美国经济代考 Midterm Exam代写

Midterm Exam

March 22, 2021

Name:

美国经济代考 If you answer in hand-writing, scan your answers with your cell phone, convert it into pdf and upload it on classes.

Q1: 12

Q2: 14

Q3: 10

Q4: 4

Q5: 6

Q6: 4

Instructions: 美国经济代考

This is an open book exam. You can use your notes.
You can provide the answers in basically any form, as long as I can read them. For example, you can

-print the exam (if possible) and write in the empty space on the exam sheet

-write by hand on your ownpaper

-type the answer on your computer and upload the pdf or Word file on classes

If you answer in hand-writing, scan your answers with your cell phone, convert it into pdf and upload it on classes.
Answers should be short and precise!
Hand in the exam on classes before 10:20am.

Good luck!

Michael

Question 1 Measuring GDP and inflflation

You are given the following information on prices and quantities for 2 products (A and B) in the years 2018 – 2020:

Assume that both goods A and B are produced and consumed domestically.

Part 1.1 Calculate nominal GDP for 2018, 2019 and 2020.

Part 1.2 Using 2018 as the base year, calculate real GDP for 2018, 2019 and 2020, as well as the GDP deflator.

Part 1.3 Calculate the CPI and CPI inflation in 2019 and 2020, using 2018 as the base year.

Consider the Solow model with constant population growth rate n (but without productivity growth).

Question 2 Solow model 美国经济代考

Part 2.1 Use the graphical representation of the model to illustrate the dynamics of the economy from a starting point with high capital to the steady state. Explain why the capital stock moves up or down.

Make sure you exactly label the horizontal axis and all of the curves.

Part 2.2 What is the growth rate of total output in the steady state?

Part 2.3 What is the growth rate of wages in the steady state?

Part 2.4 Consider an increase in the population growth n. What is the e↵ect on output per capita in the long-run? What is the e↵ect on total output in the long- run? What is the e↵ect on wages in the long-run?

Consider the model of a competitive, frictionless labor market, with production function

Y = K^1/2L^1/2 (1)

where the current capital stock equals K = 4.

Question 3 Labor market 美国经济代考

Part 3.1 Derive labor demand as a function of the real wage.

Part 3.2 Compute the equilibrium wage if labor supply is fix and equal to L¯L = 1.

Part 3.3 Assume the government imposes a minimum wage that is 10 percent higher than the equilibrium wage. Firms determine how much to hire. How big is ”unem- ployment” L¯ — L?

Part 3.4 Now keep the minimum wage constant, and assume that the capital stock K increases. Explain qualitatively how this e↵ects ”unemployment”.

Big Macs. In the UAE, one Big Mac costs 15 AED. In India, it costs 240 INR. For you, purchasing power parity holds between UAE and India. What is the nominal exchange rate INR/AED? What is the real exchange rate?

Question 5 Money supply 美国经济代考

Assume that the reserve ratio is always 10 percent, and that households hold no currency.

If the central bank buys government bonds worth $1000 from a commercial bank in an open market operation, what is the e↵ect (please provide exact numbers)

on the monetary Base B
on deposits D
on reserves R
on money supply M?

Question 6 Assume the quantity theory of money holds:

M ·V = P ·Y (2)

where velocity V is constant. Assume that Y grows at the rate of technical progress, which is 2 percent per year.

If money supply grows at 5 percent per year, what is the annual inflation rate?

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