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Macro Economics Assignment Help | Macro Economics Homework Help
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David Luke
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About Macro Economics:
Tutorhelpdesk
Copyright © 2010-2014 Tutorhelpdesk.com
Tutorhelpdesk
Copyright © 2010-2015 Tutorhelpdesk.com
Copyright © 2010-2015 Tutorhelpdesk.com
About Macro Economics:
Macro economics is the branch of economics that deals with the
study of performance, structure and behaviour of the entire
economy on the basis of certain indicators such as GDP,
employment rate, price indices etc.Macroeconomists develop
models that explain the relationship between such factors
as national income, total output, consumption,
unemployment, inflation, savings, investment, international
trade and international finance. Macro Economics Assignment
Help is a very broad field as compared to Micro economics. Micro
economics is confined to a single firm or consumer & its behaviour. But Macro economics
focuses on the behaviour of a economy as a whole. It is the study of understanding the
causes of short long fluctuation in the national income and the determinants of long run
economic growth.
Sample Macro Economics Assignment Help Questions and Answer:
Depreciation Sample Question
Question -1.
Given the following values
C = 500 +
3
4
Yd
I = 400
G = 100
T = 60
Calculate:
(i) The equilibrium level of national income.
(ii) The consumption expenditure at equilibrium income level.
Ans.
(i) Y = C+ 1+ G.
Y = 500 +
3
4
(Y – 60) + 400 + 100
Y = 500 +
3
4
Y – 45 + 4000 + 100
Y-
3
4
Y = 500 + 400 + 100 – 45
1
4
Y = 955
Y = 3820
(ii) Consumption at equilibrium level of income (3820)
Copyright © 2010-2015 Tutorhelpdesk.com
C = 500 +
3
4
Yd
and Yd = 3820 – 60 = 3760
C = 500 +
3
4
(3760)
= 2820.
We can check the answer by putting value of C, I, G in the equation
Y = C + I + G
i.e., 3820 = 2820 + 400 + 100
3820 = 3820
Or Y = AE.
Question 2.
Given the following values
C = 40 + 0.8Yd
I = 60
G = 40
T = 20
Calculate :
(i) The equilibrium level of national income.
Copyright © 2010-2015 Tutorhelpdesk.com
(ii) It full employment income is 700, how much increase in government expenditure be
made to each full employment.
(iii) How much should tax be reduced to reach full employment income level :
(i) Equilibrium level of national income
Y = C + I + G
= 40 + 0.8Yd + 60 + 40
= 40 + 0.8 (Y -20) + 60 + 40
= 140 + 0.8Y – 16
Or Y-0.8Y = 140 -16
0.2Y = 124
Y =
124
0.2
= 620.
(iii)Increase in government expenditure required to reach full employment income of 700. If
Yf is the employment income, then required increase in income
∆Y = Yr – Y
= 700 – 620
= 80
Now, ∆Y = K∆G
and k =
1
1−𝑏
1
1−0.8
or
1
0.2
= 5
So, ∆Y = 5 × ∆G
Or ∆𝐺 =
∆𝑌
5
=
80
5
= 16
So, increase of $ Required in G to reach full employment.
(ii) Reduction in tax (T) to reach full employment income level of 700.
∆Y = Yf – Y
= 700 – 620 = 80
Tax Multiplier KT = -
𝑏
1−𝑏
Copyright © 2010-2015 Tutorhelpdesk.com
= -
0.8
1−0.8
= -4
∆Y = KT ∆𝑇
Or ∆T =
∆𝑌
𝐾 𝑇
=
80
−4
= -20
So, a reduction of$ 20 in tax is required to achieve the full employment income level.
Question. 3 Find the equilibrium level of national income when
C = 100 + Yd
I = 1000
G = 100
T = 100
M = 0.25Y
And X = 500.
Ans. The equilibrium level of national income in an open economy
Y = C + I +G + (X–M)
= 100 + 0.8 (Y -100) + 1000 + 100 + (500 – 0.25U)
= 100 + 0.8Y – 80 + 1000 + 100 + 500 – 0.25Y
Copyright © 2010-2015 Tutorhelpdesk.com
= 0.8Y – 0.25U – 80 + 1700
Or Y = 0.55Y + 1620
Y – 0.55Y = 1620
Or 0.45Y = 1620
Or Y =
1620
0.45
= 3600.
Question .4. Calculate the equilibrium level of income with the following data :
C = 100 + 0.8Yd
I = 250
G = 170
t = 0.1Y
NX = 540 – 0.25Y
Copyright © 2010-2015 Tutorhelpdesk.com
Ans. Y = 100 + 0.8 (Y-0.1Y) + 250 + 170 + 540 – 0.25Y
= 100 + ( 0.8 × 0.9Y + 250 + 170 + 540 – 0.25Y)
= 0.72Y – 0.25Y + 100 + 250 + 170 + 540
= 0.47Y + 1060
Y – 0.47Y = 1060
0.53Y = 1060
Y =
1060
0.53
= 2000.

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Macro economics assignment help

  • 1. Macro Economics Assignment Help | Macro Economics Homework Help Tutorhelpdesk David Luke Contact Us: Phone: (617) 807 0926 Web: www.tutorhelpdesk.com Email: - info@tutorhelpdesk.com Facebook: https://www.facebook.com/Tutorhelpdesk Twitter: http://twitter.com/tutorhelpdesk Blog: http://tutorhelpdesk.blogspot.com/ . About Macro Economics: Tutorhelpdesk Copyright © 2010-2014 Tutorhelpdesk.com Tutorhelpdesk Copyright © 2010-2015 Tutorhelpdesk.com
  • 2. Copyright © 2010-2015 Tutorhelpdesk.com About Macro Economics: Macro economics is the branch of economics that deals with the study of performance, structure and behaviour of the entire economy on the basis of certain indicators such as GDP, employment rate, price indices etc.Macroeconomists develop models that explain the relationship between such factors as national income, total output, consumption, unemployment, inflation, savings, investment, international trade and international finance. Macro Economics Assignment Help is a very broad field as compared to Micro economics. Micro economics is confined to a single firm or consumer & its behaviour. But Macro economics focuses on the behaviour of a economy as a whole. It is the study of understanding the causes of short long fluctuation in the national income and the determinants of long run economic growth. Sample Macro Economics Assignment Help Questions and Answer: Depreciation Sample Question Question -1. Given the following values C = 500 + 3 4 Yd I = 400 G = 100 T = 60 Calculate: (i) The equilibrium level of national income. (ii) The consumption expenditure at equilibrium income level. Ans. (i) Y = C+ 1+ G. Y = 500 + 3 4 (Y – 60) + 400 + 100 Y = 500 + 3 4 Y – 45 + 4000 + 100 Y- 3 4 Y = 500 + 400 + 100 – 45 1 4 Y = 955 Y = 3820 (ii) Consumption at equilibrium level of income (3820)
  • 3. Copyright © 2010-2015 Tutorhelpdesk.com C = 500 + 3 4 Yd and Yd = 3820 – 60 = 3760 C = 500 + 3 4 (3760) = 2820. We can check the answer by putting value of C, I, G in the equation Y = C + I + G i.e., 3820 = 2820 + 400 + 100 3820 = 3820 Or Y = AE. Question 2. Given the following values C = 40 + 0.8Yd I = 60 G = 40 T = 20 Calculate : (i) The equilibrium level of national income.
  • 4. Copyright © 2010-2015 Tutorhelpdesk.com (ii) It full employment income is 700, how much increase in government expenditure be made to each full employment. (iii) How much should tax be reduced to reach full employment income level : (i) Equilibrium level of national income Y = C + I + G = 40 + 0.8Yd + 60 + 40 = 40 + 0.8 (Y -20) + 60 + 40 = 140 + 0.8Y – 16 Or Y-0.8Y = 140 -16 0.2Y = 124 Y = 124 0.2 = 620. (iii)Increase in government expenditure required to reach full employment income of 700. If Yf is the employment income, then required increase in income ∆Y = Yr – Y = 700 – 620 = 80 Now, ∆Y = K∆G and k = 1 1−𝑏 1 1−0.8 or 1 0.2 = 5 So, ∆Y = 5 × ∆G Or ∆𝐺 = ∆𝑌 5 = 80 5 = 16 So, increase of $ Required in G to reach full employment. (ii) Reduction in tax (T) to reach full employment income level of 700. ∆Y = Yf – Y = 700 – 620 = 80 Tax Multiplier KT = - 𝑏 1−𝑏
  • 5. Copyright © 2010-2015 Tutorhelpdesk.com = - 0.8 1−0.8 = -4 ∆Y = KT ∆𝑇 Or ∆T = ∆𝑌 𝐾 𝑇 = 80 −4 = -20 So, a reduction of$ 20 in tax is required to achieve the full employment income level. Question. 3 Find the equilibrium level of national income when C = 100 + Yd I = 1000 G = 100 T = 100 M = 0.25Y And X = 500. Ans. The equilibrium level of national income in an open economy Y = C + I +G + (X–M) = 100 + 0.8 (Y -100) + 1000 + 100 + (500 – 0.25U) = 100 + 0.8Y – 80 + 1000 + 100 + 500 – 0.25Y
  • 6. Copyright © 2010-2015 Tutorhelpdesk.com = 0.8Y – 0.25U – 80 + 1700 Or Y = 0.55Y + 1620 Y – 0.55Y = 1620 Or 0.45Y = 1620 Or Y = 1620 0.45 = 3600. Question .4. Calculate the equilibrium level of income with the following data : C = 100 + 0.8Yd I = 250 G = 170 t = 0.1Y NX = 540 – 0.25Y
  • 7. Copyright © 2010-2015 Tutorhelpdesk.com Ans. Y = 100 + 0.8 (Y-0.1Y) + 250 + 170 + 540 – 0.25Y = 100 + ( 0.8 × 0.9Y + 250 + 170 + 540 – 0.25Y) = 0.72Y – 0.25Y + 100 + 250 + 170 + 540 = 0.47Y + 1060 Y – 0.47Y = 1060 0.53Y = 1060 Y = 1060 0.53 = 2000.