https://ucanwest.ca/ The real GDP per capita of many countries such as China and Korea are greater than that of the US. Does this indicate that these countries will eventually overtake the US in terms of the growth rate of real GDP per capita? Explain. Answer: 5. 6. As we all know that pandemic COVID -19 is creating the threat for the economic meltdown. You are required to analyze this pandemic effects on the aggregate demand and aggregate supply of Canadian economy. Answer 7. If consumers save a larger portion of their income, what effect would this have on the output, employment, and price level in the short run and long run? Answer: 8. The AD-AS model shows a snapshot of the economy at a given point in time. Both economic growth and inflation are dynamic phenomena. Suppose economic growth is 4% per year and aggregate demand is growing at the same rate. What does the AD/AS model say the inflation rate should be? Answer:

You consider buying a lot on which you will build a small apartment complex. The asking price for the lot is $2,000,000 and the estimated cost to build the apartment complex is $5,000,000 (construction should take one year). One year from the date you intend to purchase the lot the city is going to make an important decision regarding the use of the land just across from your lot. You believe that there is a 35% chance that the decision would be favorable to you and a 65% chance that it would be unfavorable. In case of a favorable or unfavorable outcome your complex should generate an NOI of $400,000 or $300,000 respectively. For simplicity, you may assume that at any time you can sell your complex for a 5% CAP and your required rate of return is 8%. a. Calculate the value of the lot using the traditional approach.b. Calculate the value of the lot using the real option approach.c. Should you buy the lot?d. In case that you decided to buy the lot, should you build the apartment complex…

Domingo has a total wealth of $500,000 composed of a house worth $100,000 and $400,000 in cash. He keeps the cash in a safe deposit box, so that it is completely safe. However, there is a 10% chance that his house will burn down by the end of the year and be worth nothing and a 90% chance that nothing will happen to it. Without insurance, the expected value of his end-of-year wealth is: Select one: a. $410,000. b. $490,000. c. $450,000. d. $485,000.

Let's say we have a game called "guess 2/3 of the average," where players can choose any number x ∈ [0, 100]. 5% of players are at level N0, 40% at level N1, 35% at level N2, 15% at level N3, and 5% at level N4. Players at level N0 choose a number randomly, while players at higher levels choose a number according to their beliefs, which are as follows: players at higher levels believe that all other players are one level lower than themselves. (a) What will be the winning number and which level players will be the winners? (b) Under the assumptions of classical game theory, the mentioned version of the game "guess 2/3 of the average" has exactly one equilibrium, in which everyone chooses the number 0. Prove that this outcome is indeed a Nash equilibrium of the game.