What component of demand fluctuates the most

Assignment Help Econometrics

Reference no: EM131085766

Chapter 7 - The Macroeconomic Perspective

1. Answer the following questions about components of demand in GDP:

a. List the components of demand from the most important to the least important.

b. What component of demand fluctuates the most?

c. Why does the government share of demand appear (perhaps) surprisingly small?

2. The exchange rate for Estonia is 14 krooni per dollar. The exchange rate for Uruguay is 10 pesos per U.S. dollar. First, recalculate both of these exchangers in terms of how many U.S. dollars per unit of foreign currency. Then calculate the exchange rate between Estonian krooni and Uruguayan pesos. (Hint: Because you know how much each is worth in U.S. dollars, it becomes possible to compare them to each other.)

3. India has a GDP of 23,000 billion Indian rupees, and a population of 1.1 billion. The exchange rate is 50 rupees per U.S. dollar. Calculate the GDP per capita of India as measured in U.S. dollars.

4. Is it possible for GDP to rise at the same time that per capita GDP is falling? Explain. Is it possible for per capita GDP to rise at the same time that GDP is falling? Explain.

5. Which of the following are included in GDP, and which are not?

a. The cost of hospital stays

b. The rise in life expectancy over time

c. Child care provided by a licensed day care center

d. Child care provided by a grandmother

e. The sale of a used car

f. The sale of a new car

g. The greater variety of cheese available in supermarkets

h. The iron that goes into the steel that goes into a refrigerator bought by a consumer

6. Explain briefly whether each of the following would cause GDP to overstate or understate the degree of change in the broad standard of living:

a. The environment becomes dirtier.

b. The crime rate declines.

c. A greater variety of goods become available to consumers.

d. Infant mortality declines.

Reference no: EM131085766

Questions Cloud

Who influenced them and their work : An introduction to sociology and to your chosen sociologist. Include some biographical information: who were they, where did they come from, why did they study social sciences...etc. Who influenced them and their work?

What major events occurred and how did the countries react : Compare and contrast the political changes that occurred in South Africa, China and Austria in the 1980s and 1990s. What major events occurred, and how did the countries react?

How do north and thomas define efficient institutions : How do North and Thomas define efficient institutions

Implementation issues for it security policy development : 1. Examine the implementation issues for IT security policy development. Determine which of these issues are the most challenging for organizations to overcome and explain why.

What component of demand fluctuates the most : What component of demand fluctuates the most?

How dynamic can pay for the newly proposed epic system : A strategy for how Dynamic can pay for the newly proposed Epic system. Explain how the organization will save in operational expense in order to handle the extra 100K per year needed to maintain this solution

Question regarding the educational qualifications : Ms. Ritu and Mr. Mohit are Data Entry Operators in a campany having same educational qualifications. Ritu is getting Rs. 5,000 per month and Mohit Rs. 6,000 per month as salary for the same working hours.

Chemical structure of chemical chosen : Include the chemical structure of each chemical chosen. Include at least two important chemical properties that affect fate and transport for each chemical, such as octanol-water partition coefficient, organic carbon-water partition coefficient, an..

Personal objectives of management : What is meant by' Personal Objectives' of management? Enumerate personal objectives of management and explain five functions of top-management.

User Account

All Pages