Macroeconomics FINEC version 15

1. The growth of government spending, real GDP increased only if:
a) government spending directed to the purchase of goods and services rather than to pay for public officials;
b) an increase in government spending are accompanied by money supply;
c) government spending does not crowd out of an equivalent amount of spending in the private sector;
g) government spending financed through the issuance of government
securities;
d) all of the previous answers are not correct.
2. Within a period of time the country experienced a higher rate of inflation than in partner countries. As a result, the economy will be: a) a decrease in imports of goods; b) a decrease of exports of goods; c) a decrease in interest rates; d) reduction of the money supply. Explain your answer.

1. According to the model, R. Solow production function is of the form Y = 0,84K0,5, the rate of disposal of equity d = 3% population growth rate n = 2%, the pace of technological progress g = 2%. Determine the capital-labor ratio and the savings rate, corresponding to the "golden rule of accumulation."
2. If a mixed open economy the share of consumption in the composition of national income is 70%, the share of government spending is 18%, the share of net exports equal to 7%, and the budget deficit reached 4% of the national income. To determine the proportion of private savings as part of the national income.