Macroeconomic Data for a Nation in 2012 Dissertation

Query 1 – 10 markings

The stand lists several macroeconomic info for a country in 2012. Item| Billions of dollars

Wages paid out to labour| 850

Intake expenditure| 1, 100

Earnings, interest and rents| 340

Investment| 168

Government expenditure| 310

Net exports| −54

(a) Estimate the country's GDP in 2012. (1 mark) (b) Make clear the strategy (expenditure or income) that you used to calculate GDP. (1 mark)

An economy produces only apples and a melon. The base season is 2011, and the stand gives the volumes produced as well as the prices. Quantities| 2011| 2012

Apples| 70| 95

Oranges| 85| 128

| |

Prices| 2011| 2012

Apples| $0. 75| $1. 10

Oranges| $0. 50| $1. 00

(c) Determine nominal GROSS DOMESTIC PRODUCT in 2011 and 2012. (1 mark)

(d) Calculate actual GDP in 2011 and 2012 expressed in base-year prices. (2 mark)

The furniture describe an economy's labour market as well as production function in 2010. Actual wage rate

(dollars per hour)| Work hours supplied| Labour several hours demanded| | Labour (hours)| Real GROSS DOMESTIC PRODUCT

(2005 dollars)

80| 45| 5| | 5| 425

70| 40| 10| | 10| 800

60| 35| 15| | 15| one particular, 125

50| 30| 20| | 20| 1, 4 hundred

40| 25| 25| | 25| one particular, 625

30| 20| 30| | 30| 1, 800

20| 15| 35| | 35| one particular, 925

(e) Exactly what are the equilibrium real salary rate, the quantity of labour employed in 2010, work productivity and potential GDP in 2010? (1 mark) (f) In 2011, the citizenry increases and labour hours supplied enhance by 10 at each actual wage price. What are the equilibrium genuine wage level, labour output and potential GDP in 2011? (2 mark) (g) This year, the population raises and time hours delivered increase by simply 10 at each real income rate. Does the standard of living difficult increase in 2011? Explain for what reason or obtain. (2 mark)

Answer

(a) GDP = C + I + G + (X –M) = 1, 100 + 170 & 310 + (-54) sama dengan 1526 In the above fomula, we have:

C is the intake expenditure

My spouse and i is investment

G can be government expenditure

(X-M) may be the net export products

(b) The procedure used to determine GDP in question a is a expenditure strategy which procedures GDP while the quantity of Ingestion expenditure, Investment, Government expenditure and Net exports. (c) Nominal GROSS DOMESTIC PRODUCT in 2011 sama dengan 70 × 0. seventy five + eighty five × 0. 5 sama dengan 95

Nominal GDP this year = ninety five × 1 ) 10 + 110 × 1 . 00 = 204. 5

Nominal GDP in 2012 is installment payments on your 26 occasions its value in 2011

(d) For the reason that base yr is 2011, the real GDP equals to the nominal GDP equals 96 To compute the real GDP in 2012, we should use the amount of 2012 but as its worth in 2011 since 2011 is definitely the base 12 months. Therefore: True GDP this year = ninety five × 0. 75 & 110 × 0. a few = 126. 25

(e) Based on the table has been produced in the issue, we can have this figure: Income rate

(Dollars per hour)

Labour Several hours

LS

LD

25

45

0

Labour market balance

Wage level

(Dollars per hour)

Labour Hours

LS

LD

25

40

0

Labour market equilibrium

s i9000

As we are able to see in the physique above, the equilibrium actual wage price is at forty where the quantity of labour required equals to the number of labour delivered equals to 25.

Labour production = Actual GDP ÷ Labour several hours = (425 + 800 + one particular, 125 + 1, 400 + 1, 625 + 1, 800 + 1, 925) ÷ (5 & 10 + 15 & 20 + 25 + 30 & 35) = 9100 ÷ 140 sama dengan 65 (dollars/hour)

Potential GDP is you, 625 if the economy is at full of career

(f) The equilibrium actual wage charge is $30 per hour.

Base available has been given, when the employment of 30 hours, real GDP is $1, 800. Therefore the Labor productivity equals $1, 800 devided by 30 hours, or perhaps 60 us dollars per hour.

(g) The normal of living is not increased although decreased because real GROSS DOMESTIC PRODUCT per person decreases. Therefore potential GDP boosts but genuine GDP per head decreases.

Query 2 – 10 represents

ABS reported the following data for August 2011:...



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