MURERTI OF mANDUy see Tutorial 2 (ECO3043) Please answer all questions. Chapter: Introduction to Macroeconomics: 1. Which of the following isiMOT:2 topic studied In Macroeconomics? the inflation rate mr 'B)the price of Deli computers the unemployment rate ) gross domestic product 2. Which of the following Is 2 tople’studied in Macroeconomics? ‘A) the decision-making behavior of individual business firms - mao ‘households + ‘individual the functioning of individual industries « Ghatirete bata of enacts nd indus 3. Prices that do not always adjust rapidly to maintain equality between quantity supplied ‘and quantity demanded are A) regulatory prices. 8) administered prices. prices. 3) market prices. 14, The demand for com has increased in May without any change in supply. Eight months there still has been no change in com prices. This Is an example of a control. B) macroeconomic price. ©) price floor. D) sticky price. AetiaNien —— anewout ngperinglation - incrcaye Otay aerianen = decree,oma as a(7) a. Apo during whieh agoregate output (Es KO" AA) inflation. « recession, « expansion. « D) hyperinflation. 9. A period when the economy. shrinks Is known as A) @ contraction. -» renperaaran B) a Sump. + trwwanaren C) a recession .~«semeunten il of the above. 10. In a business cycle, a peak represents the end of and a trough represents the end of Be. hia ‘A) a recession; an expansion me B) a trough; a peak 4 ).a depression; an expansion On ‘expansion; a recession eon. 11, It has become conventional to dassify an economic downturn as 3 recession when aggregate output declines for three consecutive quarters, €B) two consecutive quarters. ) six consecutive quarters. D) a year. 12, If the labor force Is 500 and employment is 450, then the unemployment rate is A) 100%. ropreymen) + $2.00 90%. 10%. laren feet” S00 0%. 13, Unemployment implies that in the labor market quantity demanded of labor exceeds quantity supplied. « iva sages Gey (B)ythere is an excess supply of labor. C) there is an excess demand for labor. « D) there are too few workers for the jobs available. ~ 14, Which of the following statements is FALSE? A) During a recession, output and employment are falling. ~ B) The rate of change In economic activity is used to assess whether an economy Is expanding or contracting. Short-term ups and downs in the economy are known as business cycles. ~ Business cycles are always symmetric mthe length of an expansion is the same as the Téngth of a contraction. 15. If 20 million workers are unemployed and 180 million workers are employed, then the Is 0%. 11.1%. unemployed + som ©) 18%. favor foe + Wer30 D) 80%. * 300 nn 20m — 1100 = 0% 200»,Production {c A) gross national product sen ) net national product. nar Net national income. «vey ress domestic product. + cor ae measures ) the a ll output inthe economy. | income of everyone in the economy, the total sj Blof Bends of everyone n te economy, 3. Which of the following is an example of a final good or service? p wheat a bakery purchases to make bread » lumber purchased by a construction company to used in building houses + ‘2 Computer purchased by Federal Express to track shipments - D) coffee beans Starbucks purchases to make coffee « 4. Which of the following is @ good or service counted in GDP? ver! A) a used tire you buy for your personal car » Poke eg aaet B) a new tire you buy for your personal car 6 used tires bought by a used car dealer to put on a car on his Jot ~ 1. The factors of, of all and within a given’ a in a given period by tires Ford buys to put on a car ~ 5. Which of the following would NOT be counted in 2013's GDP? @ the value of a 2008 boat you purchase from a boat dealer in 2013 B) the 2013 salary of a used motorcycle salesperson ©) the value of a refrigerator manufactured in 2013 but not sold in 2013 D) the commissions earned by a real estate agent in selling condominiums built prior to 2013 ewe 6. Gross national product is the total market value of A) all final and intermediate goods and services produced in a country, regardless of who ‘owns the resources. B) all final goods and services produced in a country in a given year, regardless of who owns the resources. Call final and intermediate goods and service produced by resources owned by @ country in regardless of ‘a given year. all final goods and services produced by resources owned by a country, where production takes place. 7. 1f ;, but many of the country's companies ave then ‘A) the country's GDP will tend to be equal to its domestic income. B) the country's GNP and GDP will tend to be equal. country’s GDP will tend to exceed its GNP. the Ore country’s GNP will tend to exceed its GDP.) GDP; GNP eam in the U.S: counts in GNP. 3B) both U.S. and Mexican GDP. of the U.S. in 2012 was around $15.9 trillion. This means in the U.S. in 2012 was around $15.9 trillion. 2012 was around $15.9 trillion. round $15.9 AA) that total income 8) that the value of output in the U-S. i ©) at nel spending on final goods and services Inthe 9, in 2042 nas 2 tuillion. {Pall ofthe above= structure Question 1 Year iy [2oa-}-— 2009 2010 ‘Compute the below items for each year (2008, base year. © Nominal Gop ; Gewrans: gear ie BH 1 e100 3019 = 1+ 300 = 200 so1a = 3 «200 = 400 () Real GDP eau yer me 200Q = ear ~ 200 = 300 polo = fit x 300 = 200 (li), GDP deffator 5 ey > 200 ‘900 1x00 = x00 Price of miik Quantity of Below are'some data from the land of milk and honey. rice of Dee SO ae milks | jabOney RML 100 RM2 RML 200 RM2 RM2 geo e e200 RxO, ave ® Honey, © Ne Sleae co. =N20 sceneries = 2ce goa = 2+ 190 = 200 ‘3008 = a0 +308 goo 4 #100 490 Boro > Hoo “HOS Sens ©) Bray GOP 3000 wa 4 50. = 100 2808 top wen > 300 poo e = ware 160 ° |___RM4 2009 and 2010), using 2008 as the 2009 = so ro = HOO soo = 00 Nominal Go? Se e000 Rear GOP 2000 > 400, 00 2010 + yoo = (00 s e $2 100 foo 300 | 12. Answer the following questions. ®%_ Wage and salary *« Rent <2) Household: Goneumption Expenses ——— Neo Cee Government Spending — 5. mo Nevof Interest Se 3 Gross Investment $$$ 1,00 sy Companys profit sn 3. Private company Income OO > Indirect taxes minus subsidy ae 1 Dividend ae wi et Transfer Payment 3/5624 3 <1 Interest on government and consumer loans 674.0 Net factor income from: outside the country— 234,00 Personal Income Tax, 3,321.00 Based on the information above, calculate : a. Gross Domestic Product in current price ~ eve « C+ lL + G+ NK + NG S0e + 4,695 + 5, baM + aun = M3. 933 Jams « b. Gross National Product in current price + GNP = GOP + ned “factor income Grom uMRSe = asa + Gad = WADE AAR wilt. ¥ ¢. National Income + wrseno\ \neome = AW Anteme fam govrn Nationa) eaasiaaer jncawe, B22 = By uta Ca te SAAN AS ens) 4“Personal tncome Fernenay tame © Nose + ant 4 aout Vises BN Sure of Intome Lhowuinerd) os. + ews + Gacy 9 sacar 79,88 > oy PNAS O26 mie, ©. Disposable Income: ; peEsAaN Wmesone = wmeama Yores ee = 33,220 - 3,391 seueme, FADE, AOD gay |