Economics Answers

Explain briefly why a monetary contraction for a small open economy under fixed exchange rates will have no effect on real income.

Explain how inflation rate ,that is usually reported every month in the media ,is obtained .use hypothetical figures for calculations .

Consider the following numerical example of the simple keynesian model with no government spending ,taxes or foreign sector (all figures in R millions):
C=100 + 0,9Y
I=50
Answer the following question.
1- use a graph to illustrate the equilibrium level of output.

Consider the following numerical example of the simple keynesian model with no government spending ,taxes or foreign sector (all figures in R millions):
C=100 + 0,9Y
I=50
Answer the following questions.
1-calculate the equilibrium level of output.
2-in equilibrium , what is the value of consumption spending ?use this number to verify that the sum of C and I in equilbrium equals the value for equilibrium output you obtained above.
3-suppose the level of output that creates full employment in the economy is 1800.using the multipler ,determine the level of investment spending that would create full employment in this economy.

Consider the following numerical example of the simple keynesian model with no government spending ,taxes or foreign sector (all figures in R millions):
C=100 + 0,9Y
I=50
Answer the following questions.
1-calculate the equilibrium level of output.
2-in equilibrium , what is the value of consumption spending ?use this number to verify that the sum of C and I in equilbrium equals the value for equilibrium output you obtained above.
3-what is the value of the multiplier in this economy?

Emerging economies’ health systems have different needs from rich countries, primarily because:

a. They have less income

b. They have different population demographics and disease burdens

c. They have fewer medical schools and doctors

d. They have better weather and need less health care

Zara knows the average total cost and the average variable cost for a given level of output.
Which of the following costs can she not determine given this information?
1. total cost
2. average fixed cost
3. fixed cost
4. Zara can determine all of the above costs given the information provided

Question 1: Suppose that there is a decrease in government spending of $70 billion, and that the government spending multiplier is 2. How does the real GDP change? How is this calculated.

Question 2: Suppose that there is an increase in taxes of $42 billion, and that the tax multiplier is -1.5. How does the real GDP change? How is this calculated.

A firm has the following short-run production function: Q = 30L-2L2
a. Show the range of labor when stages I, II, and III of production occur.
b. If labor costs $20 per day, and the average price of service is $10, how many workers should the firm hire?

State the similarity and differences between a 'Big Push Model ' and 'O Ring Model '?