JNU ECOM 2011 QUES 11-22 {Must see}

[Arushi :))]

QUES11

Answer-

QUES 12

Answer-b
QUES 13,14

Answer
13-a
14-d
QUES 15 What is the rate of growth of real GDP (base year I) in year III?
a. 10%
b. 13.67 %
c. 18.18 %
d. 20 %
Answer-d
Questions 16-22 are to be answered on the basis of following information:
Let Y: aggregate real output per year
     P: the price level
     C: money value of aggregate consumption expenditure per year
     I: money value of aggregate investment expenditure per year
     L: aggregate employment (in labour hours per year)
     L*: total labour supply (in labour hours per year)
     w: hourly money wage rate
Let W denote the money value of aggregate wage income per year, R the money value of aggregate non-wage income per year.
Consider an economy in which labour is homogenous, the aggregate producitivity of labour (Y/L) is a constant a and the price level (when output is below its full employment level) is a factor m times the wage cost per unit of aggregate output . The price at full employment is always greater than or equal to that at below full employment.
In equilibrium , PY= C+I
QUES 16
If I = 4000, C = 1000+0.8W+0.6R, w= 10, m= 4/3, a=16, L*=2000. What is the full employment level of output in the economy?
a. 125
b. 625
c. 24000
d. None of the above
Answer-d
QUES 17
If C = 1000+0.8W+0.6R, w= 10, m= 4/3, a=16, L*=2000, and output is below its full employment level, what is the increase in nominal income per unit increase in investment expenditure in the economy?
a) 2
b) 4
c) 8
d) 16
Answer-b
QUES 18
If I = 4000, C = 1000+0.8W+0.6R, w= 10, m= 4/3, a=16, L*=2000. what is the price level in the economy ?
a) 0.83 (approx)
b) 0.93 (approx)
c) 1.07 (approx)
d) 1.16 (approx)
Answer-a
QUES 19
If I = 4000, C = 1000+0.8W+0.6R, w= 10, m= 4/3, a=16, L*=2000. what is the fraction of total labour supply which remains unemployed in the economy?
a) 5%
b) 10%
c) 12.5 %
d) 25%
Answer-d
QUES 20
If C = 1000+0.8W+0.6R, w= 10, m= 4/3, a=16, L*=2000, but I increases from 4000 to 5000, what is the resulting change in the price level in the economy?
a) 0%
b) 5% increase
c) 10% increase
d) 20% increase
Answer-a
QUES 21
If C = 1000+0.8W+0.6R, w= 10, m= 4/3, a=16, L*=2000, but I increases from 4000 to 7000, what is the resulting change in the price level in the economy?
a) 0%
b) 5% increase
c) 10% increase
d) 20% increase
Answer-c
QUES 22
If C = 1000+0.8W+0.6R, w= 10, m= 4/3, a=16, L*=2000, but I increases from 4000 to 7000, what is the change in the share of non-wage income in the total income of the economy?
a) No change
b) increases by 1/8
c) increases by 1/6
d) increases by 1/5
Answer-b

[Arushi :))]

Help with ques 11,13,14,15

[Arushi :))]

I am attaching these solutions provided by sir for question 16-22
Ques 16
aL*= 16x2000= 32000. Therefore, d is the answer
Because Y/L is a constant a
Ques 17

Ques 18,19

Ques 20,21,22

[E A Ibrahim]

I am getting these answers for questions 13-15.
 
13. 23
14. 160.87
15. 21.05

These are not there in the options. Maybe, you too are getting the same answers. I think the questions are wrong (We got the right answer for question 12. So our method is not wrong). If anyone gets some other answer, please share.

[Arushi :))]

Okay so I found my mistake :D
Didn't read the para , just saw the table !
Its given only X & Y are final goods , so only they should be included in GDP calculation!
So, my answers are 16.5, 18, 150 and 20%
Someone verify

[Arushi :))]

And ques 11

[E A Ibrahim]

I too didn't read the para.

I think the answer for question 11 is option D None of the above

Since equilibrium income is 1750, which is above 1500, consumption function is valid only upto 1500 units. The remaining 250 is saved (invested), since S=I.

Of the 1500, 200+0.6*1500=1100 units are consumed. Remaining 400 units are also invested (saved).

Aggregate consumption= 1100
Aggregate investment = 650

So, the value of investment required is 650, which is corresponds to option D.

I am not entirely sure of my answer. Please come up if you have a better answer.

[Akshay Jain]

Ibrahim is correct.....the ans is option D

[Ridhika]

Yup, I got the same thing!

[suvidya patel]

12 . GDP at current price=pxqx+pyqy
                               1.5*3+2*6
                                 16.5
 
13.  GDP at constant price= 6*1+6*2
                                   18

14.  GDP defaltor= nominal gdp/real gdp
                        6*1.5+3*6/18
                      150
15. rate of growth=real gdp3-real gdp2/real gdp2
                              18-15/15*100
                       20%