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Suppose that an exogenous disturbance, such as a change in government policy, leads to a balance of payments deficit and a consequent fall in the exchange rate. Discuss the effects of the new exchange rate levelon the balance of payments and the exchange rate.
(a) Market loans (b) Reserves with the Bank of Ghana (c) Cash (d) Personal loans (e) Sale and repurchase agreements (repos) (f) Mortgages (g) Government bonds (of from one to five years to maturity) High liquidity ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... Low liquidity
(a) Large-scale deposits made by firms at negotiated rates of interest. .............................retail / wholesale (b) Loans made by high street banks at published rates of interest. ..................................retail / wholesale (c) Deposits in savings accounts in high street banks. ......................................................retail / wholesale (d) Deposits in savings accounts in building societies .......................................................retail / wholesale (e) Large-scale loans to industry syndicated through several banks. ................................retail / wholesale
2011 Ghc1 100 Ghc2 50 2012 Ghc1 200 Ghc2 100 2013 Ghc2 200 Ghc4 100 Base year: 2011 Required: a. Compute for each year the i. nominal GDP, ii. real GDP, (3marks) iii. the GDP deflator. (3marks) b. Compute for 2012 and 2013 from the respective preceding years the percentage change in i. nominal GDP, (ii. real GDP, iii. the GDP deflator (2marks) 2 iv. For each year, identify the variable that does not change. (1mark) Explain in words why your answer makes sense. c. Did economic well-being rise more in 2012 or 2013? Explain.
(1983-2000 and 2001-2018). Explain fully the difference in the estimates of the two
periods for both equations. [Hint: Use the average annual GDP growth rate for each
period as the normal growth rate for the Okun’s law equations and use the period average
unemployment rate as the natural rate of unemployment for the Philips curve equation.
TRUE or FALSE. Give reason(s) in support
of your answer.
i. Higher the marginal propensity to consume,
higher is the size of multiplier
ii. If investment is very sensitive to interest rate,
then we have a flat IS curve
(c) Use the following information (in rupees):
Income (Y) = 1,00,000
Nominal Money Supply (M) = 80,000
Price Level (P) = 20
Calculate the money growth rate required to
finance the budget deficit of Rs.10,000 in an
economy.
What are the special properties of the Cobb-Douglas production function, and how might the function be used to calculate the sources of growth?
Qd = β0 +β1Psh +β2M+β3Pcg+β4Ax+ β5C
Where,
Qd = Quantity demand for a deluxe room in sh
Psh = Price of a deluxe room in sh (US$/room) = US$. 200.00
M = Visitors per capita income (US$/Day) = US$ 120
Pcg = Price of a deluxe room in CG (US$/room) = US$. 150.00
Ax = Average advertising expenditure in sh (US$/room) US$. 18.00
C = Customer Satisfaction Index = 8.56
DV: Q R- Square: 0.86 T table value 1.671
No of obse: 62 F- Ratio: 154.15
Var Para Esti SE
β0 127.8 49.6
β1 -1.3.0 0.42
β2 2.75 1.01
β3 2.55 1.21
β4 1.41 0.48
β5 1.85 0.23
a) Are estimated parameters comparable with economic theory? Explain
b) Construct the Total Revenue (TR) function of Sh hotel and determine the TR maximize demand
b) What are the significant parameters that could be impact on the demand for a deluxe room
c) Calculate and interpret, cross-price elasticity, income elasticity, and advertising elasticity of demand for a deluxe room
d) Calculate Adjusted R2 and interpret it.
You are the manager of a firm that receives revenue of Rs.30,000 per year from products X and Rs. 70,000 per year from product Y. The own-price elasticity of demand for product X is -2.5 and the cross-price elasticity of demand between product Y and X is 1.1. How much will your firm’s total revenue (revenues from both products) change if you increase the price of good X by 1 present?
#340153 on Dec 2023