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BMHM2129 Introduction to Macroeconomics Semester One, 2022-2023 Individual Assignment (Due date: Week 12,26 Nov2022 @18:00) (1) The following table gives some figures from a forecast

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BMHM2129 Introduction to Macroeconomics Semester One, 2022-2023 Individual Assignment (Due date: Week 12,26 Nov2022 @18:00) (1) The following table gives some figures from a forecast of real GDP and population done in 2009. (i) According to the forecast, approximately bow much price inflation will there be between 2010 and 2011? (2 marks) (ii) What is the per capita GDP projected to be in 2010 and 2011 ? (2 marks) (iii) Compute the forecast nte of change in real GDP and per capita real GDP between 2010 and 2011. (2 marks) (iv) If you buy a new car, the entire purchase is counted as consumption in the year in which you make the trancation. Explain briefly why this is in one sense an "error" in national income accounting. How is the purchase of a car different from the purchase of a pizza? How could you correct this error? (4 marks) (2) With the help of aggregate supply (AS) and aggregate demand (AD) curves, describe the effects of the following events on the price level and on equilibrium GDP in the short run and the long nem, assuming that input prices fully adjust to output prices after some lag. (2) An increase in the money supply with GDP being below its potential. ( 5 marks) (ii) Advancement in information techology in the 1990 . (5 marks) BMHM2129 Introduction to Macroeconomics Semester One, 2022-2023 Individual Assignment (Due date: Week 12,26 Nov2022 @18:00) (1) The following table gives some figures from a forecast of real GDP and population done in 2009. (i) According to the forecast, approximately bow much price inflation will there be between 2010 and 2011? (2 marks) (ii) What is the per capita GDP projected to be in 2010 and 2011 ? (2 marks) (iii) Compute the forecast nte of change in real GDP and per capita real GDP between 2010 and 2011. (2 marks) (iv) If you buy a new car, the entire purchase is counted as consumption in the year in which you make the trancation. Explain briefly why this is in one sense an "error" in national income accounting. How is the purchase of a car different from the purchase of a pizza? How could you correct this error? (4 marks) (2) With the help of aggregate supply (AS) and aggregate demand (AD) curves, describe the effects of the following events on the price level and on equilibrium GDP in the short run and the long nem, assuming that input prices fully adjust to output prices after some lag. (2) An increase in the money supply with GDP being below its potential. ( 5 marks) (ii) Advancement in information techology in the 1990

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