BUS103 Economics Assignment: Macroeconomics Assignment
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Added on 2020-05-28
BUS103 Economics Assignment: Macroeconomics Assignment
Added on 2020-05-28
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Running Head: MACROECONOMICSMacroeconomicsName of the StudentName of the UniversityAuthor note
MACROECONOMICS1Table of ContentsQuestion 1: Measuring GDP and Economic Growth......................................................................2Answer a......................................................................................................................................2Answer b......................................................................................................................................2Answer c......................................................................................................................................2Answer d......................................................................................................................................3Answer e......................................................................................................................................4Answer f.......................................................................................................................................5Answer g......................................................................................................................................5Question 2: Job and Inflation...........................................................................................................6Answer a......................................................................................................................................6Answer b......................................................................................................................................6Answer c......................................................................................................................................6Answer d......................................................................................................................................7Answer e......................................................................................................................................8Answer f.......................................................................................................................................8Answer g......................................................................................................................................8Answer h......................................................................................................................................9Question 3......................................................................................................................................12Global saving glut and U.S Current Account............................................................................12Answer a................................................................................................................................12Answer b................................................................................................................................12Answer c................................................................................................................................13Exchange rate and Balance of Payment.....................................................................................13Balance of Payment...................................................................................................................15Answer a................................................................................................................................15Answer b................................................................................................................................15Answer c................................................................................................................................15Answer d................................................................................................................................16References......................................................................................................................................17
MACROECONOMICS2Question 1: Measuring GDP and Economic Growth Answer aGDP under expenditure approach GDP=Consumptionexpenditure+Investmentexpenditure+Governmentexpenditure+Netexport¿$2000+$800+$400−$200¿$3000Answer bSum of total income = $2900Wages = $2000Statistical Discrepancy = GDP at expenditure approach – GDP at income approach = $3000 - $2900 =$100Total income less wages and statistical discrepancy = $2900 - $2000 - $100 =$800Answer cNominal GDP in 2015 (1000∗$20)+(500∗$10)¿20000+5000
MACROECONOMICS3¿25000Nominal GDP in 2016(1100∗$30)+(525∗$8)¿$33000+$4200¿37200Answer dReal GDP in 2016(1100∗$20)+(525∗$10)¿$22000+$5250¿$27250Chain volume measure of real GDP To determine the chain volume measure of real GDP the following information are needed2015 quantities at 2015 prices = Nominal GDP of 2015 = $25,0002016 quantities at 2015 prices = (1100*$20) + (525* $10) = $27,2502015 quantities at 2016 prices = (1000 *$30) + (500 *$8) = $34,0002016 quantities at 2016 prices = Nominal GDP of 2016 = $37,200GDP growth rate at 2015 prices,27250−2500025000∗100
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