Search & Filtering
What is sticky price model and purpose of sticky price
2. Given the following data, calculate Net Domestic Product (NDP) at market prices: Gross National Product at market prices= US$ 85,000 Depreciation = US$ 3,000 Net factor income from abroad = US$ 2,000
Which of the following statements regarding government spending and the financing of such spending is/are correct?
a) The difference between government spending and borrowing is called the budget deficit.
b) c)
If government finances part of its spending from borrowing from the central bank, this is called inflationary financing.
Income generated from state-owned enterprises forms part of the sources of revenue for government.
The catch-up effect says that countries with low income can grow faster than countries with higher income. However, in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables that affect productivity. Considering the determinants of productivity, list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.
b) What do you see as the essential difference between classical and Keynesian theories of aggregate supply?
Given the following information:
Gov't private expenditure: 40
Gov't expenditure on goods and services: 17.50
Investments: 10.75
Export income from abroad: 12.50
Import income paid to abroad: 11.75
Taxes on expenditure: 9
Capital Consumption: 6.20
General subsidies: 0.75
1. Find GDP, NDP and National income
2. What method of computing is used?
Review the last year’s COVID19 supplementary budget of Fiji (available online) and discuss if the initiatives are adequate to mitigate the pandemic. Discuss the drawbacks, and explain how they may be improved.
Consider a government that runs a budget deficit of 20% of real income and decides to finance it through seigniorage. If people hold real balances equal to 3 months of income what is the monthly growth of money supply that will finance the deficit?
Two soft-drink firms, Fizzle & Sizzle, operate on a river. Fizzle is farther upstream, and gets cleaner water, so its cost of purifying water for use in the soft drinks is lower than Sizzle's by Rs500000 yearly. According to this scenario, Fizzle and Sizzle
Develop a qualitative analysis on income, interest rate, trade balance, and private consumption using the IS-LM-BP model if the Fiji dollar was devalued. Assume perfect capital mobility. Carefully discuss the adjustment processes.
