Economics Answers

A policy maker deciding how to find as the construction of a new airport he can eat the pay for it by increasing citizens taxes or by printing more money what are some of the short run and long run consequences of each option

Drawing diagram explain the process of crowding out. Also explain why the private sector might find budget deficit detrimental to their business planned projects.

Managers and owners of business may not have same objective . explain with possible conflicts of interest

Financial services sector can be divided into three groups of institutions, those engaged in deposit taking, contractual savings and other investment funds.Discuss

4. The official unemployment rate understates the unemployment level in the economy because the official unemployment rate:

A. ignores the duration of unemployment.

B. ignores underemployed and discouraged workers.

C. includes jobs created by the underground economy.

D. excludes all unemployed teenagers.

E. excludes frictional unemployment.

what will happen to the equilibrium quantity and equilibrium price of renewable energy resources if energy sector improves the technology

1.     In national income accounting, consumption expenditure includes the purchase of:

A.   both new and used consumer goods.

B.    cars and new houses.

C.    non-durable goods and services.

D.   capital goods.

E.    used goods that were produced in the current year.

Q.1 a) According to the misperceptions theory, what effect does a reduction in the actual price level have on

the amount of output supplied by producers? Explain using labour market analysis.

b) Will there be any relationship between inflation and unemployment either in the short run or in the

long run in the context of part (a)? What factors account for the different opinions of economists about

this relationship?

c) What is price stickiness? Why do New Keynesians believe that allowing for price stickiness in

macroeconomic analysis is important?

Suppose you deposit R10 000 in a bank and the reserve requirement is 0.25. If the banking

system has zero excess reserves, then the total amount of new money (not counting your

deposit) that can be created is:

A. R10 000

B. R30 000

C. R40 000

D. R 2 500

E. R 7 500

Which one of the following statements is correct? The demand for a product of a perfectly competitive firm.

A.slopes downwards from left to right

B.slopes upwards from left to right

C. Is perfectly elastic

D. Is perfectly inelastic