Econimics Questionnaire

Name Registration Number Program Total Marks 20 Weight 5% . Qs. 1 a. wherefore do economists complicate only final goods in measuring GDP for a particular year? wherefore dont they include the order of the stocks and bonds bought and sold? Why dont they include the value of the used furniture bought and sold? 4 b. What are the four phases of the business cycle? 3 Qs. 2 Recent figures showed the CPI at 210. , while ane year in front it was 202. 2. 3 a. What was the rate of inflation over the previous year? b. At this rate of inflation, approximately how long will it take for the price take aim to double? Qs. 3 A hypothetical economys consumption schedule is given in the table below. GDP=DI C 6600 6680 6800 6840 7000 7000 7200 7160 7400 7320 7600 7480 7800 7640 8000 7800 Use the information to answer the next 5 a. If disposable income were $7400, how ofttimes would be saved? b. What is the break-even level of disposable income? . What is this economys marginal propensity to co nsume? d. What is the average propensity to consume when disposable income is $7000? When disposable income is $8000? Qs. 4 a. Suppose a $100 increase in desired investment spending ultimately results in a $300 increase in realistic GDP. What is the size of the multiplier factor? 1 b. If the MPS is . 4, what is the multiplier? 1 c. If the MPC is . 75, what is the multiplier? 1 d. Suppose investment spending initially increases by $50 billion in an economy whose MPC is 2/3. By how oftentimes will this ultimately change real GDP? 2Econimics QuestionnaireName Registration Number Program Total Marks 20 Weight 5% . Qs. 1 a. Why do economists include only final goods in measuring GDP for a particular year? Why dont they include the value of the stocks and bonds bought and sold? Why dont they include the value of the used furniture bought and sold? 4 b. What are the four phases of the business cycle? 3 Qs. 2 Recent figures showed the CPI at 210. , while one year earlier it was 202. 2. 3 a. What was the rate of inflation over the previous year? b. At this rate of inflation, approximately how long will it take for the price level to double? Qs. 3 A hypothetical economys consumption schedule is given in the table below. GDP=DI C 6600 6680 6800 6840 7000 7000 7200 7160 7400 7320 7600 7480 7800 7640 8000 7800 Use the information to answer the following 5 a. If disposable income were $7400, how much would be saved? b. What is the break-even level of disposable income? . What is this economys marginal propensity to consume? d. What is the average propensity to consume when disposable income is $7000? When disposable income is $8000? Qs. 4 a. Suppose a $100 increase in desired investment spending ultimately results in a $300 increase in real GDP. What is the size of the multiplier? 1 b. If the MPS is . 4, what is the multiplier? 1 c. If the MPC is . 75, what is the multiplier? 1 d. Suppose investment spending initially increases by $50 billion in an economy whose MPC is 2 /3. By how much will this ultimately change real GDP? 2