Macroeconomics questions and answers in February 2021

Suppose Venezuela can produce petroleum at a lower opportunity cost because of its natural resources, and China can produce clothing at a low opportunity cost because of its population and level of in...

Suppose that the economy is characterized by the following behavioral equations: C = 120 +0.60 YD I = 130 G = 150 T = 100 a. Equilibrium GDP ( Y ) = ( Round your resp...

Part 1 - Check Your Understanding- U se the information in the paragraph to answer the questions. Assume that policymakers believed that the marginal propensity to consume (MPC) was 0....

The government of Australia has embarked on various policies such as Job Keeper and provision of subsidies to firms in order to reduce the severity of COVID 19 on the economy. Suppose the money supply...