Pls help....DSE question no.50 from 2012..

[Abhyudaya]

Any answer or approach to solve d problem wud be appreciated....
even a method explaining d answer wud suffice....

:) :)




http://economicsentrance.weebly.com/uploads/1/1/0/5/1105777/2012-option-a.pdf

[duck]

Hi Abhyudaya.. :)

Only Statement 3 is correct.

To rule out statement 1, use the following example:
n=2, x=(-1,-2) , y=(2,3)

To rule out statement 2, use the following example:
n=2 , x=(-1,-2)

Statement 3 proof:
LHS: x*cy = ∑xi|cyi| = c∑xi|yi|      [As c is strictly positive]
RHS: c(x*y) = c∑xi|yi|
LHS=RHS
Hence, proved.

[Abhyudaya]

Thanks Duck!!

Could u also tell me d approach to solve q no. 51 of same paper...pls

also guide me how to solve macro questions from Part B...means m not
 able to use my all knowledge to make appropiate equations....where shud i practice
questions of macro where they r given in paragraphs...

Help a desperate DSE aspirant..... :)

[duck]

Hi.. :)

Please refer the following discussion for Q51.
http://discussion-forum.2150183.n2.nabble.com/DSE-2012-Q51-td7582173.html

[duck]

For Macro questions, they clearly specifies the enitre model and then from the required information you just need to differentiate and do the comparative statics.
I advise you to be thorough with differentiation to solve them.. :)

[maahi]

can u show ur working for 51 ? i m nt getting d answer


what if c were negative or zero ??

[Prerna]

Hi Maahi

Ques 51.

Wt = Pt/(1 + u), substitute this in the wage setting equation.
==> Pt/(1 +u) = PteF(ut,At) = Pt = PteF(ut,At)(1 +u)

Divide throughout by Pt-1 and substitute for Pt/Pt-1 = Πt -1 and Pte/Pt-1 = Πte -1

You will get your answer :)

[maahi]

Hi prerna

m very sorry i meant  q 57 . i just checked it . this one was discussed previously

[duck]

Hi Maahi.. :)

57) Just plug in C, I, X, ε in IS equation and differentiate it wrt P*.

[maahi]

Y = C+ I + G +  X  - IM/e

Y= C0 + C1Y +D1y -d2r  + G + x1 Y* - x2 e  - (m1Y + m2 e)/ e

Y = C0 + c1Y + d1Y - d2r  + G + X1Y* - X2 ( E P*/P)  -  m1Y / (Ep*/P)  - m2

dy /dp* = 0 + c1 dy/dp* + d1 dy / dp*  - 0  + 0 + 0 - (X2 E)  /P -  (m1P)/E * dy/dp* - 0

please tell me where am i going wrong

[duck]

Y = C0 + c1Y + d1Y - d2r  + G + X1Y* - X2 ( E P*/P)  -  m1Y / (Ep*/P)  - m2
Take total differential both the sides.
dy = c1.dy +d1.dy - (x2.E/P)dP* - (m1.P/E)[P*.dy - Y.dP*]/(P*)^2

Y and P* both are variables.

[maahi]

dy = c1.dy +d1.dy - (x2.E/P)dP* - (m1.P/E)[P*.dy - Y.dP*]/(P*)^2

dy (1- c1 -d1 ) = -x2 E/P DP*  -(m1P/E) { dY / p* - YdP*/ P *^2}

dy( 1-c1-d1 + m1/e ) =[ -x2 .E/P  + (m1 P/E )Y /p*^2] dp*

 RHS ={ -X2 e + m1 y/e} 1/p* dp*

minus??