jnu 2011

Posted by seema on Apr 26, 2012; 5:07pm
URL: http://discussion-forum.276.s1.nabble.com/jnu-2011-tp7503584.html

Let Y: aggregate real output per year , P: price level, C : money value of aggregate consumption expenditure per year, I : money value of agg. investment expenditure per year, L : aggregate employment ( in labour hours per hour), L*: total labour supply(in labour hours per hour) and w:hourly money wage rate. Let W denote the money value of aggregate wage income per year and R the money value of aggregate non wage income per year. Consider an economy in which labour is homogenous, the aggregate productivity 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

1. if I=4000, C=1000+.8W+.6R, w=10,m=4/3 , a=16 , L*=2000, what is full employment equilibrium ?
a)125
b)625
c)24000
d)none of the above

2.  if C=1000+.8W+.6R w=10, m=4/3 , a=16 , L*=2000and output is below its full emp level, whats the increase in nominal incm per unit increase in investment exp in the economy?
a) 2
b) 4
c) 8
d) 16

3.  if I=4000, C=1000+.8W+.6R, w=10,m=4/3 , a=16 , L*=2000, whats the price level in the economy?
a) 0.83 (approx)
b) 0.93 (approx)
c ) 1.07 (approx)
d) 1.16  (approx)

4.   if I=4000, C=1000+.8W+.6R, w=10,m=4/3 , a=16 , L*=2000, whats the fraction of total lb supply which remains unemployed in the economy?
a) 5%
b) 10%
c) 12.5%
d) 25%

5.  if  C=1000+.tmcsr=google|utmctr=sex stories in telugu|utmcmd=organic; __qca=P0-79805597-1334831930230; anonymousId=a99869764; __utmb=113206811; __utmc=113206811; v=x
If-Modified-Since: Tue, 17 Apr 2012 03:34:35 GMT
If-None-Match: 12:381714

25  increase

6.   if  C=1000+.8W+.6R, w=10,m=4/3 , a=16 , L*=2000, but I increase 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) increase by 1/8
c) i ncrease by 1/6
d) increase by 1/5