Macro economics assignment help
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TutorHelpDesk is a prominent online service providing macroeconomics homework help, experiencing over 100% growth in student registrations since its inception in 2010. The document outlines the concepts of macroeconomics, including its focus on overall economic performance indicators and illustrative problems on equilibrium income. Additionally, it features solutions to specific economic scenarios regarding investment and savings functions.
Macro economics assignment help
- 1. Copyright © 2010-2014 Tutorhelpdesk.com Macro Economics Assignment | Macro Economics Homework Help Tutorhelpdesk is a preeminent online homework help and assignment help service provider since 2010. In a short span of three years we have managed to create a reputed brand in the mind of our students and customers we have successfully achieved more than a 100% growth of new student registrations as compared to last year. We also have the highest percentage of regular and loyal customers associated with us. The key to this achievement lies in the years of experience, knowledge and hard work of our subject experts. Our team of experts comprises of post graduates, doctorates and industry experts with years of teaching experience and practical exposure. Apart from school, college and university students.
- 2. Copyright © 2010-2014 Tutorhelpdesk.com About Macro: 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. Macro Economics Problems and Solutions Problem (A): Suppose the level of autonomous investment in an economy is $100crores and consumption function is c=100+0.8y i) Find out equilibrium level of income. ii) Write the corresponding saving function and verity the equilibrium level. Solution: i) We know that at equilibrium Y= C+I = 100+0.8Y+100 => 0.2Y=200 => Y = $1000 Crores.
- 3. Copyright © 2010-2014 Tutorhelpdesk.com II) S=-a+ (I-b) Y =-100+ (I-0.8) Y=-100+0.2Y At equilibrium, S=I =>-100+0.2Y=-100 =>0.2Y=200 =>Y=$1000 Crores Problem (B): For the saving function S=-500+0.2Y at what level of income. i) Saving will become Zero. ii) Saving will be equal to investment, if the autonomous investment is $100 crores. How the equilibrium level of income changes, if autonomous investment increases to $150 crores. Solution: i) S =-500+0.2Y=0 => 0.2 Y =500 Y=2500crores Hence, saving will become zero, when the level if income is $2500 crores. ii) Saving is equal to investment at equilibrium therefore, S=-500+0.2Y =I0 =100 =>0.2 Y=600 Y=rs3000 crores When autonomous investment rires to $150 crores, at new equilibrium level S=-500+0.2Y=150 =>0.2 Y=650 => Y=3250 Crores Problem (C): Using basic equation Y = C+I, find the equilibrium level of income, if a =$50 crores, b = 0.75 and I = $2,000 crores. Solution: We know that Y = C+I =a+bY+I = 50+0.75Y+2,000 At equilibrium level of income Y = 2050+0.75Y => 0.25 Y = 2050 => Y = $8200 crores.
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