PS re-do

Question 1

How should we always write any (individual or govt) budget constraint

Answer 1

in present discounted value (current period)

Question 2

If we need to keep the debt:GDP ratio stable forever, and we have a fixed r and g, what do we need?

Answer 2

Specific primary balance cover

Question 3

Do we ‘double count’ when a domestic consumer buys something from abroad in the GDP expenditure approach (i.e. in C AND as a negative on NX)?

Answer 3

Yes

Question 4

Compare 2010 NGDP and 2010 RGDP (using 2010 as base level price)

Answer 4

they are equal

Question 5

What format should we give GDP deflator, CPI as?

Answer 5

1.5
1.6
etc

note: this does not reflect the price increase - 50%, 60%

Question 6

When 2 goods increase, but one increases more, what do we say about the other good?

Answer 6

It becomes relatively less expensive