Sample Macroeconomics Questions for Class Test II (Prepare all questions for 20 marks each) 1. What are factor prices? How are factor prices determined according to Classical theory of income and output? 2. Explain the effects of the followings on economy according to Classical Theory of Income and Output: a) The new government in Nepal has taken initiatives with the assumption that there is no alternative to reconstruct the once demolished infrastructures to rebuild Nepal into a more prosperous
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THE EFFECTS OF EXCHANGE RATE IN INFLATION OUTPUT AND THE CURRENT ACCOUNT ABSTRACT The empirical studies on the effects of changes in exchange rates on inflation and real activity can be broadly divided into four categories: Single-equation econometric methods‚ Vector autoregressive (VAR) models‚ Structural macro econometric models and DSGE models - Dynamic stochastic general equilibrium. Methodologies: First‚ most participants use single-equation econometric methods that estimate
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Comparative Analysis of Inflation in Nepal and India Nepal Rastra Bank Research Department Baluwatar‚ Kathmandu 30 November 2011 Nepal Rastra Bank Research Department 30 November 2011 Comparative Analysis of Inflation in Nepal and India Background: Year-on-Year monthly variation of inflation‚ both in Nepal and India‚ seemed to be higher than expected at present situation. Inflation in Nepal is largely affected by rising food price in the country‚ which is a global phenomenon also
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statement true or false? Explain your answer. Problem # 2 Suppose the market for running shoes is in equilibrium. Then the supply of running shoes decreases. What happens to the price and quantity of running shoes? What factors might account for the decrease in supply? Problem # 3 The table above gives the demand and supply schedules for CDs. a. According to the table‚ what is the equilibrium price? b. Suppose the government imposes a price floor of $16 for a CD. What is the result? c.
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Affect of unemployment in economy Unemployment (or joblessness) occurs when people are without work and actively seeking work. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force. During periods of recession‚ an economy usually experiences a relatively high unemployment rate.[2] According to International Labour Organization report‚ more than
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Issue: Inflation Research question: How does inflation affect the average American citizen? In 1960‚ a McDonald’s hamburger was only 20 cents but today the same hamburger is $1.29‚ this is due to inflation. According to Oxford Dictionary inflation is defined as “A general increase in prices and fall in the purchasing value of money.” In other words inflation is the increase of the cost of goods and services overtime. Different goods and services experience rising costs at different rates. when
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Is inflation always bad for an economy? Inflation is a general increase in prices and fall in the purchasing value of money measured as percentage; ways of measuring it include the retail price index and the consumer price index. One cost of inflation is that firms may have to spend money‚ time and effort moving money around financial institutions (banks etc.) so that they can ensure it doesn’t lose its value‚ it incurs shoe leather costs as a result of this. However these costs can be offset by
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Major Cause of Inequality.“The origin of inflation is often found in the panicky nervousness of unstable governments in politically unstable communities. Given political stability there is no reason why India should not be able to carry out her future plans without generating serious inflationary pressure on the price level.” Keeping 1960-61 as the base year‚ the Fourth five year plan save the price index at an all time high of 331 in September 1974 (with 1961-62-100). This was due to a combination
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ASSIGNMEN The effect of inflation on the economy of bangladesh COURSE NAME Course: BUS Code- 201 PROGRAM BBA SUBMITTED TO Ashik Mahmud Department of Scholl of Business University of Liberal Arts Bangladesh SUBMITTED BY Rahatul Islam ID: 091011146 Sec: 01 SUBMISSION DATE 01/03/2013 Department of Business Administration University of Liberal Arts Bangladesh What Is Inflation? Is the unexpected
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Tables of Contents 1.0 Introduction 2 1.1 Inflation 2 1.1.1 What Inflation is? 2 1.2 two types of inflation: 2 1.2.1Creeping inflation 2 1.2.2.hyperinflation 2 1.3 Causes of inflation 2 1.4 Measure of inflation. 3 2.0 India ’s economy ‚ history of inflation and inflation rate. 3 2.1 Causes of inflation in India 4 2.1.1 Shortage of food 4 2.1.2 Population rise. 4 2.1.3Weak Indian rupee. 4 2.2 Impact of inflation in India 5 2.2.1 Low standard of living 5 2.2.2 high
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