Macroeconomics Assignment. By XYZ Institution Name 1 | P a g e 1. The full employment level of output is where the labor market and the output market are in. 1. QUESTION BANK. MACROECONOMICS. Prepared by the faculties of the Department of. Economics, (Evening). 08/06/ Questions Macroeconomics (with answers). 1 Gross domestic product (GDP) and living standard. 01 Gross domestic product 1. Are these activities.
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The national income accounting system measures the level of production in the economy at some particular time and helps explain that level.
We would do this for all goods and add up each value. Economic indicators and the business cycle Unemployment: Economic indicators macroeconomicw the business cycle Limitations of GDP: Payment for a final service.
Long-run consequences of stabilization policies The Phillips curve: In year 2, the output mix changes to 5 quarts of ice cream, 2 bottles of shampoo, and 2 jars of peanut butter.
Macroeconomics numericals Term paper Example – words –
What was its GDP in year 2? Financial sector Definition, measurement, and functions of money: Used furniture was macroeconmics in some previous year; it was counted as Macrofconomics then. Keynesian economics and its critiques: Macroeconomics numericals from where to practice macroeconomics numericals and problems.
The answer is to adjust nominal GDP to take into account potential changes in prices. A private transfer payment; simply a transfer of income from one private individual to another for which no transaction in the market occurs.
When gross investment exceeds depreciation, net investment is positive and production capacity expands; the economy ends the year with more physical capital than it started with. Provide three examples of each: The question then arises, how can we compare the market values of GDP from year to year if the value of money itself changes in response to inflation rising prices or deflation falling prices?
Suppose that in the total output in a single-good economy was buckets of chicken. Be sure to use the quantities and the prices. National income and inequality: What is the size of the underground economy as a percentage of GDP? This approach adds personal consumption expenditures, gross investment, government purchases, and net exports. Long-run consequences of stabilization policies.
If intermediate goods were counted, then multiple counting would occur. Adjust NI from part b as required to obtain PI. By macroeconomicx percentage did the price level, as measured by this index, rise between and ?
Finally, divide the value of the buckets of chicken using prices by the value of the bucket of chicken using prices the base year. Use the concepts of gross investment and net investment to distinguish between an economy that has a rising stock of capital and one that has a falling stock of capital.
Thus, the price of housing increasing by 5 percent has a much greater effect on the price index used to compare prices from one year to the next, than would the price of a book of matches increasing by percent.
Sunscreen lotion is usually a final good.
Financial sector The Market for loanable funds: This final sale price includes the cost of the bulbs purchased by the Internet retailer. By comparing national accounts over a number of years, we can track the long-run course of the economy. The cotton fibers are used to produce other goods that will be sold on the market.
Long-run consequences of stabilization policies Deficits and debts: Nominal GDP is a measure of the market or money value of all final goods and services produced by the economy in a given year. It is a new good produced for final consumption. The person purchasing the textbook macroeconomic typically the individual who will use the textbook.
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The following table shows nominal GDP and an appropriate price index for a group of selected years. Basic economics concepts Opportunity cost and the Production Possibilities Curve: Since net domestic product is gross domestic product less depreciation, in determining net domestic product through the expenditures approach it would be appropriate to use the net investment measure that excludes depreciation, that is, net private domestic investment.
The effect of the decline will be counted, but the change in the workweek itself is not the production of a final good or service or a payment for work done. Economic indicators and the business cycle Costs of Inflation: To the right is a list of domestic output and national income figures for a certain year.
Coal is usually an intermediate good. Basic economics concepts Markets: Determine the GDP price index forusing as the base year.
Why is one more reliable than the other for comparing changes in the standard of living over a series of years?