500

Unsecured loans given to subsidiaries 595000

Interest on loan received from subsidiary companies 72500



• Also give reasons for the classification of above activities as inflow /outflow

Having economic data is good for historical knowledge, but it is also essential to attempt to predict future economic activity. Based on the information you found in task 1, compose a 200- to 300-word essay that predicts what you think will happen to the economy in the next year. Use at least five statistics you recorded in task 1 to justify your answer.