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Explain with an aid of graph what happens to the rand/dollar exchange rate and the equilibrium quantity of dollars if south african exports to the united states increase
The rate of economic growth per capita in France from 1996 to 2000 was 1.9% per year, while in Korea over the same period it was 4.2%. Per capita real GDP was $28,900 in France in 2003, and $12,700 in Korea. Assume the growth rates for each country remain the same.
- Compute the doubling time for France’s per capita real GDP.
- Compute the doubling time for Korea’s per capita real GDP.
- What will France’s per capita real GDP be in 2045?
- What will Korea’s per capita real GDP be in 2045?
Explain, with the aid of a graph, what will happen to the rand/dollar exchange rate and the equilibrium quantity of dollars if South African exports to the United States increase.
(Hint: In your answer, also comment on the effect on the current account of the balance of payments as well as on the level of domestic prices.)
(Note: Four marks for the graph and six marks for the explanation.)
Explain, with the aid of a graph, what will happen to the rand/dollar exchange rate and the
equilibrium quantity of dollars if South African exports to the United States increase.
(Hint: In your answer, also comment on the effect on the current account of the balance of
payments as well as on the level of domestic prices.)
(Note: Four marks for the graph and six marks for the explanation.)
Explain how the price mechanism allocates resources in an economy
Difference between Consumer price index and Sensitive price index
and X If the price of X1 is Bin 100 and the price of X2 is Birr 120 per unit
A. Show the effect of fall in income to Birr 8.000 on the vertical intercept, horizontal intercept and
slope of the budget line
B. Show the effect if the price of good X1 decreases to 60 birr per unit as price of X2 holds constant
C.Show the effect if the price of good X2 decreases to Wire 100 bir per unit as price of good
remains constant
D. Show the effect on the budget line if prices of both commodities changed proportionately
Convert from nominal to real and calculate economic growth for the applicable years:
2011 2012 2013 2014 2015
20K 23K 25K 28K 30K
10% 9% 10% 8%
. Suppose a series of terrorist attacks destroy half the capital in the United States but does not affect the population. What will happen to potential output and to the real wage?
