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Macro Economics Assignment Help | Macro Economics Homework Help

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About Macro Economics:Copyright 2010-2014 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
3

C = 500 + 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 +
Y = 500 +

3
4
3
4

(Y 60) + 400 + 100

Y 45 + 4000 + 100

Y- 4 Y = 500 + 400 + 100 45

1
4

Y = 955
Y = 3820

(ii) Consumption at equilibrium level of income (3820)

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C = 500 +
and

Yd

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.

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(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 = KG

and

k=

So,

Y = 5 G

Or

1 10.8

or

1
0.2

=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 = -1

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0.8

= -10.8 = -4
Y = KT
Or

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 + (XM)
= 100 + 0.8 (Y -100) + 1000 + 100 + (500 0.25U)
= 100 + 0.8Y 80 + 1000 + 100 + 500 0.25Y
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= 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

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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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