Macroeconomics Exercise

-Mohair farmers have earned a subsidy from the federal government for decades because the mohair farmers can get large payments from the government without taxpayers ever really noticing because the farmers who get the subsidy care a lot about it, while the rest of us taxpayers (paying mere pennies extra in taxes) do not really care. And, “any politician with a preference for job security can calculate that a vote for the mohair subsidy will earn the strong support of the mohair farmers while costing nothing among other voters” (Wheelan 177).

a) What is the initial point of the long-run macroeconomic equilibrium? What are the equilibrium values? What does the appearance of the long-run aggregate-supply (LRAS) curve indicate? How does it differ from AS?

18) An economy’s aggregate demand curve shifts leftward or rightward by more than changes in initial spending because of the

5. What are the factors of production? How can economies grow when one or more of the factors is weak?

2: What is worse is that many countries have deluded themselves even further by limiting the growth of the country into a dollar amount. The measure of growth is flawed, how countries see their growth is based on the consumption of their people. Many countries use the GDP (Gross Domestic Product) as an indicator for growth, as defined in It’s All Connected, “(GDP) is a calculation of the total monetary value of goods and services produced annually in a country” (Wheeler 11). The measure of human growth is broken down to the items and services we buy and use? Something says that we are only a dollar or perhaps ten or fifteen. Wheeler also points out that the GDP rises with any disasters, or

Evaluate each of the following changes in supply and/or demand. How will each affect equilibrium price and quantity in a competitive market? Will price and quantity rise, fall, or be unchanged? Based on shifts, will the answers be indeterminate?

How would you describe the economy today in part of the world you are living? From my point of view I would say the economy is taking two steps forward and ten steps back. On a daily basis, people around the world, whether they are poor, middle class or rich, are faced with the most important economic question. How do I allocate my limited resources to fulfill my insatiable wants? Many people use up all their resources, end up with a higher demand of wants and their basic need are not met; resulting in falling into the loop hole of poverty. Why don’t government seek better ways to curb the economy by controlling the rapidly increasing population, decreasing poverty levels of the nation and injecting funds in to skill development institutions?

To set up this scenario we have a few assumptions of the model, and of the policies that are being employed in the scenario in following this particular ‘economic story’:

George has proved a highly motivated student of Economics with a lively interest in the subject and it’s issues,, and he has achieved an excellent understanding of the key economic models and concepts. In class he has been attentive and his contributions to class discussion have been mature and insightful. James summative assessment work has been well prepared and of a high standard. George’s

Describe how Gross Domestic product (GDP) is calculated; discuss how good a measure GDP is of a country’s economic wellbeing.

The shape of the production possibility frontier (PPF) of a country depends on: (1) its factor endowments and (2) the production functions of the various commodities. The plausible shapes of the production possibility frontier include:

This essay is going to find out “What are the main reasons behind different rate of economic growth in emerging and developed economics in last 15 years?” In hear I selected five emerging and five developed economics, and do analysis through five selected numerous factors to identify reasons behind different rate of economic growth.

1 OʼSullivan, Arthur, and Steven M. Sheffrin. Economics: Principles and Tools. 5th ed. Upper Saddle River,

Economic growth is a macroeconomic policy objective for countries. The growth of economies have two meanings. First, economic growth means the gross domestic product (GDP) increases within the given period of time.The increases in GDP also means the increase in the value of national output or national expenditure.The other meaning is the increasing of production when using all the scarce resources,which can be showed in the PPF(Production Possibility Frontier).In the diagram below,the outward shift of the PPF shows that the productive capacity has increased in the long run,with the determinant of the quantity and quality of land,labour,capital and enterprise.

The economic theory and literature are extremely complex, elaborate and filled with specific information. Still, some of this information is difficult to processes and implement by a novice economist, or sometimes even by a practicing economist, rather than a theoretician. Harvard Professor Gregory Mankiw has identified this shortage of the specialized literature and has strived to enunciate ten critical economic principles, which can be easily understood and applied by all. These principles refer to the following: