Midterm_2023_sol

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Nominal GDP growth is 3 percent. Inflation is 4 percent. What is real GDP growth? 12 percent -7 percent -1 percent 1 percent 7 percent

This is graph shows the relationship between the economic growth rate and inflation rates during the period 2010-2017. Can you make some implications?

Rising inflation is a biggest challenge for every economy. A sustainable economic growth need price stability which makes essential approach for consumption demand. Higher fluctuation in inflation rate is causing insufficient productivity in economy and consumption demand. Effective utilization of expansionary and contractionary economic policy make may make balance between economic growth, price stability, aggregate demand & supply and employment level. The main components of the consumer price index in Oman are Food, Beverages, Tobacco Transport, Communication, Rent, Electricity, Water and Fuel. Consumer prices in Oman rose by 1.59 percent year-on-year in April of 2021; it was the first monthly increase in consumer prices since March of 2020. The consumer prices in Oman decreased by 1.57 percent year-on-year in January of 2021, marking the eleventh consecutive month of declining in consumer price index which leads to economic slowdown. Major consumption expenditure in 2017 was…

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Need help with multiple choice questions asap thx

a. Examine the fundamental causes of a nation’s business cycle fluctuations. Also, examine the relationship between total spending by government and consumers in a nation and the location of the countries’ GDP on the business cycle.   b. 1. Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account.You anticipate that the inflation rate will be 4% during the year. However, the actual inflation rate for the year is 6%.Calculate the impact of inflation on the bank term deposit you have and examine the effects of inflation in your city of residence with attention to food and accommodation expenses. 2. The Australian Bureau of Statistics (ABS) reported in May 2017 that the civilian population in Australia over 15 years of age was 20.8 million.Of this population of 20.8 million Australians, 13.5 million were employed and 0.7 million were unemployed.Calculate Australia’s labor force and the number of people in the civilian population who were not in…

1. Describe GDP & Unemployment Country Z 1 YEAR AGO Country X Country Y 1 YEAR AGO 5.1% NOW -3.2% 1 YEAR AGO 0.3% INDICATOR NOW NOW GDP growth rate 10.9% 3.7% 3.5% Unemployment rate 1.5% 3% 10.1% 7.2% 4.2% 4.5% Inflation rate 6% 3.8% -1% 1.5% 2.2% 2% Explain if each country (X,Y,Z) is healthy. If there is a problem, is it inflation or recession? 3. 2. During a expansion phase of the business cycle GDP is (increasing decreasing b) Unemployment is(increasing decreasing).L Inflation is (increasing decreasing) 4. During a contraction phase of the business cycle GDP is (increasing /decreasing)- b) Unemployment is (increasing decreasing) c) Inflation is (increasing/decreasing)

assuming, in a country. the unemployment rate was 15%, And the inflation rate was 17% Ánd the GDP growth rate was 4%. our goal is to make all these 3 factors are equal. which is GDP Growth rate, Inflation rate and unemployment . imagine, that you have a high power in the government, what would you do to make them all equal? 1) would you be able to achieve this goal using only a single policy concept? why or why not? 2) what policy or policy mix would you use to reach that goal? Please explain the policy or the policy mix, explain the policy you would use, and discuss how it would work to achieve the goal.

Business Fluctuations: End of Chapter Problem 10. Consider the following figure. In this relatively unsuccessful economy, the Solow growth rate is 1% per year. Inflation rate (TT) X LRAS SRAS (E[T] - 6%) AD (M+-15%) Solow growth rate (1%) AD (M+V-7%) Real GDP growth rate a. Calculate the value of X in this economy. b. If spending growth were 15% in this economy, what would the inflation rate be in the long run, assuming the Solow growth rate stays fixed? X= The inflation rate is %

Philippine Economics History Which periods of Philippine economic history have seen significant jumps in inflation? What are the various hypotheses for the high inflation rates and what have been the results of such high inflation for the economy and the average Filipino?

Suppose that the average annual growth rate of nominal GDP over a period is 6.8% and the average annual inflation rate over the same period is 3.7%. What is the growth rate of real GDP? Use the exact formula and express your answer in percentage rounded to the nearest first decimal.

Plot these data points, and identify the four phases of the business cycle. Give a theory that may explain the cause of the observed business cycle. What are some of the consequences of a prolonged decline in real GDP? Is the decline in real GDP from $1,000 billion to $500 billion a recession?

Country X Country Y Country Z 1 YEAR AGO 1 YEAR AGO 1 YEAR AGO INDICATOR NOW NOW NOW Unemployment rate 7.5% 5.6% 7.9% 9.3% 5.5% 5.4% GDP growth rate 5.1% 1.9% 0.3% -1.2% 3.5% 3.7% Inflation rate 1.1% 0.2% 2.1% 0.0% 2.4% 2.3% 4. Which country would you want to start a new business in? Why? Country would be the best option to start a new business in because... 5. Describe how the economic indicators affect one another. If GDP increases the effect on unemployment will be an (increase/decrease) because... This change in unemployment will cause inflation to (increase/decrease) because...

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Bureau of Economic Analysis data show that with base year 2005​ = 100, the GDP price index was 109.7 in the second quarter of 2009. In that same​ quarter, the PCEPI was 108.8.   Given the further information that the prices of capital goods​ (investment) and foreign traded goods​ (exports and​ imports) increased at a slower pace than the prices of consumption goods and​ services, how would you explain the difference in the GDP price index and PCEPI measures of​ inflation?   Choose the correct statement.   A. The prices of government goods and services increased at the same pace as the prices of consumption goods.   B. The prices of consumption goods increased at a faster pace than the prices of government goods.   C. The prices of exports increased at the same pace as the prices of imports.   D. The prices of government goods and services increased at a faster pace than the prices of consumption goods.   E. The prices of capital goods and foreign traded…

Suppose that in the country of Eurasia, the velocity of money is constant. Real GDP grows at a rate of 2 percent per year, the money stock grows by 8 percent per year and the nominal interest rate is 9 percent. What is a. The growth rate of nominal GDP? b. The inflation rate? c. The real interest rate?

Question 2 Complete the following table for a given country and show how can you determine if the country faces an inflation in 2018? Nominal GDP2017 Nominal GDP2018 Real GDP2018 P P P 4 2 3 4 3 3 4 3 6 2 GDP

(a) examine the data for Jamaica 2009 - 2018. What relationship (positive, Negative, none) do you OBSERVE between (i) economic growth (ii) economic growth and inflation (iii) unemployment and inflation over the period   Jamaica data (year 2009 - 2018)    2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 unemployment rate 11.36 12.37 12.70 13.93 15.25 13.74 13.51 13.19 11.63 9.10 inflation rate 9.59 12.61 7.56 6.89 9.34 8.27 3.69 2.35 4.38 3.74 Economic rate -4.35 -1.46 1.73 -0.61 0.52 0.69 0.92 1.38 1.00 1.89   (b). rank three economic variables from most important to least important. Provide one relevant reason to justify your selection for EACH of the three position (i.e. a reason why each variable is placed at the position 1, 2 and 3) Rank  Variable justification 1     2     3     (c). "Many believe that the main objective of government economic policy  should be to increase productivity and economic growth" Using the data above and economic knowledge,…

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Part B: Growth rate in 2018 for Real GDP= 3.00% Growth rate in 2018 for Nominal GDP= 6.76% Growth rate in 2018 for Real GDP per capita = 1.99% Growth rate in 2018 for Nominal GDP per capita = 5.72% Suppose the average unemployment rate of Hong Kong from 1999 to 2018 was 4.59%. Which phase of the business cycle best describe Hong Kong’s economic situation in 2018? Briefly explain your answer.

1. The idea that the business cycle is recurrent means that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. Which of the following is NOT likely if an economy is in a recession or headed for one? A) A decrease in consumer confidence. C) Firms/producers are eager to increase their investment. B) An increase in unemployment. D) All of the above. 2. The idea that the business cycle is recurrent means that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. Co-movement is A) the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. B) the tendency of many economic variables to move together in a predictable way over the business cycle. C) the idea that peaks and troughs of the business cycle occur at regular intervals. D) the tendency for declines in economic activity to be followed by further declines, and for growth…

Calculating Real GDP, Price Indices, and Inflation. Using the data from the table below, answer the following questions: Quantities Produced 2011 2012 CDs 105 125 Tennis Rackets 210 220 Real GDP in 2011 using 2011 prices is $24255. (Enter your response as an integer.) Real GDP in 2012 using 2011 prices is $25725. (Enter your response as an integer.) Real GDP grew by 6.06 percent. (Enter your response as a percentage rounded to two decimal places.) The price index for GDP (GDP Deflator) for 2012 using 2011 as the base year is Price per CD $21 $25 Prices Price per Tennis Racket $105 $125 (Enter your response rounded to two decimal places.)

Given the economy current production was, GDP=150M, an economist would be concerned with: Select one: a. Inflation more than unemployment b. Unemployment more than inflation • c. Stagflation d. The possibility of a development housing bubble

Can you answer all question please. This is not a test just a review paper for my class

5. How would inflation affect the value of US dollars in America? How would this affect the macroeconomy?

The graph shows the annual growth rate of the GDP of the United States economy since the first quarter of 1990.   1. Based on the phases of the business cycle, how can you represent the concept on this graph? Explain.2. Without necessarily having the numerical data, what level (high or low) of unemployment could have been registered in some of the periods presented in the graph? Explain your answer indicating why.3. Without necessarily having the numerical data, what level (high or low) of inflation could have been registered in some of the periods presented in the graph? Explain your answer indicating why.4. How do you correlate your answers in the previous questions with the phases of economic cycles and their effects in the short and long term? Explain your answer.