Actual product (GDP) is: 3800; the potential product is: 3900; autonomous taxes are: 450; government

transfer payments are: 270; government purchases of goods and services are: 480 and the income tax
rate is: 0.2. Calculate (write integers):
a) actual budget balance:
b) structural budget balance:
c) cyclical budget balance:
The general equation of the budget balance is: BS = TA + t * GDP - TR - G. The income tax rate
is constant. How will the budget balance line change if:
a) government purchases of goods and services declines:
b) the tax rate increases:
The following data is available on the economy. The total population is: 14 million people; employed,
including the self-employed: 7.7 million people; the workforce: 8.3 million people and students 250,000
.Calculate:
a) economically inactive population (state in millions of persons):
b) number of unemployed (state in millions of persons):
c) ) unemployment rate (calculate to two decimal places and state without a percent sign):
The Czech investor has CZK 11,000,000. There are two investment options, the interest rate in the
Czech bank is 4% and in Sweden 2%. The current exchange rate is 3.2 CZK/SEK. the expected
exchange rate for the year is 2.8 CZK/SEK. We assume zero currency conversion costs, the same risk
and liquidity, and zero inflation.
a) calculate the expected yield of the Swedish variant (including the principal, write the whole number):
b) The investor will invest in:

c) If more investors notice this investment opportunity, the Czech currency in the initial period:
The consumer basket consists of only three goods. Their weights in the basket and their prices are shown in the table.
The starting (base) year is 2010.
Calculate (always round to two decimal places - including intermediate results, always write the result to two decimal
places):
a) CPI in 2011:
b) CPI in 2012:
c) year-on-year inflation rate in 2011 (write without the % sign):
d) year-on-year inflation rate in 2012 (write without the % sign):
weights
in % 2010 2011 2012
good A 15 70 71 80
good B 60 34 35 37
good C 25 110 112 120
The balance of goods is in the
balance of payments part of:

financial account
capital account
net errors and omissions
current account
Assume the currency market of the Czech koruna against the euro. If the demand for Czech
goods in the euro area increases, under otherwise the same conditions:

the demand for Czech crowns will increase

the Czech koruna will depreciate

the euro will appreciate

the supply of Czech crowns will increase

Assume an aggregate demand and supply model. The central bank buys securities from a commercial bank. As
a result:
a) price level in the short term:
b) unemployment in the short term:
c) real product in the long term:
Nominal product (GDP) increased by 5%, real product (GDP) decreased by 2%, unemployment rate was 7%
and money mass (supply) increased by 1%. Calculate:
a) Percentage change of price level
b) Percentage change of money velocity
 Market Exchange rate is 2,0 D/F (D – home currency, F – foreign currency). The basket of goods and services
in home country costs 27 D. The same basket of goods and services in foreign country costs 21 F.
Calculate:
a) Absolute purchasing power parity
b) Is home currency undervalued or overvalued against parity? (calculate a ERDI)