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

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
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)
Background image of page 2
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
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

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

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online