Apr 29, 2013 - 8) We now suppose that Ms=60000. Find the new equilibrium output and interest rate, the new level of employment and the unemployment rate ...
Université d'Orléans - Année universitaire 2012-2013 Faculté de Droit, Économie et Gestion Licence Economie Gestion (Mention Européenne) – semestre 2 Macroeconomics 29th April 2013
Exam #2
Aucun document autorisé Calculatrice autorisée
Exercice 1 (12 points) After your studies in economics at the University of Orléans, you become adviser for the minister of economics. You role is to analyze the evolutions of the French economy, which can be characterized by the following equations: An economy has the following characteristics: C = 12000 + 0.6 Yd I = 10000 – 40000i G = 22000 T = 20000 Ms=50000 Md=0.6 Y -200000i + 15000 L=400Y with L the level of employment. The active population is 40 000 000.
1) Comment each equation. (1 point) 2) We know that the public deficit is equal to (G-T). What is the value of the public deficit for 3) 4) 5) 6)
France? (0.5 points). Build the IS and LM relation (2 points) Solve for equilibrium output and interest rate (1 point). What is the level of public deficit in percentage of GDP (0.5 points) What is the level of employment and the unemployment rate? (1 point)
7) The European Central Bank is ready to help European governments to decrease unemployment. Without making any calculation, explain which type of policy can be chosen by the central bank in order to reach this goal? Show graphically the effect of such policy on the IS-LM graph. (1.5 points).
8) We now suppose that Ms=60000. Find the new equilibrium output and interest rate, the new level of employment and the unemployment rate. Calculate also the new public deficit in percentage of GDP. Comment. (1.5 points).
9) Let's come back to the case where Ms=50000. The government wants to reduce public deficit. What kind of policies can be chosen? Show the effect of such policies using the IS-LM graph. (1.5 points)
1
10) We now suppose that G=21500. Find the new equilibrium output and interest rate. Calculate the new level of employment, the unemployment rate and the public deficit (in % of GDP). Comment in the light of what you obtained in question 8 (1.5 points).
Exercice 2: Effectiveness of fiscal policy (8 points) 1. We keep the same parameters than in the previous exercise. The only change is the function of money demand. C = 12000 + 0.6 Yd I = 10000 – 40000i G = 22000 T = 20000 Ms=50000 Md=0.6 Y + 15000
a) solve for equilibrium output and interest rate. (1 point) b) The government decides to reduce public spending by 500. G is now equal to 21500. Find the new equilibrium. (1 point) c) Show graphically the two equilibrium and comment. (1 point) 2. The money demand is now Md=0.6 Y - 300000i + 15000. a) solve for equilibrium output and interest rate. (1 point) b) The government decides to reduce public spending by 500. G is now equal to 21500. Find the new equilibrium. (1 point) c) Show graphically the two equilibrium and comment. (1 point) 3. Condition of effectiveness of fiscal policy (2 points) a) Calculate the evolution of GDP induced by the fall of public spending (from G=22000 to G=21500) : - in the previous exercice (question 10) - in question 1 - in question 2 b) In the light of these results, explain how the money demand affects the effectiveness of fiscal policy (1.5 points).
Apr 17, 2012 - Exercice 2: Effectiveness of fiscal policy (8 points). 1. We keep the same parameters than in the previous exercise. The only change is the ...
Page 1 ... 1) Calculate the added-value of each firm. 2) Calculate the GDP of the ... 1) Rank these projects from the most profitable to the lowest one. Explain.
Mar 19, 2013 - A last firm is specialized in the production of machines. ... 2. Calculate the net present value of project B. We suppose the firm can sell the.
Apr 15, 2014 - reduction of autonomous investments. The new investment function is now the following: I = 60-2000i. 7) Before making any calculation, explain ...
The steel producer has also invested 100000⬠in machines. The firms employs 5 ... The economy can be summarized by the following table. Year. 2014. 2014.
24 mai 2018 - Time allowed / Tps accordé : 86 sec. Time limit / Tps limite : 172 sec. Obstacles ... Jumping International de Reims CSI *** & * mai 2018. In /. Out.
Are you looking for mort heureuse n1 PDF?. If you are areader who likes to download mort heureuse n1 Pdf to any kind of device,whether its your laptop, Kindle ...
Mar 1, 2008 - Here we go again with another new theme on âsea animalsâ, for the children to explore. This is a very ... We are still be traveling to China, an exotic, unique and exciting country. ... PDF Created with deskPDF PDF Writer - Trial ..
Conçue pour le nettoyage de surfaces de cuisine notamment les planchers, les comptoirs, les surfaces de travail et les murs. Suma®. JP 2'N1® D2.3. Détergent ...
Cette formule est encore aujourd'hui trs apprcie du public qui rpond ... suivies de la sonate N 1 en la mineur du ... Martin Amis - Wikipedia, the free encyclopedia.
Apr 6, 2008 - mathematics exercises create awareness of mathematical ... /PTM. PDF Created with deskPDF PDF Writer - Trial :: http://www.docudesk.com ...
Un mélange hautement concentré d'agents ... que vos employés lisent et comprennent l'étiquette du produit et la fiche de sécurité du produit avant de l'utiliser.
Mar 25, 2008 - China, will be the subject children will cover and ... from China. .... Picture 2. â¢. Picture 3. Pre-Writing skills Tracing. c i f m. Story Telling/Puppetry.