ps3key - Economics 102: Kelly Fall 1999 Homework #3 Due...

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Economics 102: Kelly Student Name: Fall 1999 ID#: Homework #3 T.A. Name: Due Oct. 26 at large lecture Sec code: Part I Question 1. The following data gives a complete picture of the household, business, government and foreign sectors for country Zerbia for the year 1998. (All figures are in billion dollars.) Consumption spending 100 Government transfer payments 10 Government expenditures on goods and services 50 Imports 20 Exports 10 Capital Stock (end of 1997) 200 Capital Stock (end of 1998) 208 Depreciation rate 6% Interest Rate 10% Total Taxes 20 a. How many units of capital wore out during the course of 1998? (1 point) Answer: 12 billion b. What was the total amount of investment that occurred in 1998 including expenditures on the replacement of worn out capital? (1 point) Answer: 20 billion c. What is the value of GDP for this economy in 1998? (1 point) Answer: 160 billion d. What is the value of savings for this economy? (1 point) Answer: 50 billion e. With a macro model that includes a foreign sector we can think of leakages as being equal to S + T + M and injections as being equal to I + G + X. Are leakages equal to injections for this
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This note was uploaded on 08/08/2008 for the course ECON 102 taught by Professor Drozd during the Spring '08 term at Wisconsin.

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ps3key - Economics 102: Kelly Fall 1999 Homework #3 Due...

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