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Q1) Calculate real interest from the given data.

Real GDP growing at 5 %

Money growing at = 14 %

Nominal interest rate growing at = 11% 

Real interest = ?

Q2) Assume your economy has following production function...

Y=F(y,L) = K 0.4 , L=0.6

drive per worker production function =?

Q3) Expected inflation is 2% r = 5%

find nominal interest rate = ?

Q4)   Y= F(k,l) k.5 l.5

find the productivity per labour = ?

Q5) labor force 1000 , increase in population 5%

find change in labor force =?

Q6) Suppose labor force is 1000 in a year and population is growing 3% per year calculate a change in labor force delta L = ? 


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