Problem Set a
I Inflation rate
器器
1851 5.71
New schedule after adjusting
iii
same inflation rate
Real Interest rate nominal intent rate
2
rate of influtig
2 lcqo rate of inflation
nominal 109
rate
of inflation 89
C
89
rateof inflation
Ptayqil 108
CPI a
yearlater
3
CPI
2003 25millich Decaoc3 185.5C0
2013 7amillion CP吉
ecaa3 234.719
2003
money to2013 25million 了
203
25million
器ci31millin
7omillion 31million
Julia Roberts earns more on
the second movie 70millia
of
4 inflation re a49
nominal interest rate 4.29
real interest rate nominalinterest rata
inflation rate
4.29 to 49
4.69
a cccx104.2 104
real interest rate i
b 4.6
C
real interestrate 4.29 1.5
a 790
5
GPP 器 笀
Germany GPP 1980 14114
Germany GDP240 2066I
Japan GPP1980 13428
Japan crPP2to 21935
ratio of employment
1980 2010
0 33 c 52
Germany
0
Japan c 48 49
Germany 1980 1 42769
Germany adciǎsztt 39732
Japan 198c
13g 27915
Japan solo 2
44765
Germany incrous 347
Japan increases i
器 d 7.2
447925i xa9 it
For Germany the cutputper person decreased
the ratio of
employmen
because of big
growing
For Japan it increases a lot because of
the greate increase on real GDP perperson
and a table ratio of employment
6 It should use monetary policy to
save but to
encourage people not to
invest their money into the market to
produce the products
policies
It also should use some foregin
to attract oversea investment to
to increase
develop its industry ability
the capital factorand technology factor
D Government expenditure Tax collections
Govermt transfer
Dud surplus
p
12cc 4ce 1C0
70C
Private saving GDP TaxtTransfers [Link]
60 1200 400 4500
7cc
Investment i
GDP cnsumptin
[Link]
6000 45cc 700
800
8 consumption GDP Tax PirateSaving
8trillion 1 5trillion a5trillin
6trill in
Taxes Public Saving
government purchase
1.5trillion 0.2trillin
1.3trillion
national saving BivatesaviytPublicsang
[Link]
a
n
Invest med Nationalsaving a7trillion
9 Inclusive The representativelegislature
public education institutions and an
open market unite together to
invest and improve the infrastructure
The whole society work together to
improvetuelofeqaulity
Extractive A small groups of
elites decide ever and policies
thing
of a
country to
satisfy their own
interests
lined to
b The inclusive institutions is in
extractive institutions in the 0.5
Example are the festering economic caused
political failure and the economic
by
growth satisfying
smaller groupsof people
dysfunction and the
The national
failure of democracy
c
a
Agrewtina 1914 10 105 04951
2004 10 347.64341
b In 1989
45560.13
D
T 3.523
II
a
Richland
year I 4ccx1029 408
year2 4ccx1029 x c29 41616
b In the year of T
the app person equals to GPP in
the original year mutiply
T times of itannul increase rate
5
C 799.96
Richland 4cc Clt o 02
22
Poor Land 2cc ltac45789
d Richland
受 35
Rcorland 175
Yes it is a good appremiiidticn