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micro exam!!!!!!!!!!




Question.;Over a 10-year period, our output growth rate =?Q/Q = 40%, capital;growth rate =?K/K = 30%, labor growth rate =?L/L = 20%;the elasticity of output with respect to capital and labor are aK;= 0.3 and aL = 0.7 respectively. Find productivity growth.?Answer:..;13%,.;11%,.;17%, or.;15%.;Question 18.;3 points;Question 19.;?;Suppose;the Fed purchased $1,200 billion worth of assets in bailing out the financial;institutions and in quantitative easing from 2008 to 2011. A. If the;deposit reserve requirement ratio is 10%, how much is the potential increase in;the U.S. money supply as a result of the Fed?s asset purchase??..;?Your Answer: $_________billion..;?B. Suppose that, as a result of the Fed?s;loose monetary policy, the private sector?s investment (I) increased by $700;billion. In addition, as part of the stimulus plan, government spending;(G) increased by $800 billion as well. Given a marginal propensity to;consume of 70%, how much would the U.S. GDP increase according to the;multiplier model in a closed economy??.;Your Answer: $_________billion..;?C. Following the previous question, suppose;the marginal propensity to import is 10%, how much would the U.S. GDP increase;according to the open-economy multiplier??Your Answer: $_________billion..;?D. Suppose the Fed?s monetary policy;response to the 2008 financial crisis led to an eventual 50% increase in the;money supply, how does this affect the aggregate price level in the United;States according to the quantity theory of money (assuming the velocity of;money and real GDP are constant)??.;Your Answer: % ________increase in the aggregate;price level??;10 points;Question 20.;?;For;a market basket of goods, it costs $1,000 in the United States, and 6,000 yuan;in China (yuan is the unit of the Chinese currency)...;A.;If the exchange rate is 6 yuan per dollar, where would you buy these;goods (assuming there is free trade and no transportation cost between the;United States and China)??.;Choices;are:.;a. Definitely in the United State, not;China?.;b. Definitely in China, not the United;States.;?c. Indifferent since the prices in the two;countries are the same if they are converted to one or the other currency.?.;Your Answer: _________________(a / b / c)?...;B. Suppose inflation is 4% in the United;States and 8.5% in China. What is the new equilibrium exchange rate according;to the purchasing power parity??.;Your Answer: __________yuan/$ (keep two;digits after the decimal point)?..;C. Does the dollar appreciate or depreciate?;By how much??.;Your Answer: (appreciate or depreciate?);?By how much: _________% (keep two digits after;the decimal point)??;10 points;Question 21.;?;Refer;to the 2010 U.S. GDP information below. (Billions of dollars).;A. Was the United States total DOMESTIC;expenditure (C+I+G) more than, less than, or equal to total output in 2010??.;Your Answer: (more than/ less than/ equal)?;?..;B. How much was the U.S. financial account;balance (IF, in billions of U.S. dollars)??.;Your Answer: $___________ billion (keep two;digits after the decimal point)?.;C. How much was the total domestic saving in the;United States (ST, in billions of U.S. dollars)?.;?Your Answer: $___________ billion (keep two;digits after the decimal point)?..;D. Suppose that the government tax revenue was;$2,000 billion for 2010, what was the U.S. private sector?s saving (SP);in 2010??.;Your Answer: $_________ billion (keep two digits;after the decimal point)?;Under gold standard;before World War I, the price of one ounce of gold was $20.67 and ?4.2474.;Which of the following was an equilibrium exchange rate between the two;currencies according to the gold standard?;Answer;a.;$4.8665/?;b.;$0.2055/?;c.;?4.8665/$


Paper#57881 | Written in 18-Jul-2015

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