External link to Macroeconomics Problem Set

Macroeconomics Problem Set

However, if the more expansionary policy persists, the long-run impact will be inflation and higher nominal interest rates, without any positive impact on real output and employment. The more rapid the sustained growth rate of the money supply (relative to real output), the higher the expected rate of inflation. Thus, modern analysis indicates that the long-run implications of the earlier quantity theory of money are […]

External link to Macroeconomics questions

Macroeconomics questions

AT&T it represents savings because the check wasn’t being spent on consumption goods. ) Your roommate earning $100 and depositing it into her bank account also represents saving because the money wasn’t spent on consumption goods. D) Borrowing $1000 from the bank to buy a car to use in your pizza delivery business represents Investment because the car Is a capital good. Page 295 Question […]

External link to Macroeconomics: Discussion Questions

Macroeconomics: Discussion Questions

In the aspect of macroeconomics, economists measure and evaluate the current condition and characteristics of a certain region’s economy based on the production ability and condition of the said population. This economic production value is summarized under the computation of the Gross Domestic Product of said the region. GDP is mainly the summary of the value added at every stage of production of all final […]

External link to Macroeconomics


Explain the concept of potential output and why actual output can differ from potential output? (2 marks) Potential output is the amount of output that an economy can produce when using its resources such as capital and labour, at normal rates. Potential output is not a fixed number but grows over time, reflecting increases in both the amounts of available capital and labour and their […]

External link to Bu204 Macroeconomics Unit 2 Assignment

Bu204 Macroeconomics Unit 2 Assignment

Renea Frymoyer BU204 01 September 29, 2012 ? Questions: 1. A representative of the American clothing industry recently made the following statement: “Workers in Asia often work in sweatshop conditions earning only pennies an hour. American workers are more productive and as a result earn higher wages. In order to preserve the dignity of the American workplace, the government should enact legislation banning imports of […]

External link to Macroeconomics Equilibrium GDP

Macroeconomics Equilibrium GDP

1. Move the green pointer on the horizontal axis to an income level of 430. Then click on the “income adjustment” button. What happened? Why did income return to equilibrium at 470? The GDB rises to restore equilibrium. This is because at GDP=430, the aggregate expenditures is higher than production. This is a state of imbalance so that production opportunities will rise to match the […]

External link to Macroeconomic Analysis: Russia

Macroeconomic Analysis: Russia

Since the financial crisis in 1998, Russia has been experiencing impressive economic growth due to the collaboration of monetary and fiscal policies that stabilized the performance of major economic indicators up to this day. Many economists regard the impressive performance of Russia as part increase of the volume of investment in the said country. On the other hand, some says that the notable growth of […]

External link to Macroeconomic GDP of Malaysia

Macroeconomic GDP of Malaysia

GAP is expected to grow by 5. 1% for both 2013 and 2014, driven by higher consumer and business spending. As the global recovery gathers speed in 2014, Malaysia’s external sector will increase its contribution to growth, offsetting the impact of tighter fiscal policies on the domestic economy. Malaysia’s recent economic performance and near term outlook owes much to the commodities sector, which includes crude […]

External link to The Fundamentals of Macroeconomics

The Fundamentals of Macroeconomics

Before being able to grasp what economics has to offer it is important to understand the terms and concepts that are frequently used in economic. This paper will consist of two parts, part one will explain six terms; gross domestic product (GDP), real GDP, nominal GDP, unemployment rate, inflation rate, and finally interest rate. Part two will consist of describing how three economic activities, such […]

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