Re: SAU PAPER

Posted by Economics student on Apr 03, 2014; 7:28am
URL: http://discussion-forum.276.s1.nabble.com/SAU-PAPER-tp7585693p7586051.html

37th is simple.

S1 / S0 = (1 + Iy) ÷ (1 + Ix)

Where,
S0 is the spot exchange rate at the beginning of the time period (measured as the "y" country price of one unit of currency x)
S1 is the spot exchange rate at the end of the time period.
Iy is the expected annualized inflation rate for country y, which is considered to be the foreign country.
Ix is the expected annualized inflation rate for country x, which is considered to be the domestic country.

Use this, you will get.

44th

Y=k^0.4*L^.6
take log both side, we get
log Y=.4logK+.6logL
then differentiate
d(logy)=.4d(logK)+.6d(logL)
we know that growth rate of capital=8
growth rate of labor=2
put these value in the equation
So
d(logY)=0.4*8+.6*2
3.2+1.2
4.4


45th

2.33 Sample variance, so you take n-1 in denominator.

Rest even I dont know.