EC101 Principles of Macroeconomic: Semester 2, 2016
UNIVERSITY OF THE SOUTH PACIFIC
School of Economics
EC101: Principles of Macroeconomics
Tutorial 1
Semester 2, 2016
_
[Week commencing Monday 18 July]
SOLUTIONS
Part 1:
Introduction Activities conduct du
FM101: FINANCIAL
MATHEMATICS
Derivatives &
Techniques of
Differentiation
Week 3 Lectures 1 & 2
Aim/ Objective
Learn to use the different
techniques of differentiation to
find derivatives of functions.
Use
derivatives
to
analyze
accounting
and
economics
Problem 2.10
Recording transactions and preparing financial statements
Financial balances for Ho Ming Wee, Solicitor, on 30 June 2016 are given below in a table in accounting equation form
Assets
Cash at
Bal.
1.
Accounts Receiv-
Office
Liabilities
Account
EC 101 DFL SEMESTER 1, 2016 TUTORIAL 2 Text Book Chapter 18 (7th ed) SG Unit
6
Multiple Choices
1. Economic growth can be defined as an increase in a nations
A. total money supply B. total money income C. total real wages D. total real output
2. The best
EC 101 DFL TUTORIAL EXERCISE 1 TOPIC 1 & 2
Multiple Choices
1. The role of an assumption in an economic theory is to:
A. Add realism B. prove the accuracy of the theory C. cover special cases D. simplify the theory
2. An economic model is: A. a value judg
WELCOME!
TO THE FIRST LECTURE SESSION
FOR
EC101 PRINCIPLES OF
MACROECONOMICS I
GROUND RULES!
Students should keep their mobile phones
switched off during lectures and tutorials.
Students should not talk or discuss when
the lecturer or tutor is talking.
St
Flash Cards
Term
Definition
Economic Growth
Term
The annual percentage change of real GDP
Definition
What is the formula to calculate Growth rate of
real GDP?
Growth rate of real GDP
=
Real GDP in Crrnt yr. - Real GDP in prvs yr.
Real GDP in previous yr.
FM101 Wk1 Tutorial Sheet 1
Find the equation of the line where the is intercept is 5 and is perpendicular to = 2.
2.
3. Solve the following systems of equations; using the
Graphical Method
Elimination and Substitution Method
4. Determine the value of for
Topic 3 Monitoring Jobs and
Inflation
7t ed: Chap 19
h
The Consumer Price Index (CPI)
CPI a measure of the overall cost of a fixed
basket or market basket of goods and
services bought by a typical household
Index a number that shows the average
price of a
EC101 Principles of Macroeconomic: Semester 2 2016
UNIVERSITY OF THE SOUTH PACIFIC
School of Economics
EC101: Principles of Macroeconomics
Tutorial 2
_
(Week commencing Monday 25 July)
SOLUTIONS:
At the end of this tutorial students should be able to:
Dis
EC 101 DFL SEMESTER 1 2016 TUTORIAL EXERCISE 3 Text Book MFP Chap 19 - 7th ed),
Study Guide Units 4 & 5
Multiple Choices
1. Official unemployment rate statistics may tend to: A. over-state the amount of unemployment
by including part-time workers in the
EC 101 DFL SEMESTER 1 2016 TUTORIAL EXERCISE 3 Suggested Answers
Multiple Choices
1. D 2.D 3.C 4.B 5.B 6.C 7.B 8. A 9.C 10.D
Technical Questions
1
Labour force the total number of people available for work. This comprises the employed and
unemployed but a
EC 101 DFL Semester 1, 2016 Tutorial Exercise 5 Text Book Chapter 24 (7th ed)
SG Unit 7
Multiple Choices
1. The amount of real GDP that will be purchased at each possible price level is shown by the:
A
B
C
D
Aggregate supply curve
Aggregate demand curve
EC 101 DFL SEMESTER 1 2016 TUTORIAL EXERCISE 4 Text Book MFP Chap 20 (7th ed),
Study Guide Unit 3
Multiple Choices
1. Which of the following would be the best economic measure to compare standards of living
among nations over time: A. aggregate demand ov
EC 101 DFL: UNIT 1 INTRODUCTION TO MACROECONOMICS
To better understand how the economy work and be able to apply economic theories and
principles to your everyday life, YOU MUST THINK LIKE ECONOMISTS. To think like
economists, you must read and take note
EXPENDITURE = OUTPUT = INCOME
GDP at factor Cost the portion of GDP that
reflects payments to the factors of production
i.e the sum of compensation of employees,
gross operating surplus and gross mixed
income
Non income charge: Net Indirect Taxes
Indirect
7th ed: Chap 20
The Basics of Economic Growth
Economic growth the growth of real
output (real GDP) of an economy over time
Economic growth rate the annual
percentage change in real output:
Real GDP growth rate =
Real GDP in current yr -Real GDP in previou
GROSS DOMESTIC PRODUCT
GDP or Gross domestic product is the
aggregate market value of all final goods
and services produced in the economy
during a given time periodusually a
year.
GDP (OUTPUT) = INCOME = EXPENDITURE
Gross means before subtracting the
dep
6th ed: Chapter 24
5th ed: Chapter 22
AD & AS model: model used to explain short-run
fluctuations in the level of economic activity
(output, employment, income).
How real GDP and price level are determined
and how they interract.
Key Facts: Economic
Fluct
Economics 102
Homework #2
Due: February 1st at the beginning of class
Complete all of the problems. Please do not write your answers on this sheet. Show all
of your work.
1. Suppose people only consume 3 different goods. The following table shows the
pric