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Q1. Suppose that the GDP is Rs. 6000, personal disposable income is Rs. 5100 and the government Budget Deficit is Rs. 200, consumption is Rs. 3800 and trade deficit Rs. 1000. Compute saving, investment and government spend.

Q2. Supposing an economy with no government and no foreign trade. Compute GDP for the given output scenario:

There are 3 firms: firm A is a mining company, firm B is a steel producer and firm C is a car manufacturer. In a particular year firm A vends Rs. 100 million worth of iron ore to firm B, firm B vends Rs. 200 million worth of steel to firm C and firm C vends Rs. 500 million worth of cars to general public. If there are no modifications in inventories, no taxes and no other producers in the economy, then determine the GDP?

Q3. Assume that the residents of an economy expend all of their income on cauliflower, broccoli and carrots. In the year 2003 they purchase heads of cauliflowers for Rs. 200; 50 bunch of broccoli for Rs. 75 and 500 carrots for Rs. 50. In the year 2004 they purchase 75 heads of cauliflower for Rs. 225; 80 bunch of broccoli for Rs. 120 and 500 carrots for Rs. 100. If the base year is 2003, then determine the CPI in both the years? Find out the inflation rate in the year 2004?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M912346

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