Macroeconomics Answers

I have a question. Is circulation of money in an economy is worth for increasing the GDP or for development. If yes, then why?

what is agricultural credit proxy for?
what is interest rate proxy for?
for example: exchange rate is proxy for trade or inflation rate is proxy for price level. here credit to agriculture sector are proxy for what? and interest rate is proxy for what?
is credit to agriculture sector is proxy for capital?
if so, is the interest rate also proxy for capital?

I hope to have replying and if you have any reference that I use in my writing it would help me more.

thank you.

I have studied these 1) Gross value added= value of output- intermediate consumption. 2) Net value added= gross value added- depreciation. But how could we say "Net value added = Gross value of output – Value of intermediate consumption"? This formula from the source I have underlined. Source: https://courses.lumenlearning.com/boundless-economics/chapter/measuring-output-using-gdp/

GDP gives the picture from the consumers’ side, while GVA gives the picture from the producers’ side. By definitions of both GDP and GVA "the amount of goods and services PRODUCED in an economy in a year". Here is my question, if both GDP and GVA are 'produced' side according to definition then why GDP from consumer's side and GVA from producer's side? I am confused so please clarify my doubt.

GDP at factor cost= Net value added + Depreciation. Here my question is why depreciation added to Net value added? I am confused here: Net value added = Gross value added - depreciation; so the above formula becomes GDP at factor cost= Gross value added - depreciation + Depreciation. Here depreciation get cancelled and finally becomes GDP at factor cost= Gross value added.

Question 1
Suppose the representative consumer’s utility depends on goods, c and leisure , 24−l, where l is the quantity of hours worked: u = ln c+(24−l).
And suppose the consumer’s production function is c = 6 l. (a) find the equilibrium c, l and u. [24 Marks]
(b) What changes in the production over time would be required to gen- erate economic growth? [4 Marks]

Explain fully how a real depreciation affects output.

With the help of an IS-LM diagram show the effect of restrictive monetary policy on output under flexible exchange rates and with perfect capital mobility.

The people on thohoyandou island buy only juice and cloth the cpi basket contains the quantities bought in 2010 the average household spent $60 on juice and $30 on cloth in 2009 when the price of juice was $2 a bottle and the price of cloth was $5 a meter in the current year 2010 juice is $4 a bottle and cloth is $6 a meter. calculate the inflation rate. (3)

Draw a graph with the AD (aggregate demand), short run AS (aggregate supply) and long run AS curves. Assume the economy is in a state of long run equilibrium. Clearly indicate this on the graph.