Macroeconomics Answers

Will inflation Peter out

1. why firms may offer a higher wage to workers than the equilibrium wage rate.

Explain and analyse the economic situation of Togo since 2000 till 2020

The first principle of economics discussed in Chapter 1 of Mankiws book is that people face trade-offs. Use a production possibilities frontier to illustrate societys trade-off between two goodsa clean environment and the quantity of industrial output. What do you suppose determines the shape and position of the frontier? Show what happens to the frontier if engineers develop a new way of producing electricity that emits fewer pollutants.

Imagine a society that produces military goods and consumer goods, which well call guns and butter. a. Draw a production possibilities frontier for guns and butter. Using the concept of opportunity cost, explain why it most likely has a bowed-out shape. b. Show a point that is impossible for the economy to achieve. Show a point that is feasible but inefficient. c. Imagine that the society has two political parties, called the Hawks (who want a strong military) and the Doves (who want a smaller military). Show a point on your production possibilities frontier that the Hawks might choose and a point that the Doves might choose. d. Imagine that an aggressive neighboring country reduces the size of its military. As a result, both the Hawks and the Doves reduce their desired production of guns by the same amount. Which party would get the bigger peace dividend, measured by the increase in butter production? Explain

Draw a circular-flow diagram. Identify the parts of the model that correspond to the flow of goods and services and the flow of dollars for each of the following activities. a. Selena pays a storekeeper $1 for a quart of milk. b. Stuart earns $8 per hour working at a fast-food restaurant. c. Shanna spends $40 to get a haircut. d. Salma earns $20,000 from her 10 percent ownership of Acme Industrial. 

Imagine that the aggregate production function is given by Y = F(K, AeL), in which e is workers’ effort. The function F satisfies the usual properties, including constant returns to scale in its two inputs, K and AeL. What happens if e increases?

Define terms of trade and explain how the terms of trade will be affected in south Africa by the increase in commodity prices

 Explain the two characteristics of the Cobb Douglas production 

function that make it particularly useful to macroeconomists

Answer the next question (s) on the basis of the following domestic supply and demand schedules for a product. Suppose that the world price of the product is $1.

Quantity supplied (domestic) 12,10,7,4,1. Price $5,4,3,2,1

Quantity demanded (domestic) 2,4,7,11,16

I) referring to the above data, if this nation were entirely closed to international trade, what is the equilibrium price and quantity?