(3) How to interpret relationship between changes of GDP growth rate and unemployment rate? Now go to your notes (slides). Is the relationship you plotted similar as the Okun's Law predicts? Suppose you got a relation as GDP = a + b * UNemp, Are the coefficients of a and b are close to the value of Okun's Law? (4) Now repeat the plot you did in part (2) above. However, this time you use the sample only from 2000 to 2019. Any change to the relationship? How is the value of a and b in this sample?
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- Undertake a model analysis using the IS-LM model. Using the IS-LM model(WITHOUT BALANCE OF PAYMENTS), illustrate and discuss the impact of the Asian Financial Crisis on interest rates and economic activity (and thus the unemployment rate). Remember to explain any changes you have made to the curves and/or any shiftThe consumption function for a closed economy with no government sector is given by theequation:C = £200 million + 0.8 Ywhere C is aggregate consumption and Y is national income.(i) Calculate the value of aggregate savings if the level of national income is £4000 million.(ii) Calculate the equilibrium level of national income if the level of planned investment is£600 million(iii) Calculate the level of aggregate consumption at the equilibrium level of nationalincome if the level of planned investment is £1000 million(iv) Calculate the change in national income if planned investment rose from £600 millionto £800 millionEconomy Consider again the economy from the last question, where inflation is currently 4 percent and the government would rather it be at 1 percent. If this economy decides to spread out the loss of GDP evenly over ten years, each year it will have to give up ___________ percent of its GDP. Carefully follow all numeric instructions. Be sure to enter your answer "as a percent, but without the percentage sign." If 99.99 percent of each year's GDP must be given up, put 99.99 in the blank.
- A restaurant borrows $15,200 from a local bank for 10 months. The local bank charges simple interest at an annual rate of 4.55% for this loan. Assume each month is 112 of a year. Answer each part below.Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas . (a) Find the interest that will be owed after 10 months. $ (b) Assuming the restaurant doesn't make any payments, find the amount owed after 10 months.Please solve The figure below illustrates the demand for money for transaction (L1) and speculative motives (L2) in South Africa: A recession similar to the one experienced between 2009 and 2011 in the global economy will a.Shift curve L1 to the left. b.Shift curve L1 to the left and curve L2 to the right. c.Shift curve L2 to the left and have no impact on curve L1. d.Shift both curves L1 and L2 to the leftStock market Some inves-tors believe that stock prices show weekly patterns, claim-ing for example that Fridays are more likely to be “up” days. From the trading ses-sions since October 1, 1928 we selected a random sampleof 1000 days on which the Dow Jones Industrial Aver-age (DJIA) showed a gain in stock prices. The table shows how many of these fell on each day of the week.Sure enough, more of them are Fridays—and Tuesday looks like a bad day to own stocks. Can this be ex-plained as just randomness, or is there evidence here to help an investor? Day ofthe WeekNumber of“up” DaysMon 192Tues 189Wed 202Thu 199Fri 218
- Metro Bank is a large national bank that prides itself on achieving healthy profits each year. The shareholders are obviously very happy. Metro Bank has several hundred branches but, as with many other major banks, the Board is finding it more and more difficult to justify the existence and operation of smaller branches, particularly in regional areas. For the past few months, the Board of Metro Bank has been discussing ways of generating more profits, and the only thing that everyone can agree upon is to downsize the operations. David Armstrong has been CEO of Metro Bank for 18 months. He was headhunted from a large banking group in the United States, and the main purpose of his appointment is to generate even greater profits for Metro Bank. David’s appointment is for four years. David has been very successful throughout his banking career and is extremely experienced in all facets of banking as a result of his progression through the hierarchy from junior teller to CEO over a period…Sales of a company (in $100,000) for the last 7 years are listed in the following table. Use the data as given in the table, do not include the hundred thousand at the end of the values. Year Q1 Q2 Q3 Q4 1 6 15 10 4 2 10 18 15 7 3 14 26 23 12 4 19 28 25 18 5 22 34 28 21 6 24 36 30 20 7 28 40 35 27 What are the adjusted R^2, and forecasts for Q1, Q2, Q3, and Q4 of Year 8 using this model? 4 decimals. Adjusted R^2: Q1: Q2: Q3: Q4:The following table shows quarterly sales (in thousand units) for a product over 4 years. The overall sales average for the entire 4 years is 166.125 (thousand units). Fill in the missing values assuming there is no trend. Round seasonal indexes to 4 decimal places. Report Averages accurate to at most 2 decimal places. Report Actual sales ('000) accurate to the nearest integer. Year Year Seasonal Year 1 Year 2 Average 4 Index Quarter 205 211 182 1.1768 1 Quarter 152 170 158 156 2 Quarter 182 190 198 193 3 Quarter 128 112 113 0.7178 4
- You are the Economic Consultant for Zuku Farms Ghana Limited. Zuku produces cowpea in a community where producers are able to switch back and forth between cowpea and groundnut depending on market conditions. Consequently, you were tasked by the management of Zuku and you estimated the demand function for cowpea as follows: where is the quantity of cowpea demanded in bags per month, is the average price of cowpea in Ghana Cedis, is the average price of groundnut in Ghana Cedis, and Y is the income of consumers. Assuming is initially GH¢31.00 per bag, Y is GH¢1001.50 Required: Find the resulting demand function for cowpea and determine the number of bags Zuku can sell at GH¢ 45.00 per bag. Management is considering increasing price of cowpea by GH¢10.00 per bag. Advise management on this price change using the concept of price elasticity of demand. Explain why management should be worried about a reduction in the price of groundnutConsider a fictional price index, the College Student Price Index (CSPI), based on a typical college student’s annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table. **THE TABLE IS ATTACHED** Suppose the base year for this price index is 2017. In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Between 2017 and 2018, the CSPI increased by_____%. Between 2018 and 2019, the CSPI increased by______%. Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. A. Energy drinks became increasingly popular on college campuses between…Nestlé has a variety of big data analysts in their headquarters back in Vevey, Switzerland. One enterprising analyst, comparing sales performance of various product lines between different types of countries, notices what appears to be a recurring anomaly. More precisely, he discovers that even though the GDP per capita report for a country might be low to extremely low, grassroots data on actual sales levels and trends in those markets, such as in Mozambique, Guatemala, Zambia, Cambodia, indicate surprisingly robust demand for the sorts of food products that Nestlé makes. In trying to reduce the variance, the analyst runs and reruns the data, but cannot resolve the problem. In frustration, he consults a colleague, asking what she thinks might be going on with his data. She immediately concurs with his outlook—that is, if we were to stick with the officially reported GDP per capita data, Nestlé would wisely would postpone expanding into many of these countries. Alternatively, she…