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- The IMF forecasted Australia’s real GDP at $A1,730 billion in 2017 and $A1,782 billion in 2018, and Australia’s population at 24.6 million in 2017 and 25.0 million in 2018. Calculate:
- The growth rate of real GDP
- The growth rate of real GDP per person
- The approximate number of years it will take for real GDP per person in Australia to double if the current growth rate of real GDP is maintained.
a. If a large increase in investment increases labor productivity, explain what happens to:
i.Potential GDP
ii.Demand and supply of labor Employment
iii.Employment
iv.The real wage rate
v. Real GDP per person
b. If a severe drought decreases labor productivity, explain what happens to:
i.Potential GDP
ii.Demand and supply of labor Employment
iii.Employment
iv.The real wage rate
v.Real GDP per person
An economy’s capital stock was $46.3 billion at the end of 2016, $46.6 billion at the end of 2017, and $47.0 billion at the end of 2018. Depreciation in 2017 was $2.4 billion, and gross investment during 2018 was $2.8 billion (all in 2007 dollars).
- Calculate net investment and gross investment during 2017.
- Calculate depreciation and net investment during 2018.
In Canada between June and July in 2016, the number of full-time jobs increased by 63,200 while part-time jobs fell by 108,800. The unemployment rate increased from 6.4 percent to 7.2 percent. The labor force participation rate increased from 66.5 percent to 66.6 percent.
i. Explain the link between the rise in the participation rate and the rise in the unemployment rate.
Calculate the nominal GDP for 2016, 2017 and 2018.
Calculate real GDP for 2016, 2017, and 2018.
Calculate growth rate of nominal and real GDP for 2017 and 2018.
Are nominal and real GDPs same for a given year? Please explain. Calculate the inflation rates for 2017 and 2018 using GDP deflator method.
ii. If all the workers who entered the job market were discouraged searches, explain how the R5 unemployment would have changed.
The slope for the Mexico PPF is 1/4 indicating that 4 units of guns are given up for each 1 unit of butter produced
The following transactions are extracted from MNP Ltd. for the year ended on June 30, 2020: (i) Plant assets sold at Tk. 5,300 which was purchased 6 years before for Tk. 20,000. The plant assets were depreciated on a straight-line basis assuming useful life of 10 years with no residual value. (ii) Issued 10,000 shares of Tk. 10 each at a price of Tk. 43 per share. (iii) Issued shares for a 70% interest in ABC Co. for Tk. 9,00,000. (iv) Patent amortization for the year was Tk. 20,000. (v) The company’s net loss for the year Tk. 50,000. Depreciation charged Tk. 22,000 and realized a gain of Tk. 9,000 on the sale of a land for Tk. 39,000. (vi) A 3-months Govt. Treasury Bill of Tk. 1,00, 000 was purchased. Requirement: State the treatment of the above transactions in the Cash Flow Statement of MNP for the year ended on June 30, 2020
a) The article identifies a number of factors behind the recent increase in the price of
aluminium. Mention these factors and indicate whether they are demand-side or supplyside
factors.
b) With the aid of a well-labeled diagram, illustrate the effects of the factors identified
in part (a) above on the equilibrium price and quantity of aluminium. Pay attention to
the statement in the article that “Supply constraints, however, have been more
important” when drawing your diagram.
1. What would the LM curve look like in a classical world? If this really were the LM curve that we thought best characterized the economy, would we lean toward the use of fiscal policy or monetary policy? (You may assume your goal is to affect output.) Explain in 250-300 words using the diagram
2. Show, using IS and LM curves, why money has no effect on output in the classical supply case. Explain in 500 words. Use diagram wherever necessary.
1. Discuss, using the IS-LM model, what happens to interest rates as prices change along a given AD schedule. Explain using the diagram.
2. What is crowding out, and when would you expect it to occur? In the face of substantial crowding out, which will be more successful—fiscal or monetary policy? Explain using the diagram.
X and Y are substitute to one another what happen when price of a substitute increases, show its effects on the demand of the other goods.
