INTERMEDIATE MACROECONOMICS I – GradSchoolPapers.com

Stuck with a difficult assignment? No time to get your paper done? Feeling confused? If you’re looking for reliable and timely help for assignments, you’ve come to the right place. We promise 100% original, plagiarism-free papers custom-written for you. Yes, we write every assignment from scratch and it’s solely custom-made for you.


Order a Similar Paper Order a Different Paper

Answer all questions as briefly and precisely as possible. Each question is worth 25 marks (Total Marks = 100). Answers should be uploaded on Moodle by 4PM on Tuesday 9 August.
All these questions can be answered by consulting appropriate sections of the textbook and lecture notes. It is up to the student to identify and read these sources and no help or hints should be expected in this task.
1. Describe the Base Year method and the Chain Weighted method for calculating Real GDP. What problem(s) arises in using the Base Year method? How does the use of Chain Weighted method help rectify this problem?
2. Compare and contrast the CPI and GDP Deflator as measures of the cost of living. Does the CPI tend to overstate or understate the true cost of living? Explain your answer.
3. Consider the following aggregate production function which depends on labour alone:
Y=A.Lx
whereY is aggregate output, L is the amount of labour employed, A is a productivity of the economy and xis a positive exponent that captures the productivity of labour.
[Numerical values of A, x and L are given in an Excel file attached to the tab “Parameter Values for Question 3 on the Resit CW”. You must use only those values that belong to the same row as the first initial of your surname. For example, if your surname starts with H, you should use A=108, x=1/4 and L=81. If you cannot find your initial, then contact me by sending a message via Moodle.]
i. Using the values of A and x from the Excel file but leaving L as a variable, solve for the equation that expresses the demand for labour in the economy as a function of the real wage of labour (W/P). [12 marks]
ii. Now, assuming that the supply of labour is fixed at the level that corresponds to the value of L in the row corresponding to your surname, solve for the equilibrium value of the real wage in the labour market. [10 marks]
iii. What is the value of Ywhen the labour market is in equilibrium? [3 marks]
[Show all working in answering (i)-(iii)]
4. What are the different components of demand for goods and services in a closed economy and what are the main determinants of each? How does a decrease in taxes affect aggregate demand and through what component does this effect take place?

Writerbay.net

We’ve proficient writers who can handle both short and long papers, be they academic or non-academic papers, on topics ranging from soup to nuts (both literally and as the saying goes, if you know what we mean). We know how much you care about your grades and academic success. That's why we ensure the highest quality for your assignment. We're ready to help you even in the most critical situation. We're the perfect solution for all your writing needs.

Get a 15% discount on your order using the following coupon code SAVE15


Order a Similar Paper Order a Different Paper