Question

In: Economics

Part  I                                       &nbs

Part  I                                          Answer all questions

Q1) In addition to capital accumulation and technological progress, what are some of the other possible explanations for recent output growth in China?

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Q2) Will the CPI and GDP deflator always move together? Explain.

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Q3) First, explain why the money demand curve is downward sloping. Second, explain what factor(s) will cause shifts in the money demand curve.

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Q4) Based on your understanding of the IS-LM model, graphically illustrate and explain what effect a reduction in consumer confidence will have on output, the interest rate, and investment.

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Solutions

Expert Solution

Q1: The major factors for recent output growth are as follows:

1. Labour supply: There is a plentiful supply of workers in China with a steady stream of rural-urban migrants in search of work.

2. High savings rate

3. low wages and high employmemnt

4. Increased Female participation in the workforce

5. Political system: The non-democratic and authoritarian political regime in China has meant that it has been possible to embrace western-style free market economics while maintaining control over the political system.

6. Export-led growth

7. Special Economic Zones and FDI : china is highest recipient of foriegn direct investment.

8. Promotion of private enterprise
9. Investment in infrastructure

10. Economic diversification : China has recently started to diversify into Research and Development, specialist manufacturing and hi-tech industry.

Q2: Although both the GDP deflator and the CPI are measures of the price level, the two do not necessarily move together all the time. In 2005, the annual GDP deflator inflation was 2.7% while the CPI inflation was 3.4%. The rise in oil price increased the price of goods consumed relative to the price of goods produced in the US.

Q3: Dear student/learner, According to our protocol I am obliged to solve only one question. Out of courtesy i have solved three for you. you can post the last question separately. It would be our pleasure to help you solve the question.

happy learning


Related Solutions

Problem I                                         &nbs
Problem I                                                                    Katie Inc.                                 Balance Sheet                               At December 31 2017 2016 Current assets: Cash $ 17,000 $ 10,000 Accounts receivables     50,000    45,000 Inventory     64,000    70,000 Prepaid expenses     12,000 10,000 Total Current Assets $143,000 $135,000 Non-current Assets: Plant assets 580,000 560,000 Accumulated depreciation (130,000) (100,000) Patent    50,000    60,000 Total Non-current Assets $500,000 $520,000 Total Assets $643,000 $655,000 Liabilities: Current Liabilities Accounts payable $ 90,000 $ 93,000 Salaries payable      8,000     ...
Essay The    ‘valentine    vector’    says,    “I    was    only    a    scalar    until    you &nbs
Essay The    ‘valentine    vector’    says,    “I    was    only    a    scalar    until    you    came    along    and    gave    me    direction.” What    is    your    scientific    insight    in    this    statement?
Part I and Part II are independent. Please answer both parts. Part I: During a year...
Part I and Part II are independent. Please answer both parts. Part I: During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense, raw materials, rent and utilities. The firm’s owner has provided $750,000 of her own money instead of investing the money and earning a 10 percent annual rate of return. 1A. The accounting costs of the firm are 1B. The opportunity cost is 1C. Total economic costs are 1D. Accounting profits...
      TASK                                    &nbs
      TASK                                                            1. Choose any Omani organization and write briefly about its corporate social responsibility activities or strategies.(400-500 words). If you are part of the decision making body of this organization, what type of new activity (towards social responsibility) you would like to add?            (5+5=10 Marks) 2. Compare between Omnipotent view of management and symbolic view of management.                                                                        3. Describe workplace spirituality. Identify its characteristics of a spiritual organization and its benefits.                                                                                                                          (1+2+2=5 Marks) 4. Explain workers compensation. How to...
Year                          A               &nbs
Year                          A                            B                                 0                              -8,000                    -8,000                                  1                              4,500                     1,900                                 2                              4,200                     3,000                                3                              1,800                     4,000                                 4                              1,600                     5,000 Which project would you select if you used the payback, NPV and IRR methods using a 15% discount rate and why?
Year                          A               &nbs
Year                          A                          B                 0                              -75,000                  -75,000                 1                              40,000                 10,000                 2                              27,000                 15,200                 3                              20,000                 67,967 By how much should the cost of capital (discount rate) for the losing project (based on NPV) be increased or decreased in order for it to be selected over the winning project (based on NPV)?
Name:                                         &nbs
Name:                                                                                                          . A manager of a local clothing retail store wants to make a sales and promotion plan for next month. In order to evaluate the effectiveness of the plan, the manager identifies all the costs and other relevant information and conducts Break-even analysis. Here are the identified costs and other related information. Monthly rent fees: $2,500 Wages for the hired employees (Monthly): $6,000 Utility fees (Monthly): $700 Other operation costs (Monthly): $1,000 Purchase price per unit: $78   (The manager...
Question2:                                         &nbs
Question2:                                                                                          A manager use his company profit time series for one goods to calculate forecast for upcoming years. He use F1 = Moving Average Method for 3 years F2 = Weight Moving Average for 3 years F3 = Exponential Smoothing Method with α = 0.2 F4 = Exponential Smoothing Method with α = 0.7 His calculation represent in the following table. Gide the manager to chose the better method by calculate MAD and MES for each method t y...
   DATE                                       &nbs
   DATE                                            Ending Inventory(end of year prices)               Price Index December 31, 2013                                          $ 69,400                                               100 December 31, 2014                                          102,080                                                 116 December 31, 2015                                          110,208                                                 128 December 31, 2016                                          123,816                                                 132 December 31, 2017                                          116,058                                                 138 Use the dollar-value LIFO method to compute the ending inventory for Shamrock Company for 2013 through 2017.                                                 Ending Inventory 2013 - 69400 2014 - ? 2015 - ? 2016 - ? 2017- ?
Part I: Standing Wave - Superposition with Reflected Wave Part I: Standing Wave - Superposition with...
Part I: Standing Wave - Superposition with Reflected Wave Part I: Standing Wave - Superposition with Reflected Wave 1. Where would you expect the nodes to be? ---Select---About half the amplitude of the incident or reflected wave.Where the wave amplitude is highest or lowest.Where the incident wave crosses the centerline.About double the amplitude of the incident or reflected wave.is in phase with the incident wave.is out of phase with the incident wave.About double the amplitude of the incident or reflected...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT