test1solutions

# test1solutions - 1 C omplete f ollowing t able(Total 1 0 p...

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1- Complete following table: (Total 10 points) 1 point for tlis a'td 0.75 point for each ofothels. 110.24A0 1584.1541 1410.3936

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2)- (Total25 points) a)- (Total 10 points) Nominal GDlnnu = \$50x10+\$1x100+\$4xi00 \$1000 Nominal GDP,nn, - \$80x 15 + \$3 x 120 + \$9 x 80 \$2280 Real GDP,nnr,o",",ns6 \$50 x i 5 + \$ 1 x i 20 + \$4 \$ 1 1 90 Real GDP,nnu^*",rs, \$80x10+\$3x100+\$9x100 \$2000 Growth rate of 2280 -2000 2000 1190-1000 1000 x 100 19% (1.5 point) (1.5 points) (2 points) rael /-l T-\D '""- v"'lrrtTlA<10r7 Growth rate of 'rq'u"'r997/baser99. 100 lrt% (r point) b)- The reason for this problem is due to changing price mtios fiom year to year. For example price ratio betrveen clothing and entefiainment has changed liom 1/,1 to 1/3. (3 points) c)- In chain weighting method, the growth mt€ ofreal GDP fbr any year is th€ geonetdc average of grouth rates ifthis year is the base year a,rd ifiast yeiu is the basc year, i.e.: As it is sccn, the problem with base year method is that the growth rate ofGDP iri year i997 would be different, depending oo the selection ofthe base. Crolr th of , - -la/I.t4.1.t9 I l' 100 .16.41Yo real cDPrer- d)- (Total l0 points)
3)- (Total25 points) a)- (4 points, 1 point each) Hish-power monev: The money which is put in ci'culation directly by the central Bank. It is equal

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test1solutions - 1 C omplete f ollowing t able(Total 1 0 p...

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