Economics Answers

Why have average hours worked per week declined?

Which of the following is/are not implied by the weak version of Say’s Law?

Using the Keynesian transmission mechanism, illustrate and explain the effect of an decrease of repo rate in the economy

2. Suppose autonomous expenditure increases by 1 trillion, and as a result, equilibrium income increases by 3 trillion, what is the value of the multiplier?
3. Using a diagram, show the effect of an increase in autonomous expenditure on equilibrium income and expenditure
4. Suppose net investment is R2 000 000 and depreciation is R140 000. What is the value of gross investment?
5. If real interest rate is 4 per cent, and inflation is 7 per cent, what is the value of nominal interest rate?
6. What relationship does the demand for money has with income and interest rate?

Consider the consumption function below and answer the questions that follow: C= 40 + 0.25YD

1.2. What is the value of autonomous expenditure?
1.3. What is the gradient of the consumption function?
1.4. What is the value of total consumption if disposable income is R2500?

Consider the consumption function below and answer the questions that follow: C= 40 + 0.25YD

1.1. Sketch the above function on a graph

Bank C promises to pay a compound annual interest rate of 6 percent, while Bank S pays an 8 percent simple annual interest rate on deposits. If you deposit $1,000 in each bank, after 10 years, your deposit in Bank C equals _____, while your deposit in Bank S equals

what is the diffrence between efficiency of labour and division of labour

A new government has been elected, largely on the platform of im- plementing a tax cut on top bracket earners with income above the threshold zT . They argued during the election campaign that this tax cut will stimulate the economy and will actually increase government revenue as a result. Everybody wins!
(a) Write down an expression for the average per person tax revenue generated from the top bracket. Define any variables you need.
(b) Determine an expression for the change in average per person revenue associated with a decrease in the top marginal tax rate as a function of the net-of-tax elasticity of taxable income (i.e., the elasticity with respect to (1 − t)). Show all of your work and explain intuitively what the expression means.

States like Georgia and Texas are trading partners with trading blocs such as ASEAN, the Association of Southeast Asian Nations. Why are these states such strong trading partners with ASEAN?