Macroeconomics Answers

In today’s economy, it’s harder for workers to get promoted. In 2006, it took an average

of 2 ½ years to get a promotion; today it takes 4 ½ years. As a result, fewer workers are willing

to boost their productivity in an effort to impress the boss and get the promotion. In 2006, 25

percent of employees said they were willing to give “an extra oomph” at work (boost their

productivity); today about 15 percent are willing to do so. Explain the connection to the Phillips

curve.

Suppose government purchases increase to 1000, what is the new equilibrium income and consumption? (4 Marks)

v. What is the new fiscal deficit/surplus after government spending increases to 1000?

The population in country C decreases, due to a lower birth rate. At the same time, there is an increase in the cost of fertilizer, which is used to grow vegetables. Explain how the market for vegetables will be affected by these changes. Clearly indicate how the equilibrium price and equilibrium quantity will be affected by these changes. Make use of a combination of diagrams and verbal explanation to explain your answer. Note that your diagrams should be properly annotated and that marks will be deducted for any missing labels on your diagram.

). In today’s economy, it’s harder for workers to get promoted. In 2006, it took an average

of 2 ½ years to get a promotion; today it takes 4 ½ years. As a result, fewer workers are willing

to boost their productivity in an effort to impress the boss and get the promotion. In 2006, 25

percent of employees said they were willing to give “an extra oomph” at work (boost their

productivity); today about 15 percent are willing to do so. Explain the connection to the Phillips

curve.

Demand for a soft book managerial economics text is given by Q = 20,000 – 300P. the book is initially priced at $30.

a. Compute the point price elasticity of demand at P = $30

b. If the objective is to increase total revenue, should the price be increased or decreased? Explain.

For the given demand equation Qd=30-2p. Calculate the inverse of the demand equation, Average Revenue, Total Revenue and Marginal Revenue

b) You are trying to decide whether to take a vacation. Most of the costs of the vacation (airfare, hotel, and forgone wages) are measured in dollars, but the benefits of the vacation are psychological. How can you compare the benefits to the costs?

What happens to the demand curve of normal goods (draw an appropriate graph) in each of these cases?

a) The Bhutan population grows 0.5% in 2020?

b) An economy XYZ slides into recession in 2019, leading to a fall in real incomes

U.S. economic growth had slowed to a crawl, and then to a halt. Companies that had stocked up on recent college grads in the tighter labour markets of 1998-2000 found themselves with more than they knew what to do with in 2002 and 2003. They were not eager to hire more. Bonuses and other “perks” disappeared; job offers became scarcer. With the unemployment rate around 6% in May and June of 2003, the job market was far from the worst ever. But it was nothing like the glory days of 2000.

i) Briefly explain and justify what prevailing situation was taking place in the year 2000.

(ii) Identify and explain two (2) fiscal policies and two (2) monetary policies that the US government may have used to correct this situation.

the trade between different countries in the world is called _

Erica and Ladia are planning to open a business however they are not sure as to the type of enterprise suits them for your knowledge, is it possible to convert a close corporation into a company? If so how should they do it?