macroeconomics

  1. J

    Problem of the Origin of the Profit

    Hi, I have written a small paper on economics. Basically I claim that in an economy with fixed amount of money, no monetary profit is sustainable, therefore the government has to print new money and from time to time inject it into circulation. Also I show in my work that banks don't create new...
  2. I

    Macro-economics

    Hello :) Can you help me please about the next exercise: A closed economy is in economic equilibrium of full employment. The central bank bought bonds from public, so the amount of money increased by 1%. Therefore, the prices will rise by 1% and there will be no change in private...
  3. I

    Macro-economics

    Hello :) Can you help me please about the next exercise: The nominal GDP of the economy has increased by 16% in the last decade, the population has increased by 11%, and the price index has increased by 3%. What is the value of real GDP per capita? I just know that real GDP (not per...
  4. I

    Macro-economics

    Hello :) Can you help me please about the next exercise: The aggregate demand function of a closed economy: AD = 1000 + 0.75Y (Y = income). Marginal propensity to invest is 0.15, inflationary gap is 30 and the demand for money is not dependent on product/GDP. Therefore, if the government...
  5. I

    Macro-economics

    Hello :) Can you help me please about the next sentence: In the last year, nominal GDP grew by 9.2% and prices grew by 5%, therefore, if there is no change in the size of the population, real per capita GDP will increase by 4%. I didn't understand why real per capita GDP will increase...
  6. I

    Macro-economics

    Hello :) I'll be happy if you will help me please about the next sentence: The bank bought a bond from the public. What does it mean? I mean, what will happen after when the bank will buy a bond from the public? And what does "public" mean? People? Companies? I'm sorry if it's a stupid...
  7. I

    Macro-economics

    Hello :) Can you help me please about two questions which I'm not sure about my answers: 1. An economy in which proportional tax is customary is found in equilibrium in unemployment. As a result of the pessimistic expectations of the entrepreneurs, The investment has fallen...
  8. I

    Macro-economics

    Hello :) Can you help me please about the next exercise: The following are data on a certain economy: Aggregate demand: AD = 1000 + 0.75Y. Marginal propensity to invest: MPI = 0.15. Product gap is equal to 120. a. Find the Keynesian multiplier (K), Deflationary gap and Product of full...
  9. I

    Macro-economics

    Hello :) Can you help me please about the next exercise: In a certain economy, the following behavioral functions are presented (in millions dollars): Disposable Income: Yd Private Consumption: C = 160 + 0.6Yd Investment: I = 50 + 0.15Y Public consumption: G = 100 The government doesn't...
  10. I

    Macro-economics

    Hello :) Can you help me please about the next question: For a certain family, a private consumption curve/function that has a marginal tendency to consume is constant at any available income (the income after deduction because of debts, tax and more) level which equal to 0.75. It is known...
  11. T

    Macroeconomics 3 - need help with an excercise

    Thank you for your time and consideration. Best regards, Tilen
  12. T

    Macroeconomics 3 - need help with an excercise

    1 Problem sets 2 and 3 1. Imagine a Ramsey type of model, where we introduce a human capital into the model. The production function is given by: Yt = K K t H H t ; where K < 1; H < 1; and K + H < 1: The laws of motion for the two types of capital are: Kt+1 = Kt(1 .. K) + IK;t; Ht+1 = Ht(1...