Economics project

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Economics project

  1. 1. 12BSP0196 LAV SOOD 12BSP0233 ARUN SINGH 12BSP0426 GAURI SHARMA GREESHMA 12BSP0435 TIWARI 12BSP0452 HARPAL SINGH DUSHYANT 12BSP0514 RAGHAV 12BSP0607 KUSHAGRAQ 1: Until the early 1990s, the U.S. government emphasized GNP rather than GDP as ameasure of economic well being. Which measure should the government prefer if itcares about the total income of Americans? Which measure should it prefer if it caresabout the total amount of economic activity occurring in the United States?Q 2: Explain why the following statements are false.a. the aggregate- demand curve slopes downwards because it is the horizontal sum ofthe demand curves for the individual goodsb. the long-run aggregate- supply curve is vertical because economic forces do notaffect long-run aggregate supply.c. if firms adjusted their prices every day, then the short run aggregate- supply curvewould be horizontal.d. whenever the economy enters a recession, its long-run supply curve shifts to the left.
  2. 2. 12BSP0682 MOHIT CHAUHAN 12BSP0687 MOHIT LOHIA 12BSP0818 PALLAVI BHASIN 12BSP0825 PANKAJ SHARMA PRASOON KUMAR 12BSP0883 SINGH 12BSP1079 SAKSHI KAPILA SIDHARTH 12BSP1218 MANCHANDAQ 1: Below are some data from the land of milk and honey.Years Price of Milk Quantity of Price of Honey Quantity of Milk (quart) Honey (quarts)2005 $1 100 $2 502006 $2 200 $2 1002007 $3 200 $4 100 a. Compute nominal GDP, real GDP and GDP deflator for each year, using 2005 as a base year. b. Compute percentage change in nominal GDP, real GDP and the GDP deflator in 2006 and 2007 from the preceding year. For each year, identify the variable that does not change. Explain in words, why your answer makes sense. c. Did economic well-being raise more in 2006 or 2007? Explain.Q 2: what might shift the aggregate demand curve to the left? Use the model ofaggregate demand and aggregate supply to trace through the short run and long runeffects of such a shift on output and the price level.
  3. 3. 12BSP1334 UDAY KUMAR12BSP1336 UDIT PRATAP SINGH12BSP1440 SURABHI DAS12BSP1464 KSHIPRA GANGAY12BSP1558 MANALI MATHUR12BSP1599 SAHIL ARORA AVINASH KUMAR12BSP1658 SINGHQ 1: one day Barry and Barber, Inc., collects $400 for haircuts. Over this day, hisequipment depreciates in the value by $50. Of the remaining $350, Barry sends $30 tothe government in sales taxes, takes home $220 in wages, and retains $100 in hisbusiness to add new equipments in the future. From the $220 that Barry takes home, hepays $70 in income taxes. Based on this information, compute Barry’s contribution tothe following measures of income. a. Gross Domestic Product b. Net National Product c. National Income d. Personal Income e. Disposable Personal IncomeQ 2: suppose that economy is currently in a recession. If policymakers take no action,how will the economy change over time? Explain in words and using aggregate demandand aggregate supply diagram.
  4. 4. 12BSP1660 BHARTI SHARMA12BSP1728 KHUSHBOO SHARMA12BSP1805 RICHA SEHGAL12BSP1935 RAGINI AGARWAL12BSP2023 DEEPIKA JHAMTANI12BSP2024 DEEPIKA SINGH12BSP2026 DEVESH CHOTALIAQ 1: For each of the following events, explain the short-run and long-run effects onoutput and the price level, assuming policy makers take no action.a. The stock market decline sharply, reducing consumer’s wealthb. The federal government increases spending on national defensec. A technological improvement raises productivity.d. A recession overseas causes foreigner to buy fewer U.S. goodsQ 2: what components of GDP (if any) would each of the following transaction affect?Explain. a. A family buys a new refrigerator b. Aunt jean buys a new house c. Ford sells a Mustang from its inventory d. You buy a pizza e. California repaves Highway 101 f. Your parents buy a bottle of French Wine g. Honda expands its factory in Marysville Ohio.
  5. 5. 12BSP2030 GAURAV YADAV12BSP2048 MUNITA SHARMA12BSP2091 SORAV SHARMA12BSP2140 SATHI BORAL12BSP2163 DHEERAJ CHHABRA12BSP2176 KASHIF HUSSAINQ 1: suppose that firms become very optimistic about future business conditions andinvest heavily in new capital equipment. a. Draw an aggregate demand/ aggregate supply diagram to show the short run effects of the optimism on the economy. Label the new level of prices and real output. Explain in words why the aggregate quantity of output supplied changes. b. Now use the diagram from part (a) to shoe the new long run equilibrium of the economy. (For now assume that there is no change in the long run aggregate supply curve.) Explain in words why the aggregate quantity of output demanded changes between the short run and long run. c. How might the investment boom affect the long run aggregate supply curve? Explain.Q 2: if prices rise, people’s income from selling goods increases. The growth of realGDP ignores this gain, however. Why, then, do economists prefer real GDP as ameasure of economic well being.
  6. 6. 12BSP2202 RAHUL SANWARIA12BSP2209 SAURAV KUMAR12BSP2223 VIDHU KHATRI12BSP2236 AKASH BANSAL12BSP2340 ASMA CHISHTI12BSP2341 ATUL KESHARWANI12BSP2460 MANSI MUNJALQ 1: what might shift aggregate supply curve to the left? Use the model of aggregatedemand and aggregate supply to trace through the short run and long run effects ofsuch a shift on output and the price level.Q 2: the participation of women in U.S. labor force has risen dramatically since 1970. a. How do you think this rise affected GDP? b. Now imagine a measure of well-being that includes time spent working in the home and leisure. How would the change in this measure of well-being compare to the change in GDP? c. Can you think of other aspects of well-being that you associated with the rise in women’s labor-force participation? Would it be practical to construct a measure of well-being that includes these aspects?

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