The static equation for a country’s GDP is
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- Which of the following is considered to a leading indicator of a countrys economy? a. money supply b. stock prices c. duration of unemployment d. interest rate spreadWhy are they important for policymakers and investors, also in what situations and why do they use them? Gross Domestic Product (GDP): Balance of Payments (BoP): Inflation: Real return & Nominal Return:Give typing answer with explanation and conclusion Briefly define GDP and GDP-P. Explain how would you use PPP to understand financials in a country.
- Which one of the following is NOT a correct definition of Gross Domestic Product (GDP)? (a) GDP is the value of the final goods and services produced in the economy during a given period. (b) GDP is the sum of value-added in the economy during a given period. (c) GDP is the sum of labor incomes in the economy during a given period. (d) All of the above are correct definitions of GDP.What information would one use to determine the type of economic system that a country has? (Multiple choice) 1. The information needed would be the rate of inflation and the gross domestic product figures. 2. The information needed would be the breakdown on who owns the business in the country and how much control the government has upon business regulations, taxes, etc. 3. The information needed would be the gross domestic products figures and consumer price index figures.A country’s current account position moves from a surplus to a deficit. What will be the result? Pick a,b,c, or d A) an increase in real GDP B) a decrease in unemployment C) an increase in the exchange rate D) a decrease in the money supply
- Through utilizing fiscal policy, i.e. varying ________ and/or ___________, governments achieve goals for output and employment growth as well as price stability.a. interest rates, financial liberalizationb. inflation, tax elasticityc. tax rates, government spendingd. interest rates, tax ratesUse the Mundell-Fleming model with perfect capital mobility, for each economy, analyze why the effectiveness of monetary, fiscal, and trade policies depend on the exchange rate regime in place in a country.In Question 3, assume that GDP=$12, C=$3, G=$2, M–X=$1, R=6%, INF=12%. Calculate the capital investment spending (I). A. I=$5. B. I=$8. C. I=-$3. D. I=$4.
- Which of the following best describes the situation when the value of a country’s exports is more than that of its imports? a. The country is experiencing a financial account surplus. b. The country is experiencing a current account surplus. c. The country is experiencing a financial account deficit. d. The country is experiencing a current account deficit.Identify the different types of yield curves and explain what they indicate for the U.S economy? What is the current shape of the yield curve and why is it shaped that way?The focus of the short-run macro model is on the role of a. spending in explaining economic fluctuations b. output in explaining economic fluctuations c. labor in explaining economic fluctuations d. financial markets in explaining economic fluctuations