1) Which of the following would be an example of an intermediate good? A) An oven purchased by a baker for his business. B) New tires purchased at your local garage to replace your old ones. C) A wedding ring purchased by an engineer for his fiancée D) Flour purchased by a baker to make her cookies. 2) A transfer payment is a payment by the government to an individual A) for a service. B) for an investment good. C) for a consumption good. D) for which the government does not receive a good or service
Premium Inflation Unemployment
Practice Problems: Chapter 2‚ Chapter 3‚ and Chapter 4 Chapter 2: 1). Consider an economy that produces only hot dogs and hamburgers. In the following table are data for two different years. 2010 2015 Good Quantity Price Quantity Price Hot Dogs 200 $2 250 $4 Hamburgers 200 $3 500 $4 a) Using 2010 as a base year‚ compute the following statistics for each year: nominal GDP‚ real GDP‚ and GDP deflator. Please show your work to get full credit.
Premium Inflation Economics Gross domestic product
No‚ AD = 1000 e. If output is equal to 1000‚ calculate private savings. Is this equal to Investment? Private Savings = Y – C - T f. Calculate the marginal propensity to consume? g. What is autonomous consumption? 2. Suppose that a person’s wealth is $50‚000 and that her yearly income is $60‚000. Her money demand function is given by M = $Y(.35 –i) a. What is her demand for money
Premium Macroeconomics Inflation Money supply
ECO 2013-02 Spring 2003 Second Midterm‚ 6 March 2003. 1) The quantity of real GDP supplied ________ the amount of ________. A) increases as; labor input decreases B) decreases as; capital input increases C) decreases as; capital and labor input decreases D) is unaffected by; technology 2) If the economy is at the natural rate of unemployment‚ A) real GDP > potential GDP. B) real GDP < potential GDP. C) real GDP = potential GDP. D) All of the above can occur when the economy is
Free Monetary policy Inflation Supply and demand
NAME: _________________________________ Student ID: __________________________ College of Business Administration Department of Economics Principles of Macroeconomics O. Mikhail ECO 2013 - 0008 Spring 2004 QUIZ V – Version 2 • • • • • This closed book QUIZ is worth 100 points. The exam totals 45 Multiple-Choice questions. Each Multiple-Choice question is worth 2.22 points. Allocate your time accordingly. Including the cover page‚ the exam totals 10 pages. DO NOT forget to write your name and
Premium Unemployment Inflation Macroeconomics
Macroeconomic Definitions Absolute advantage | Absolute advantage occurs when a country or region can create more of a product with the same factor inputs | Accelerator effect | Planned capital investment by private sector businesses is linked to the growth of demand for goods and services. When consumer or export demand is rising strongly‚ businesses may increase investment to expand their production capacity and meet the extra demand. This process is known as the accelerator effect. But the
Premium Inflation
CHAPTER 16 Government Debt Questions for Review 1. What is unusual about U.S. fiscal policy since 1980 is that government debt increased sharply during a period of peace and prosperity. Over the course of U.S. history‚ the indebtedness of the federal government relative to GDP has varied substantially. Historically‚ the debt–GDP ratio generally increases sharply during major wars and falls slowly during peacetime. The 1980s and 1990s are the only instance in U.S. history of a large increase in
Free Tax Public finance Deficit
government interference. 3. These models operate in a closed economy which has no foreign trade. 4. There are no lags in adjustments between investment and creation of productive capacity. 5. The average propensity to save is equal to the marginal propensity to save. 6. The marginal propensity to save remains constant. 7. The capital coefficient‚ i.e.‚ the ratio of capital stock to income is assumed to be fixed. 8. There is no depreciation of capital goods which are assumed to possess infinite
Premium Investment Economics Inflation
CONSUMER DEMAND AN ECONOMETRIC IN HONG KONG ANALYSIS 1 E. R. LIM * Introduction The objectives of consumer demand analysis are first‚ to isolate a few major variables from the many and complex factors influencing consumer behaviour‚ and second‚ to verify empirically that this relatively small number of parameters gives a reasonable explanation of a wide range of observations on consumer behaviour. The quantitative knowledge thus obtained is necessary for the study of economic development
Premium Consumer theory Household income in the United States Regression analysis
Introduction The way we conceptualize the world and the assumptions we make influence both the explanations we provide for certain events and the policies we develop in relation to them. Therefore‚ tracing the history of ideas can help us understand many of our current actions‚ institutions‚ theories. This holds true especially in the field of economics where one of the dominant ideas throughout the years has been the concept of laissez-faire – the idea that markets should be unfettered by the
Premium Keynesian economics