Macroeconomics coursework Example | Topics and Well Written Essays - 1500 words

Macroeconomics - Coursework Example (6 marks) c)First-order conditions: Uc(C , l) – l = 0 Ul(C , l) – lzFN(K , h – l) = 0 zF(K , h – l) – G – C = 0 When the first two conditions arcombined Hence, in equilibrium MRTl,C = MRSl,C = w Which states that the Pareto optimum is the point where the indifference curve is tangent to the PPF? d) What happens to consumption, wages and output as G increases? (6 marks) After the increase in g = G/Y, the model can be able to predict a decrease in (c, w), increase in (Y,N, r), spending of Private consumption is â€Å"crowded out† by government spending increase. Output increases but welfare loss as both c, l fall.T (Besada and, Miras (2002) Question 2) a) Solve for labor supply as a function of t. (6 marks) Since w = z, we obtain the system Ul(C , l) – z(1 – t)Uc(C , l) = 0 C + G – z(h – l) = 0 Totally differentiating these gives [Ucl – z(1 – t)Ucc]dC + [Ull – z(1 – t)Ucl]dl  œ zUcdt = 0 dC + zdl + dG = 0 We had 2 equations from the previous sections: C = w(1 – t)(h – l) (1) C = z(h – l) – G (2) By substitution, we will have G = zt(h – l) It indicates the total spending by the government that equals total tax revenue. b) Sketch the Laffer curve for values of t from 0 to 1. (4 marks) Laffer curve c) What is the equation for t that maximizes tax revenue G? Either graphically or by other means, find this value numerically. (6 marks) The equation is as below; G = tz[h – l(t)] Basing on the curve above, the tax revenue is zero if t = 0 and t = 1 Therefore the numerical value is 0.5 Government maximizes tax revenue at t = t*. REV = REV* d) If G=0.2, find (either graphically or otherwise) the two values of l and t that satisfy this requirement. (4 marks) If G=2 then l and t is as below Question 3) Calculate the % year-to-year growth rates in each series, and graph them using a time series plot and a scatter plot (4 mark s) Scatter plot Time series (b) Are they positively or negatively correlated? (3 marks) They are positively correlated c) Does one lead the other? (3 marks) Basing on the graphs it is evident that one leads to the other d) Do the same using quarterly GDP and quarterly M2. Is there any consistency between M2-IIP and M2-GDP? Explain. (10 marks) Scatter plot Time series Basing on the graphs, there is no consistency between the two. This is because there is no correlation and one doesn’t lead to the other and the range or interval between one value is to small. Question 4) (a) Draw the consumer’s budget constraint, and show the optimal choice of consumption and leisure. Is it possible that the consumer may only choose an income of X? (8 marks) Consumer budget constraint The equality above holds at point H where the curve of indifference is tangent to the budget constraint and it is not possible for the consumer to choose an income of X b) What happens when the threshold va lue X decreases, explaining in terms of income and substitution effects; consider the cases of (i) someone whose income was initially below X and (ii) someone whose income was initially above X. (12 marks) When the value of X threshold decrease the impact is for example marginal substitution rate diminishes over time due to there is a diminishing marginal utility principle (Becker, 1965). Question 5) (a) Show how an increase in such government spending

Social Media's Small, Positive Role in Human Relationships Assignment

Social Media's Small, Positive Role in Human Relationships - Assignment Example She supports this claim by stating that the people are using extensive amounts of data when conversing on the social media platforms. People are using social media to maintain connectivity between themselves and people with whom connectivity could not have been possible without social media. Surveys also indicate that most families view social media is a way of improving their family lives since it enables them to keep in touch more frequently. The author’s purpose is to show the flaws that exist in the research and articles that condemn social media as one of the ways that lead to isolation and disconnect. This is to persuade the society to view social media in a different way and embrace its powerful connectivity capabilities. The intended audience includes social media users and its opponents. The author intends to inform the opponents of the mistakes they make when they overlook the positive part of social media, which she advocates for. This article is very significant to the contemporary world as it seeks to challenge a view by the majority who view social media as source of isolation. The article shows the capabilities of social media that should not be overlooked with specific concern to connectivity. Tufekci, Z. (2012). Social Medias Small, Positive Role in Human Relationships. Retrieved from