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A farmer grows a kilogram of wheat and sells it to a Miller for $1.00. The Miller turns the
wheat into flour and then sells the flour to a baker for $3.00. The baker uses the flour to
make bread and sells the bread to an engineer for $6.00. The engineer eats the bread. What is
the value added by each person? What is GDP?
Suppose a survey by the Department of Roads in 2019 revealed that 60% of the vehicles travelling on Suva-Nadi Highway, where speed limits are posted at 80 kilometres per hour are found to be exceeding the limit. Suppose you randomly record the speed of 10 vehicles travelling on the highway as part of your internship. The sample size of the entire survey is not disclosed to you. Compute the following probabilities. Showing all working. a) P (X = 2). b) P (X = 5). c) P (X = 10).
A researcher classifies students according to their residence (urban or rural) and hours of paid work per week. He randomly selects one student. Residence 0 1–10 11–20 Over 20 Urban 0.06 0.20 0.15 0.06 Rural 0.12 0.18 0.20 0.03 a) If the student selected is from a rural region, what is the probability that he works between 1 and 10 hours a week? b) If the selected student works more than 20 hours a week, what is the probability that the student resides in an urban region?
The following data represents the age (in years) of a sample of 25 members of parliament in a South Asia. 20 40 56 23 42 61 27 42 64 28 43 31 44 33 44 35 47 35 48 36 49 38 52 39 53 a) Compute the coefficient of variation. b) Compute the range approximation to the standard deviation of the data.
A simple closed economy with an mpc equal to 0.5. Investment spending has suddenly fallen, reducing aggregate demand and output to a level that is 100 million below Y*.
i. If the government decide to try to get the economy back to full employment using only an increase in government spending, by how much would G need to be increased?
Briefly explain the meaning of each equation in the above model. What are the values of d Y C , r I , LY and
S Nw . Give economic interpretation of each.
Q.1 Consider the following information about a hypothetical economy:
1. Y = A ( ) 0.025K − 0.5N N
2. A=2/3
3. K = 2000
4. N^s=-18+(18/5)w
5. C=200+(2/3)(Y-T)-300r
6. T=-75+(1/4)Y
7. I =100−100r
8. G =100
9. L = 0.5Y − 200i
10. M = 6300
11. 0.10
Now using this information, answer the following:
(i) Starting from the initial equilibrium position again, suppose that the capital stock increases by 170. What
will be the impact of this expansion on labour market equilibrium and aggregate supply of output?
Calculate values of all endogenous variables and give intuitive explanation of the results.
(j) Compare the equilibrium positions in (d) and (i) indicating all points.
(k) Suppose that Li → ∞ in Equation.9 of the model. How will it affect the shape of the money demand and
the LM curve. Will the monetary policy of part (e) have the same effect as calculated above or any
different? Explain using graphs and multipliers.
Q.1 Consider the following information about a hypothetical economy:
1. Y = A ( ) 0.025K − 0.5N N
2. A=2/3
3. K = 2000
4. N^s=-18+(18/5)w
5. C=200+(2/3)(Y-T)-300r
6. T=-75+(1/4)Y
7. I =100−100r
8. G =100
9. L = 0.5Y − 200i
10. M = 6300
11. 0.10
Now using this information, answer the following:
(g) If government wants to attain same output change as in part (e) using fiscal policy rather than the
monetary expansion, by what amount should it change its policy instruments. Analyze all possible options
the government may exercise. What will be the effect of such policies on all endogenous variables?
(h) Compare the equilibrium positions in (d) and (g) in one graph indicating all points.
Q.1 Consider the following information about a hypothetical economy:
1. Y = A(0.025K-0.5N)N
2. A=2/3
3. K=2000
4. N^s=-18+(18/5)w
5. C=200+(2/3)(Y-T)-300r
6. T=-75+(1/4)Y
7. I =100−100r
8. G =100
9. L = 0.5Y − 200i
10. M = 6300
11. π^e= 0.10
Now using this information, answer the following:
(k) Suppose that Li → ∞ in Equation.9 of the model. How will it affect the shape of the money demand and
the LM curve. Will the monetary policy of part (e) have the same effect as calculated above or any
different? Explain using graphs and multipliers.
Q.1 Consider the following information about a hypothetical economy:
1. Y = A(0.025K-0.5N)N
2. A=2/3
3. K=2000
4. N^s=-18+(18/5)w
5. C=200+(2/3)(Y-T)-300r
6. T=-75+(1/4)Y
7. I =100−100r
8. G =100
9. L = 0.5Y − 200i
10. M = 6300
11. π^e= 0.10
Now using this information, answer the following:
(h) Compare the equilibrium positions in (d) and (g) in one graph indicating all points.
(i) Starting from the initial equilibrium position again, suppose that the capital stock increases by 170. What
will be the impact of this expansion on labour market equilibrium and aggregate supply of output?
Calculate values of all endogenous variables and give intuitive explanation of the results.
(j) Compare the equilibrium positions in (d) and (i) indicating all points.
#333702 on Dec 2022