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1. Consider a macroeconomy was initially at equilibrium level. Using the Short Run aggregate demand and aggregate supply model graphically illustrate and discuss the short-run of the following events upon economic activity: (a) The central bank cuts interest rates (b) There is an increase in spending on infrastructure by the Government. (c) An increase in international economic turbulence. (d) An appreciation in the foreign exchange rate value of the economy's currency. 2. Collect an article from an Australian newspaper that relates to the current Australian macro economy or a macroeconomic issue or problem. In a paragraph indicate which section of the course it applies to, why you selected the article and provide a brief summary of what the article is actually about 3. Many people find the current inflation figures for Australia are unbelievable especially when many complain about he rising cost of living. Why might the official statistics be inaccurate? 4. What would happen to GDP if people decide to save more out of their current income? What eventually happens to the level of savings? What would happen to equilibrium income if there is a sustained rise in private investment spending? 5. State the difference between: - an economic contraction and economic expansion. -between appreciation and depreciation - between the trade deficit and the budget deficit 6. Under what economic circumstances is monetary policy most effective? When is fiscal policy most effective 7. Distinguish between ongoing demand pull and ongoing cost push inflation. Carefully draw them. Why might it be difficult to establish the extent to which a given rate of inflation is either demand pull or cost push? 8. The Australian economy has gone nearly 22 years without a recession meaning a whole generation of Australians have grown up never experiencing a recession or mass unemployment. How has Australia achieved this? Was it luck, good economic management or some other factor? 9. Why do economists study economic indicators? What are some examples of Leading indicators? 10. The Australian dollar has fallen by 12 US cents in the last year. What are the macroeconomic consequences, or benefits and costs, of this currency movement?
Cypress River Landscape Supply is a large wholesale supplier of landscaping materials in Georgia. Cypress River's sales vary seasonally; sales tend to be higher in the spring months than in other months.
Consider a firm in a perfectly competitive industry. The firm has just built a plant that cost $1,700.Each unit of output requires $14 worth of materials. Each worker costs $11 per hour.The firm's production starts at 300 units with 1 worker (40 h..
Explain why it is important to plan for uncertainties and how to implement a strategy to address possible risk factors. Your response should be at least 200 words in length. You are required to use at least your textbook as source material for your r..
Suppose the autonomous planned spending increases by 800 billion so that A?p = 5,800. Explain if this increase is the result of increases willingness of financial market firms to lend to consumers and business firms ..
Which would increase investment demand?
Reducing taxes increases the amount of available cash that consumers can use to purchase goods and services. The more cash consumers have, the more purchases they are likely make. As consumers in a country increase spending, it directly increases ..
A firm is a monopoly with demand and cost functions given by P = 200 – 2Q and C(Q) = 2,000 + 3Q2 respectively. Show your computations. Compute total cost. Compute total revenue. What is the price at the profit maximizing quantity?
sub-temp inc. offers modular freezers to restaurants and other institutional buyers. each freezer is a self-contained
Whole Foods buys organic beets from two suppliers, one in Ames and one in Zearing. The price per unit of the Ames beets is $4.50 and the price per unit of the Zearing beets is $7.00. Define variables that would tell how many units to purchase from ea..
two consumers justin and cindy of the same product have the following demand curves q1 500 - 10 p and q2 500 - 20 p.
Explain to him fully the profit-maximising/loss minimising rule within the context of a perfectly competitive market structure and how the profit-maximising/loss minimising rule may be applied under the three (3) scenarios viz. economic profit, norma..
Pham can work as many or as few hours as she wants at the college bookstore for $11 per hour. But due to her hectic schedule, she has just 19 hours per week that she can spend working at either the bookstore or at other potential jobs
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