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Popeye’s income declines and, as a result, he buys more spinach. Is spinach an inferior or a normal good?
1. The Ghanaian economy typical of most economies in the world consists of individuals and institutions that hold money for different purposes. Given the current fractional reserve banking system being operated in the country where commercial banks out of excess reserves :
a. Derive an expression that shows how money supply is determined in the Ghanaian economy. (10marks)
b. Find the money multiplier and briefly explain the effects of currency to deposit ratio (cr) required reserve ratio (rr) and excess reserves (er) on the money supply process. (5marks)
c. Determine the value of money supply in the economy if total currency in circulation is ¢600 million and a sum of ¢200 million is held the books of the Bank of Ghana reserves. Other relevant estimates include: a currency to deposit ratio of 0.2, required reserve ratio of 0.1 and excess reserve ratio of 0.1 (5marks)
5) Explain briefly the relationship between the government fiscal policy and the level of national debt
6) Briefly distinguish between the Traditional view and the Ricardian view, the effects of government budget deficit on the following: consumption, National Income, unemployment
7) Which two factors limit the Life Cycle Hypothesis and Permanent Income Hypothesis in explaining all of consumption behavior ?
1. Write an expression that illustrates the government's intertemporal budget constraint
2. What are the two important indicators in describing the sustainability of the government's fiscal position ?
3. Derive an expression that illustrates a sustainable time path for government's fiscal policy
4. State four (4) problems associated with the measurement of fiscal deficit
A firm operating in a competitive industry has it cost function as TC =100+4Q-10Q²+⅓Q² if the market price P=30
Require
Find the profit maximizing unit of outline and the total profit at the level of output ratio
What is an infrastructure bill?
In Maryland, only three goods are produced domestically - popcorns, movie tickets, and diet drinks. The following table shows the price and quantities of these goods produced in the year 2018, 2019, 2020. 2018 is the base year
The market bundle for a typical family is 3 popcorns, 3 movie tickets and 5 diet drinks.
Calculate Nominal and Real GDP in all three years.
Calculate real economic growth rate in 2020
Calculate CPI in all three years.
Calculate inflation rate in 2020
2019
2020
2021
P
Q
P
Q
P
Q
Popcorn
1
500
1
600
1.05
590
Movie ticket
5
300
10
200
10.5
210
Diet drink
0.7
300
0.8
400
0.75
420
Argue for and against the application of the Income-Saving investment theory to the modern economy
If the consumption function is
C = 50+2√Y
calculate MPC and MPS when Y = 36 and give an interpretation of these results.
In Maryland, only three goods are produced domestically - popcorns, movie tickets, and diet drinks. The following table shows the price and quantities of these goods produced in the year 2018, 2019, 2020. 2018 is the base year
The market bundle for a typical family is 3 popcorns, 3 movie tickets and 5 diet drinks.
Calculate Nominal and Real GDP in all three years.
Calculate real economic growth rate in 2020
Calculate CPI in all three years.
Calculate inflation rate in 2020
2019
2020
2021
P
Q
P
Q
P
Q
Popcorn
1
500
1
600
1.05
590
Movie ticket
5
300
10
200
10.5
210
Diet drink
0.7
300
0.8
400
0.75
420
#340153 on Dec 2023