Macroeconomics Answers

 Consider a closed-economy IS-LM model. Assume initially the economy is at medium-run equilibrium. Discuss with the help of graphs the effects of a decrease in consumer sentiment for output, interest rates and price level in the short run as well as in the medium run. Be sure to explain how the economy transitions from short run to the medium run.

What impact did an increase in prices of petrol, dissel have in the South African economy as a whole...which sectors affected the most as due to the War in between Russia and Ukrain

Draw the Philips Curve in 1980 with the economy facing stagflation, Label this point "A''

Show the short-run results of Chairman Volcker's leadership on the Philips curve, Label this point of short-run equilibrium point "B" and indicate new inflation and unemployment rate .

In 2020, Melokuhle earned a salary of R20 000 a month and paid an income tax of R2 800; his salary increased to R25 000 a month, and he now pays an income tax of R3 100. This is an example of a…

regressive tax.

b.

proportional tax.

c.

progressive tax.

d.

general tax

Examine the markets and/or industries in your area.

Describe each one, and categorize it in terms of being pure competition,

pure monopoly, monopolistic competition, or oligopoly.

Which type of market is most common? How do you explain this?

[An increase in the productivity of research.] Suppose, there is a onetime increase in the

productivity of research Θ (theta), as in the Figure 5.1 (in textbook, Jones’). What will

happen to the level of technology, A and the growth rate overtime?

Show how the Romer model exhibits a scale effect in levels, that is, a larger economy will

be a richer economy. Give the demand and supply effects. Explain the two opposing effects

of SR on per capita output.

Prove that in the Romer model, the long run growth rate of the economy is determined by

the parameters of the production function for ideas and the rate of growth for researchers

which is ultimately given by the population growth rate. (Romer Model)

The Production of new goods, or new ideas, requires the possibility of earning profits and

therefore necessitates a move away from perfect competition. Explain this in the context of

Romer model