Problem 2 (Purchasing Power Parity and GDP)
Big Mac Index
Actual dollar exchange
price in local
rate July 25th
Problem 12 (Crowding-out effect)
I. Assume that the economy is closed and it starts at the natural level of output.
a) Make an AD-AS diagram and show the initial equilibrium.
b) What is the level of real wage rate implied by the PS relation (use a standar
Problem 12 (Labour market: natural rate of unemployment)
Data in the table describe Polish labor market in the 3rd quarter of 2015.
Inflow (newly registered)
Outflow (withdrawn from registers)
Problem 14 (Budgetary and crowding-out under flexible exchange rate).
Suppose that initially an open economy is in a medium term equilibrium. Exchange rate
can fluctuate freely. Then the government increases permanently its spending by 10%.
Use the follow
Problem 6 (Equilibrium in the money market)
Suppose the following assumptions hold: (i) the share of currency in the total demand for
money is 20%; (ii) the ratio of reserves to deposits is 15%; (iii) the demand for money is
given by: M d
. Initially t
Problem 13 (Supply side shock and the medium-run; based on Blanchard, 2006, p. 162).
Assume that there is a permanent increase in unemployment benefits. Initially the
(closed) economy was at the natural level of output.
a) Using the AS-AD model, show the
Problem 8 (Uncovered interest rate paritv; based on Blanchard, 2OO6, o. 393)
C o n s i d e r w o b o n d s ,o n e i s s u e di n e u r o si n G e r m a n y ,a n d o n e i s s u e di n d o l l a r si n t h e
U.S. Assume that both governmentsecurities
Problem 10 (Monetary policy under fixed exchange rate)
I. Assume that initially exchange rate is fixed (pegged) at the level E and that the peg
is credible (expected exchange rate is equal to the peg). Initially the foreign exchange
(FOREX) market is in e
Problem 7 (Subsidies for investors and monetary policy)
consumption depends on disposable income
the rate of interest and subsidies are the only determinants of investment
the economy is closed
government spending, taxes and subsi
Problem5 (Speculativemotiveof demandfor monev)
Assumethat moneyand bondsare the only two types of assets.Face value of one-year
bondis 1000 PLN. Its current priceis 952.38PLN.
a) Whatis the rate of return on holdingthe bond(interestrate on the bond) for t
Problem 3 (The paradox of saving)
Consider the standard model of the economy in which government spending, taxes and
investment are exogenous and consumption depends on disposable income:
C 30 0.75YD ; I 110; G 150; T 120 .
a) Solve for equilibrium output
Problem 1 (Real and nominal GDP)
Using the data below answer the following questions.
a) What was the growth rate of GDP in 2009?
b) Central Statistical Office (CSO) announced that the economic growth in 2009
amounted 1.6% (http:/www.stat.gov.pl/gus/5840_
Problem 4 (Automatic stabilisers)
Consider the model of the closed economy in which government spending and
investment are exogenous. Consumption (C) depends on disposable income (YD) which is
proportional to the GDP:
C = c0 + c1YD
YD (1 t )Y ,
- System gospodarczy - jego istota ( np. ujcie instytucjonalne),
elementy skadowe (np. wg M.G Woniaka)
1. System gospodarczy - zbir podmiotw gospodarczych i innych instytucji wystpujcych
w gospodarce oraz organizmw i zasad postpowania jednostek ekonomiczn