Capitulo 23 1. What components of GDP (if any) would each of the following transactions affect? Explain. a. A family buys a new refrigerator. b. Aunt Jane buys a new house. c. Ford sells a Mustang from its inventory. d. You buy a pizza. e. California repaves Highway 101. f. Your parents buy a bottle of French wine. g. Honda expands its factory in Marysville‚ Ohio. A= a‚ b‚ c‚ d‚ f When they buy a new fridge they are contributing on the economy because its new‚ with the house it’s the
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Econ 103 Ch 4: Page 88 (page 490 in Economics) 1. Define GDP and distinguish between a final good and an intermediate good. Provide examples. GDP is the market value of all the final goods and services produced within a country in a given time period. A final good or service is an item that is sold to the final user‚ that is‚ the final consumer‚ government‚ a firm making investment‚ or a foreign entity. An intermediate good or service is an item that is produced by one firm‚ bought
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Central Banks around the world have been carrying out expansionary policy (quantitative easing) through open market operations since the start of the financial crises. Explain the purpose of this policy and discuss potential risks associated with it. Describe the impact on output‚ unemployment‚ interest rates and prices in the short and medium run. How effective do you expect this policy to be and what factors does its efficacy depend on? With the emergence of recent financial crisis‚ economies
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problems facing the FED in achieving its goals of monetary policy and give your recommendations on how to deal with each of the problems you list. Inflation presents a problem for the FED achieving it’s goal of price stability. Inflation is unavoidable as far as the natural progression of an economy is concerned. Supply and demand also affect inflation. While the FED cannot control supply and demand of a product‚ I would suggest that they try to control price stability by creating regulations of what
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assessment: Answer any five (5) of the following questions. Each question is worth 10 marks. Question 1: Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month? Explain your choice. (a) The cost of cocoa (1 mark). (b) Business rates (local taxes).(1 mark) (c) An advertising campaign for a new chocolate bar. (1 mark)………………………………........ (d) The cost of electricity (paid quarterly) for running
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patients with high cholesterol‚ it was found that 67% have heart disease. Is this a population or a sample; explain your answer. Population‚ because it is the study of a number of people for a particular study. b) An investigation of 150 randomly selected local restaurants concluded that 42% of local restaurants have serious health code violations. Is this a population or a sample; explain your answer. Sample‚ because it is the study of a much smaller group of people. 2) Determine whether the
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ECON 4020 Spring 2008 Midterm exam 1 Name __________________________________________ This is a closed book exam. Exam is out of 100 points. Answer all the questions. Show all your calculations. Explain your answers in the essay type questions. You have 50 minutes to finish this exam. Academic Integrity: In cases of a violation of academic integrity it is the policy of the Department of Economics to impose the most severe penalties that are most consistent with University guidelines
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Growth Story What drove India’s growth in the pre-crisis period and what explains the current moderation? 4 What is the inflation story? Year-on-Year Inflation Rates 11 9 7 per cent 5 3 1 -2 Oct/09 Oct/10 Apr/10 Apr/11 Oct/11 Apr/12 Jan/10 Jan/11 Jan/12 Jul/10 Jul/11 WPI - Headline WPI- Non-food Manufactured Products 5 Moderation in WPI not transmitted to CPI Year-on-Year Inflation Rates 11 10 per cent 9 8 7 6 Jan/12 Mar/12 Feb/12 May/12
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The expected spot rate one year from now is assumed to be $1.66. What percentage depreciation does this reflect? [$1.66 – $1.73]/$1.73 = –4.05% Hence‚ the expected depreciation is 4.05%. 2) Assume that the U.S. inflation rate becomes high relative to Canadian inflation. Other things being equal‚ how should this affect the (a) U.S. demand for Canadian dollars‚ (b) supply of Canadian dollars for sale‚ and (c) equilibrium value of the Canadian dollar? (a) The demand for Canadian dollars
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Trade and Development — Paper 2 Questions -AD/AS Diagram to explain effect on national output 1) Using information from the text/data and your knowledge of economics‚ discuss the likely impact of an appreciating currency on the performance of the Philippine (or any) economy. More likely to import less likely to export (reduction in AD) Increase in demand of Philippine currency Decrease in supply of Philippine currency More wealth abroad (increased real wealth) Cyclical unemployment
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