The current exchange for the Swedish krona is $0.1050. Inflation in Australia and Sweden is expected to be 4 and 9 per cent, respectively in the forthcoming year and 6 and 7 per cent, respectively in the following year. If purchasing power parity holds, what will be the value of the Swedish krona in two years?

The following figure was taken from the Australian Bureau of Statistics (ABS) website and it reports the unemployment rate in Australia.

In what year Australia had the lowest structural unemployment?

The diagram below presents two annual measures for 1985 - 2023 period.

1. The total compensation of employees divided by national income for

each year, or (w x L)/Y, where w is hourly wage, L is the number of hours worked and Y is the national income.

2. Unit labour costs (in real terms), for each year.

The data are from The Australian Bureau of Statistics.

In class, we presented the following production function:

Based on the data presented in the figure above and what you learned about the Cobb-Douglas production function:, what is the approximate measure of 𝛼 ?

The figure below presents the Japanese

and US CPI and Yen/USD Rate:

Note: Jap(P) is the price level in Japan and US(P) is the price level in the USA. Yen is the Japanese currency and USD is the US currency.

Choose the most correct statement:

In the following (unlabelled) diagram point "a" represents the initial equilibrium in the PAE two sector model. 

Point "b" represents:

Panda Express is a takeaway Chinese restaurant. They are considering investing in a machine that automates the cooking of bowls of rice. 

The machine costs $1,000 and has a physical depreciation rate of 1% per annum. 

It is expected that at the end of the year Panda Express could sell the machine for $500. 

The annual real interest rate is 1% per annum and the annual inflation is 4%. The expected inflation is also 4%.

If Panda Express buys the machine it can produce an extra 1,000 bowls of rice a year. 

Each bowl of rice is sold for $0.52. Should Panda Express invest in the new machine?

Country B adjusted its exchange rate to meet excess supply

of local currency. Choose one answer that describes what happened in Country B.

The above diagram represents the labour market in country X.

Point "a" represents the initial equilibrium.

The standard

labour demand and supply model predicts that setting too high a minimum wage will lead to unemployment.

Which of the diagrams below presents a labour market after the introduction of the minimum wage, such that the segment AB represents the number of of unemployed workers?

1. 

2. 

3. 

4. 

The diagram depicts how Country A maintains its exchange

rate at 0.25. Using the models we discussed in lectures, which answer below describes the situation in Country A in the most precise way?

The following data are for the country of Narnia.  Narnia is a closed economy. All variables are constant dollars, except employment which is the number of workers.

What is the labour share of national income in Narnia in 2021?