How does the unemployment rate relate to macroeconomics? Explain, using a diagram demand-side unemployment and supply-side unemployment. How do we differentiate demand for quality from demand for quantity? How can you find the long run supply function from the MC and the demand function?
Enumerate and discuss five conceptualizations of profit which support the argument in favour of a free market economy. A. Assume a simple, closed economy with no government. The marginal propensity to consume (mpc)=0.8. Assume that firms expect the future sales and profits to fall...
How can one use macroeconomics to accurately model the global economy? Explain briefly the endogenous economic growth model. Explain how starting with the consumption function (c = Co + MPC \times GDP) Keynes obtained the total expenditures (TE) curve. ...
A. Assume a simple, closed economy with no government. The marginal propensity to consume (mpc)=0.8. Assume that firms expect the future sales and profits to fall, and they suddenly cut back (unintend What is meant by 'glo...
Discuss the different approaches economists can use to make this calculation What Is The GDP: A country's GDP, also called the Gross Domestic Product, is essentially the sum of the market value of all goods and services produced...
Demand as a whole is made up of everything from consumption to government expenditure to exports and imports and so forth. Answer and Explanation: Gross domestic product (GDP) is influenced by income taxes. A decrease in income ...
Calculate the marginal propensity to consume if the marginal propensity to save is 0.25. Explain what this value of the MPC means. Explain the notion of diminishing marginal returns to labor in the Short Run. Economists use production functions to: a. define what is technically...
GDP Gross Domestic Product (GDP) is a measure of the value of all goods and services produced in an economy. Reselling of goods is not included in GDP. Only the potential value-added the reseller supplied the good is inclu...
Look at the Keynesian consumption function: C = C0 + (MPC - Yd). a. What part of it relates to autonomous consumption? b. What part of it relates to induced consumption? How does the multiplier process work when there is an initial decrease in autono...
Various macroeconomic indicators are calculated to give economists, firms and consumers an idea of how the economy is doing. The popular indicators are gross domestic product, inflation and unemployment. In the United States, these numbers a...