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Unformatted text preview: Eonomics 302 Spring 2005 Answers to Practice Questions 5 on Chapter 5 Multiple Choice Answers: 1. e. 2. e. 3. f. 4. a. 5. f. 6. b. and e. 7. d. 8. f. 9. c. 10. d. 11. e. 12. d. 13. d. 14. c. 15. e. 16. g. Problems: 1. This problem consists of five different steps. a. Complete the following table. Sector Expenditures on Goods and Services Produced Domestically Expenditures on Goods and Services Produced Internationally Total Expenditures Domestic Households C d =2200 C f = 300 C = 2500 Domestic Businesses I d = 500 I f = 300 I = 800 Domestic Government G d = 600 G f =200 G = 800 TOTAL 3300 800 4100 b. Using the date you calculated in (a), fill in the following table for this economy. Assume exports in this economy equal $0. Y C I G Exports Imports 3300 2500 800 800 800 c. Calculate the production in this economy by filling in the following table. Does the value of Y in (b) equal the value of Y in (c)? (It should: if it doesn’t, you’ve made an error.) C d I d G d Exports Y 2200 500 600 3300 d. Complete the following table....
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This note was uploaded on 08/08/2008 for the course ECON 302 taught by Professor Gold during the Spring '07 term at University of Wisconsin.
- Spring '07