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(a) If year 2 is the base year, give the price index for year 3.
(b) Give the nominal GDP for year 4. $120
(c) What is the real GDP for year 4?
(d) Tell which years you would deflate nominal GDP and which years you would inflate nominal GDP in finding real GDP.
C 150+0.5Y.
1 = 300-150r.
Ms = 500,
L=0.50y+200-150r of which kPY = 0.50y and hr = 200-150r.
TAX = 50
GOVERNMENT EXPENDITURE = 500
Find (a) the equilibrium level of income and the equilibrium rate of interest, and
(b) the level of C, I, and L when the economy is in equilibrium.
(c) If the money supply increases from 500 to 600, What happen to the equilibrium level of income and the equilibrium rate of interest
What are C,I, KPY and hr at the new equilibrium?
(d) If autonomous investment falls from 300 to 150, what will happen on our entire economy?
In no more than 400 words, explain the impact of COVID19 crisis on any economy of the Pacific (of your choice). Discuss specifically its impact on GDP, trade, inflation, employment and business activity. Supplement with the relevant national statistics, where possible.
Show using the IS-LM graph the impact of an expansionary fiscal policy if the LM curve is vertical. If you were the Economic Planner in this country, how would you implement the fiscal policy without causing any crowding out of private investment? (You may insert a snapshot of the graph if drawn manually)
write about the literature review about the economic growth, human welfare and trade
Discuss some literature review about the impact of covid 19 on the economic growth, human welfare and trade.
Definition of public sector wage Bill
Definition of expenditure control measure
When the interest rate level decreases the demand for_
Show in a diagram the effect on the demand curve, the supply curve, the equilibrium price, and the equilibrium quantity of each of the following events.
a). The market for newspapers in your town
Case 1: The salaries of journalists go up.
Case 2: There is a big news event in your town, which is reported in the newspapers.
b). The market for St. Louis Rams (a professional football team) cotton T-shirts
Case 1: The Rams win the Super Bowl competition.
Case 2: The price of cotton increases.
c). The market for bagels
Case 1: People realize how fattening bagels are.
Case 2: People have less time to make themselves a cooked breakfast.
d). The market for the Krugman and Wells economics textbook
Case 1: Your professor makes it required reading for all of his or her students.
Case 2: Printing costs for textbooks are lowered by the use of synthetic paper.
