Compute the growth rate of real gdp

Reference no: EM1373299

[A] Suppose last year's real GDP was $10,000 billion, this year's nominal GDP is $13,800 billion, and GDP-deflator for this year is 110. Determine the growth rate of real GDP?

[B] "Under a fixed exchange rate system, expansionary monetary policy depletes foreign reserves at the central bank." Comment on this statement with the help of an IS-LM diagram.

[C] Using demand and supply analysis to assist you, find the effects on the exchange rate between the British pound and the Japanese yen from:

i. an increase in Japanese interest rates
ii. an increase in the price of British goods
iii. an increase in British interest rates

Reference no: EM1373299

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