Questions from Macroeconomics


Q: In an economy, autonomous consumption expenditure is $50 billion,

In an economy, autonomous consumption expenditure is $50 billion, investment is $200 billion, and government expenditure is $250 billion. The marginal propensity to consume is 0.7 and net taxes are $2...

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Q: Suppose that the economy is at full employment, the price level

Suppose that the economy is at full employment, the price level is 100, and the multiplier is 2. Investment increases by $100 billion. In the short run, does the price level remain at 100? Explain why...

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Q: Suppose that the economy is at full employment, the price level

Suppose that the economy is at full employment, the price level is 100, and the multiplier is 2. Investment increases by $100 billion. Are the values of the multipliers in the short run and the long r...

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Q: Explain how an increase in business investment at a constant price level

Explain how an increase in business investment at a constant price level changes equilibrium expenditure.

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Q: An economy has a fixed price level, no imports, and

An economy has a fixed price level, no imports, and no income taxes. MPC is 0.80, and real GDP is $150 billion. Businesses increase investment by $5 billion. Calculate the multiplier and the change in...

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Q: In 2014, China’s real GDP is growing at 7 percent a

In 2014, China’s real GDP is growing at 7 percent a year and its population is growing at 0.5 percent a year. If these growth rates continue, in what year will China’s real GDP per person be twice wha...

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Q: Mexico’s real GDP was 13,405 trillion pesos in 2013 and

Mexico’s real GDP was 13,405 trillion pesos in 2013 and 13,805 trillion pesos in 2014. Mexico’s population was 118.4 million in 2013 and 119.5 million in 2014. Calculate: a. The growth rate of real GD...

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Q: South Africa’s real GDP was 1,900 billion rand in 2011

South Africa’s real GDP was 1,900 billion rand in 2011 and 1,970 billion rand in 2012. South Africa’s population was 50.5 million in 2011 and 51.0 million in 2012. Calculate: a. The growth rate of rea...

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Q: While gross domestic product growth is picking up a bit in emerging

While gross domestic product growth is picking up a bit in emerging market economies, it is picking up even more in the advanced economies. Real GDP in the emerging market economies is forecasted to g...

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Q: The first table describes an economy’s labour market in 2014 and the

The first table describes an economy’s labour market in 2014 and the second table describes its production function in 2014. Suppose that labour productivity increases in 2014. What...

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