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Explain what effect an expansionary fiscal policy would have on the price level and real GDP starting from full employment equilibrium.
Comprehensively distinguish between expansionary and restrictive fiscal policy. Is the current fiscal policy stance in SA expansionary or restrictive? Motivate your answer comprehensively. (half a pag
Suppose you know that Canada's GDP in 1999 was $900 billion, and Canada's GDP in 1933 was $9 billion. What judgment about the change in the economic well-being of average Canadians could you make? Exp
Assume that your company is one of the leading importers of FMCG in the Maldives. Because of dollar shortage in the country, you are required to buy $ at higher rate than the official rate determined
Discuss the cyclical behaviour of the budget deficit in South Africa and provide an explanation for this behaviour. (half a page with references)
Explain the budget identity and fixed budgetary commitments, with specific reference to the South African 2009/2010 budget, as constraints on the pursuit of discretionary fiscal policy
Use a chain reaction to explain the impact of a reduction in the budget surplus on GDP (use a complete chain reaction). Is this an example of expansionary or restrictive fiscal policy?
What are the differences between effective and aggregate demand and which one is most important in determining the equilibrium of Keynesian economy?
Real GDP is 15.4 trillion and Potential is 15.8 the purchase multiplier is 2 and the tax multiplier is -1.6 how much does the government need to spend to increase the GDP .4 trillion
A securities analyst claims that, given a specific list of 6 common stocks, it is possible to predict, in the correct order, the 3 that wil perform best during the coming year. What is the probability
Data collected in the imaginary economy of Kharkeez reveals that when the price of a bork increased by 20%, the quantity of bork sold decreased by 30%, and the quantity of perf demanded increase by 15
Purchasing Power Parity Theorem (PPPT). The inflation rate in the United States is projected at 3 percent per year. The New Zealand rate is projected to be 5 percent.
Covered Interest Arbitrage. The spot and 360-day forward rates on the Swiss franc are SF 2.1 and SF 1.9, respectively. The risk-free interest rate in the US is 6 percent, and the riskfree rate in Swit
Interest-Rate Parity. If the interest rates on the 30-day instruments in the US and Switzerland are 12 and 10 percent (annualized), respectively, what is the correct price of the 30-day forward SF?
Under the terms of the swap, 6-month LIBOR is exchanged for 12% per annum (compounded semiannually). The average of the bid-offer rate being exchanged for 6-month LIBOR in swaps of all maturities is c
Critically examine the basic formulations of the harrod- domar model of economic growth. how does the harrod model explain the occurrence of trade cycles?
An agreement reached with the labour union in which wage increases are tied to productivity increases
All three spend half their time on each activity (C)iv. Larry spends half his time on each activity, while Moeonly washes cars and Curly only mows lawns (D)
"In the Solow model, an economy that starts with a higher stock of capital per capita will reach a higher steady state level of capital per capita"
Show that equation (1) implies that per capita investment is also a constant fraction of per capita income. Which equation, which was not stated in the set up of this question, do you need to show thi
State the commodity in which each country has absolute advantage and Identify the commodity of comparative advantage for each country
Explain whether there is a relationship between inflation and unemployment and should government interfere and reduce inflation and unemployment?
Assume that Mf = Ma. Find the real wage that makes total labor supply and total labor demand exactly equal to each other (this is called, the equilibrium real wage). Find the equilibrium number of hou
Consider now the decision problem of the agents. Let n denote the number of hours per month that an agent works. Write an equation relating n and l. Write the agents budget constraint. Express the bud
If an agent is liquidity constrained, then an unexpected increase in transitory income of $100 can result in the agentís current consumption increasing by $100"