Macroeconomics Answers

Real government investment 10 billion so How to calculate government investment per capita? Please tell me the formula.

Thanks

Use fishers model of consumption to analyze the increase in second period income. Compare the case in which the consumer faces a binding borrowing constraint and the case in which he does not

1.     Briefly explain any THREE (3) different approaches that are used to measure Gross Domestic Product (GDP). (6 MARK)

2.     Distinguish between ‘Gross Domestic Product’ and ‘Gross National Product’.( 4marks)

3.    The table below shows the value of nominal GDP and price index of a country:

Year price index Nominal GDP

2008 100 RM 40,000 million

2009 107 RM 48,000 million

(i)              Calculate the value of Real GDP in 2008 and 2009. (6marks)

(ii)              Calculate the rate of economic growth between 2008and 2009. (3marks)

Using the information below, answer the following questions

a. Assume a private closed economy, find the multiplier & equilibrium GDP

b. Graph the data provided in table above, and show the equilibrium point graphically. Calculate changes in

unplanned inventory at each level of GDP.

c. Discuss mathematically different conditions that prevail at the equilibrium point for a private closed economy

d. Assume an open economy, find the multiplier & equilibrium GDP

e. Use the same graph in (b) and show the change in equilibrium as a result of switch from closed to open economy

f. Now assume that instead of Imports = 20 , the new import function M=10 +0.1Y , how would the equilibrium

point change

Q1. The following transaction table represents an intersectoral interaction in a hypothetical economy. The economy has three sectors: Agriculture (AGR), Manufacturing (MNF), and Service (SER). AGRR MNF SER Final Demand Total output AGRR 20 40 40 20 120 MNF 10 5 20 90 125 SER 40 80 30 50 200 Value added 50 0 110 Total input 120 125 200 (a) Extract the A-matrix, the matrix of technical coefficients. (b) Calculate the Leontief, (𝐼 − 𝐴), matrix. (c) Calculate the Leontief inverse, (𝐼 − 𝐴) ିଵ, matrix. (d) Calculate the multiplier effect of a unit change in final demand of the agriculture (AGR) sector on total output. (e) Calculate the multiplier effect of a unit change in final demand of the manufacturing (MNF) sector on total output. (f) Calculate the multiplier effect of a unit change in final demand of the Service (SER) sector on total output. (g) Decompose each of these effects (in d, e, and f) into direct and indirect effects and interpret their meanings. 

What, in your opinion, are the worst aspects of globalizations

In a private closed economy _____ investment is equal to saving at all levels of GDP and equilibrium

occurs only at that level of GDP where _____ investment is equal to saving.

 Assume that the required reserve ratio is 25 percent, The desired currency to deposit ratio and the desired excess reserve ratio are both zero. If there is an open market purchase of Rs. 250000/-. What will happen to the following? (i) Total deposits of the banking system (ii) (iii) Loans Total reserve

(b) Assume that the required reserve ratio is 25 percent, The desired currency to deposit ratio and the desired excess reserve ratio are both zero. If there is an open market purchase of Rs. 250000/-. What will happen to the following? (i) Total deposits of the banking system (ii) (iii) Loans Total reserve

1.     Statistics Canada reported the following data for 2015:

Labor force: 20.4m, employment: 17m, working age Population: 26.7m. Calculate the number of people unemployed in 2015, unemployment rate and labor force participation rate.