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Thread: Macroeconomics

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    maxmuscle187's Avatar
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    Exclamation Macroeconomics

    If anybody knows about this subject pm me. I got this assigment due regarding aggregate demand, long run aggregate supply, short run aggregate supply, gdp. Let me know bros

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    bump.......

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    Quote Originally Posted by maxmuscle187
    bump.......

    Post your question bro and I might ( I say maybe only) be able to help a bit. We talking graphs, or money multipliers or what?

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    I can help you out with macro. PM me your questions. (I hope you aren't expecting someone to do a take home exam for you or something)

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    I've taken a few courses......but it was all 100 and 200 level stuff, so if its really in depth I can't help. Hopefully I still remember what I learned....I still remember marco pretty well I think.

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    Dropped it this term.

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    its first level, i did microeconomics last semster and im doin macro this term. its frikkin hard

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    I've attached the first page of the assignment. it involves making graphs and labelling them. i dont get it.
    Attached Thumbnails Attached Thumbnails Macroeconomics-econ.jpg  
    Last edited by maxmuscle187; 03-21-2005 at 01:00 AM.

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    any help would be great bros

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    bump

  11. #11
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    anybody read the attachment?

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    l6873 is offline Associate Member
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    Yeah, it was due March 15th.

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    yea i know i got an extension , now its due tomorrow. iv done the rest of the assignment, just the graphs im stuck on

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    Are you strictly using a AD/SAS curve or using it in conjunction with the IS/LM model? Using the IS/LM model as the short run 'driver' of the AD/SAS curve is probably the easiest way to go about illustrting the effects of each of these scenarios. I'll start with some hints which hopefully make enough sense to get you going: (keep in mind there are often several explanmations which could be correct for a given question in Econ, you might have to sort of judge what you think the Prof wants to hear)

    W = wage rate
    Y = real income
    C = consumer spending
    G = government spending
    I = investment spending (by firms)

    i) increase in W --> increase in Y --> increase in I, C --> multiplier effect
    - increases in C, I result in a rightward shift of AD curve, this shows the increase on the demand side you need to show how the supply side responds
    ii) any time productivity goes down real income goes down as the two are equal
    iii) Assuming he means a decline in the world price of the commodity. I would show the effects of this through the effects on the exchange rate today, the interest rate and net exports.
    iv) Increase in G causes rightward shift of IS curve
    Increase in the tax_rate holding Y fixed, impies higher taxes which implies a lower C as C is a function of Y and T
    You need to decide which of these two has a larger effect on the IS curve. Open ended question like this you only really need to be careful how you justify what happens.

    Hope this mumbo jumbo helps.

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    thanks bro

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    wanna make the graphs?

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