e. Which price index rises faster, the GDP deflator (Paasche) index or the fixed-weight index (Laspeyres) index 1 Question 3 (20 marks) . . Suppose that an economy’s production function is = . a. What fractions of income do capital and labor receive?
When government spending is increased, the amount of the increase in aggregate demand primarily depends on: A. The average propensity to consume B. The size of the multiplier C. Income taxes D. Exchange rates 5. Which fiscal policy would be the most expansionary? A.
? How does systematic risk differ from unsystematic risk? What is meant by the Capital Asset Pricing Model? Describe how it relates to expected return and risk. Find the real return on the following investments: Stock Nominal Return Inflation A 10% 3% B 15% 8% C -5% 2% ?
b. May 1, 2010, the company paid $40,000 cash to purchase two trucks. The trucks’ useful life is 10 years. Medford uses
ECO 372 Final Exam [pic] 1. News Story: Workers at a car-manufacturing plant in Flint, Michigan are laid off because the economy is weak and GM cars aren't selling well. GM isn't sure when the plant will reopen. What type of unemployment describes the workers' situation? ▪ Frictional unemployment ▪ Structural unemployment ▪ Full unemployment ▪ Cyclical unemployment 2.
1; Why Study Money and Monetary Policy) Part II Financial Markets 1. Why Study … (Ch. 1 up to: Why Study Money and Monetary Policy) 2. An Overview … (Ch.2 up to: Function of Financial Intermediates: Indirect Finance) 3. Understanding Interest Rates (Ch.
ECO 372 FINAL EXAM 1. Consider if the government instituted a 10% income tax surcharge. In terms of the AS/AD model this change should have a. shifted the AD curve to the left b. shifted the AD curve to the right c. made the AD curve flatter d. made AD curve steeper 2. If the depreciation of a country’s currency increases it aggregate expenditures by 20, the AD curve will a. shift right by more than 20 b. shift right by less than 20 c. shift right by exactly 20 d. not shift at all 3. Suppose that consumer spending is expected to decrease in the near future.
a rise in the equilibrium output. a fall in the equilibrium output. Question 10 Let the marginal product of capital (MPK ) be 6; the marginal product of labor (MPL) be 2; the price of labor is given by $10. What will be the price of capital such that the isocost and the isoquant are tangent to each other? $30 $3 $60 $6 Question 11 Which of the following is a property of an isoquant?
a rise in the equilibrium output. a fall in the equilibrium output. Question 10 Let the marginal product of capital (MPK ) be 6; the marginal product of labor (MPL) be 2; the price of labor is given by $10. What will be the price of capital such that the isocost and the isoquant are tangent to each other? $30 $3 $60 $6 Question 11 Which of the following is a property of an isoquant?
Introduction The Federal Reserve makes many decisions which can alter the course an economy takes. The Reserve has quite a bit of influence on how an economy recovers from both recessions and rising inflation due to extreme growth. A closer look will be made at the importance and function of money and how the central bank manages a nation’s monetary system. An explanation will be made to show what effects the Federal Reserve’s monetary policy has on the economy’s production and employment. Finally, a look inside the most recent Chairman’s Report will explain what direction the Reserve has decided to move in regards to monetary policy.