JNU 2013 SSS DISCUSSION

[Arushi :))]

@ bin
exact formula is:
Var { aX+bY} = a^2* Var (x) + b^2* Var (y) + 2ab* covariance (x,y)

[Bin]

Thanks both of you!

1-d
12-d
13-b
15-d
34-d
45-b
50-a

[jack]

Q.54) d
Q.55) d
Q.56) c
Q.57) a

[Bin]

How do you solve questions 54-57?

[jack]

C is the function of current disposable income
so c(yd)
and mps =0.30
mpc=.070
C=500+.7(y-.15y+750)
so Y=C+I
Y=500+.7(Y-.15Y+750)+1000
solve this equation, you will get all the answers

[Bin]

Y works out to be 5000. But how do you find the investment multiplier?What is the formula?

[Ashima]

Inv Multiplier= -(mpc/mps)

[Bin]

Thanks Ashima and Jack!

[Anjali]

What about question 1 ?
I guess log function is continuous in its domain . So , ideally it should be (0,infinity) , but here we can take as (0,1) . Please help .
And can we discuss ques 10-15 here
Iam getting c for 10th .

[Anjali]

Also please help me with ques 33

[Ridhika]

For 33 If you initially take index to be 100 and out of that fuel and power part let it be 15.Now with 20% increase it increases to 18 so overall index goes up by 3 to 103.. so answer is a .. 

----- Reply message -----
From: "Anjali [via Discussion forum]" <ml-node+[hidden email]>
To: "Ridhika" <[hidden email]>
Subject: JNU 2013 SSS DISCUSSION
Date: Thu, Apr 24, 2014 10:20 PM

Also please help me with ques 33

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NAML

[Ridhika]

For 33 If you initially take index to be 100 and out of that fuel and power part let it be 15.Now with 20% increase it increases to 18 so overall index goes up by 3 to 103.. so answer is a .. 

----- Reply message -----
From: "Anjali [via Discussion forum]" <ml-node+[hidden email]>
To: "Ridhika" <[hidden email]>
Subject: JNU 2013 SSS DISCUSSION
Date: Thu, Apr 24, 2014 10:20 PM

Also please help me with ques 33

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NAML

[Anjali]

Thanks ridhika !

[Anjali]

What are you people getting for 60th ? B ?

[Anjali]

@Ashima , Iam not sure about your approach , but this is what I did for ques 36 -
International reserves are increasing , that implies that demand for our currency is increasing and capital is flowing in , so gradually currency will app and interest rate will go up , so savings go up.
This is just a guess. Let's wait for others to comment .

[jack]

Q.60
I got option b

[jack]

What r you people getting for Q.64-66??
64-A
65-B
66-C
Is it right?

[Anjali]

So jack popn growth rate is redundant in ques 60th ?

[Anjali]

Jack for 64 - c
65- c/ d ( m stuck here ) I guess c
66- c

[Ridhika]

@Anjali for 36 - I'm thinking wont it have an impact on ex post variables? As ex ante no one could have known that international reserves would increase.. No?

@Jack - how are u solving 60?

Can someone please explain 26 and 45 as well.. Im getting confused :(