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Define the unemployment rate and the inflation rate

Assignment Help Macroeconomics
Reference no: EM132763861

BUS 301 Macroeconomics - Emirates College of Technology

LO 1:Definethe unemployment rate and the inflation rate and explain how to measure them

LO 2: Explain the criteria and evolution of money and its role in the economy

LO 3: Interpret the theories of business cycle and illustrate the differences between them

LO 4: Explain how international trade is financed to understand the mechanism of international borrowing and lending.

Question 1. Zandaland is a country with a population of 110 million. Out of this population, the number of retired people is 14 million, the number of people below working age (under 16 years)is 20 million, and the number of people under different types of institutional care is 1 million. In this country, employment amount to 55 million people and unemployment amount to 3 million people. Calculate the following and show your work:

A. Working-age population

Question 2. How each of the real interest rate ad the nominal interest rate is determined and explain the relationship between these two rates.

Real interest rate

Nominal interest rate

The relationship between nominal interest rate and real interest rate:(2 marks)

Question 3. Answer the two following questions:

A. Explain the four functions of money.

B. The central bank in a country released the following statistics. Total deposits in banks amounted to $ 500 million, notes and coins outside banks reached $ 100 million and reserves of banks held at the central bank amounted to $50 million. Use these figures to calculate the following:
1. Calculate the quantity of money (the money supply)

2. Calculatethe monetary base

3. Calculate currency drain ratio

4. Calculate the reserve ratio

5. Calculate the money multiplier

Question 4: Define rational expectations and explain the two rational expectation theories of the business cycle.

Definition of rational expectation:

Rational expectations theories.

Question 5. Explain the three accounts of the balance of payment.

Question 6. In 2020, the United States dollar exchange rate fell by 7.2% against a basket of major currencies. Explain the main causes behind such a fall.

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The paper is about rephrasing and rewording the related information about economics.The task assigned was to reword some of the economics lines and to understand the relevancy of the context to it. This paper talks about the discussion related to the hacking and the identified software required in the project files.

Reference no: EM132763861

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len2763861

1/14/2021 11:16:06 PM

Need to solve each question separately, each question start by writing the equation first then steps to get final result

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