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Discuss the factors that might explain why the UK's forecast long-term trend rate of growth was reduced. (15 marks)
Evaluate supply-side policies that could be used to increase the UK's rate of economic growth. (20 marks)
Forecast the demand for the rice for a country for the year 2019 on the basis of 7-year data given in table:
Year 2012 2013 2014 2015 2016 2017 2018
Population (millions) 10 12 15 20 25 30 40
Rice consumed (million tonnes) 40 50 60 70 80 90 100
The sales of a company in million of rupees for the years 1994-2001 are given below:
Year: 1994 1995 1996 1997 1998 1999 2000 2001
Sales: 550 560 555 585 540 525 545 585
Fit a trend Line
Estimate the sales for the year 1993.
Suppose that government spending was increased by 15 million and that this increase was financed by a 15 million increase in taxes. Would equilibrium income change or remain the same as a result of these two policy actions and why is it important? If equilibrium income changed, in which direction would it move, and by how much? Explain.
Explain carefully why the tax multiplier [ΔY/ ΔT = -b/ (1-b)] is negative and why it is
smaller in absolute value than the government expenditure multiplier [ΔY/ ΔG = 1/ (1-
b)].
1. In the simple Keynesian model, an increase of one dollar in autonomous expenditure will
cause equilibrium income to increase by a multiple of this one dollar increase. Explain the
process by which this happens using different approached of explanations..
What is the simple keynesian model?
Sara consumes only apples. In year 1, red apples cost $1 each, green apples cost $2 each, and Sara buys 10 red apples. In year 2, red apples cost $2, green apples cost $1, and Sara buys 10 green apples.
• Compute a consumer price index for apples for each year. Assume that year 1 is the base year in which the consumer basket is fixed. How does your index change from year 1 to year 2?
• Compute Sara’s nominal spending on apples in each year. How does it change from year 1 to year 2?
According to FRED, in the fourth quarter of 2014, the labor force was 2,394,000, employment equaled 2,254,500, and working-age population was 2,984,600 in New Zealand. Calculate the a. Labor force participation rate
