This is an economic questions.

Macro Topic 5.3 The Foreign Exchange Market Part 1 - Check your Understanding - Assume that the US and China are trading partners. The graph below shows the demand and supply for Chinese yuan and the exchange rate in dollars. 1. Do US citizens or Chinese citizens most likely demand Chinese yuan? Exch S Explain. Rate Sa 2. Do US citizens or Chinese citizens most likely supply Chinese yuan? Explain. $7 3. Explain why the demand curve for SE yuan is downward-sloping 4. Explain why the supply curve is D upward-sloping. Q1 Q2 03 04 05 5. Assume that the exchange rate for yuan was $5 dollars. Would this result in a shortage or a surplus of yuan? Use the graph to explain your answer. 6. Assume that people in China wanted more American goods and services. Show what would happen on the graph and identify if the yuan would appreciate or depreciate. Part 2 - Graph It - Draw correctly labeled graphs of the foreign exchange market for both the U.S. dollar (USD) and the Canadian dollar (CAD) then answer the questions. US Dollars (USD) Canadian Dollars (CAD) 7. Show what will happen on both graphs if Canadians prefer vacationing in the US. Identify what will happen to the value of the USD and the value of the CAD.1. List and explain five different actions the government can take to promote long-run economic growth. - Human Capital -herass pell grantwschodaredept . Physical capiled Grand gooding , Tax Breaks on 2. Describe two ways in which the U.S. goverment tries to encourage advances in technological knowledge. empited . 3, How will each of the following changes shift the PPC and the LRAS (increase, decrease, no change]? a. The economy's physical capital stock decreases due to depreciation. b. Government education programs lead to increases in human capital. c. Research and development spending lead to technological progress. d. A war reduces a country's political instability- 4. Suppose real GDP per capita in Fun Land is $10,000 in 2009. Economists there predict steady increases in real GOP of 7% a year for the foreseeable future. According to the Rule of 70, how many years will it take for Fun Land's real GDP per capita to double? 10 = 10 years to double 5. Why does a small difference in the economic growth rate lead to big differences over time? 6. Why is investment in human capital good for both individuals and fostering economic growth for the economy as a whole? 7. What role might foreign investment play in helping developing nations improve their growth rate and increase income levels? 8. Explain the catch-up effect. 9. Define production function. Write and explain the production function equation. 10. How does the government facilitate economic growth? 11, Explain the paradox of thrift. People feel Uncertain about the market so they start to save and spend less, but al People don't spewed, the Income becomes less, so they save lessConsider the following economy where only pizzas and soda are produced. Production and prices in year 1 and year 2 are given in the following table Quantities Year 1 Year 2 Soda 500 800 Pizza 400 800 Prices per unit Soda $1.00 $0.50 Pizza $2.00 $1.50 1. Compute nominal GDP in each year (if you like, you may consider doing so via the product approach). What is the growth rate of nominal GDP? 2. Compute real GDP and real GDP growth rate using Year 1 as a base year. Repeat this exercise using Year 2 as the base year. Why does your answer depend on which base year you use? 3. Compute real GDP growth rate using the chain-weighted method. How is your answer com- pared to the two growth rates from part 3.2? 4. Using year 1 as the base year, calculate the GDP price deflator in years 1 and 2 and calculate the rate of inflation between years 1 and 2 using this price index. 5. Using year 1 as the base year, calculate the Consumer Price Index in years 1 and 2 and calculate the CPI-based rate of inflation. 6. Explain any differences between your answer to parts 3.4 and 3.5. (Hint: Which index is a Paasche Index and which is a Laspeyres Index? How do these indices differ?)Macroeconomics Homework GDP and Inflation For all analysis questions, simply pointing at the numbers in the chart is not an answer because there is no analysis, there is no showing of understanding. Differences in numbers is not analysis, it's an observation which can be done by many people without an understanding of inflation or the formulas or the class. 1. The base year is 2017, The market basket is 32 milk and 18 plums. Year Qty Price Price GDP Growth rate GOP Growth rate Basket CPI Inflation Rate CPI Deflator Inflation Rate milk milk plums plums Nominal GOP Nominal Real GOP Real Price Deflator 2017 53 $3.29 109 50.50 5 5 5 2018 67 $4. 10 183 SO.75 S S 2019 77 $4.99 235 $1.66 S S Calculations:Give the chi-square statistic, the degrees of freedom and the P-value of the test. O x' = 4.01, df = 5, P