Macro Assignment Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Macro Assignment Case Study Help

Part D solution

In short-run, an increase in investment will increase the employment opportunities and the tax collection will also increase with an increase in tax rates.

Question 2:

Part A: Solution

In short-run mostly investment is made on short-run basis and won’t help the investor in long -run. Companies normally face losses in long-run at the initial stage. But when we talk about short-term; the investors will earn more than they invested. It will have positive impact on GDP.

Part B: Solution

Most of the countries import oil and if prices of oil increase, it will directly affect the price of each product in the market, which will lead the country towards an inflation. In short, inflation will increase with an increase in the price of oil in the market. It will negatively affect the GDP. Norway is enriched in oil, an increase in its product (oil) will positively impact the country’sGDP, and Switzerland is one of the largest importers of oil. If there is an increase in the prices of imported products, it will negatively impact theGDP. In short, with an increase in oil prices, the GDP of Norway will have an impact, and as for Switzerland, its GDP will get negatively affected......................................

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