homework3spring2006

homework3spring2006 - Homework 3 Econ 102 Due March 9,2006...

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Econ 102 Due March 9,2006 Question 1: Use the following relationships to fill in the table below: GDP = C + I + G + (X – M) KI = M – X I = Private Saving + Government Saving + (M-X) I = NS + KI Government Saving = T – TR – G where GDP = gross domestic product C = Consumer spending I = Investment spending G = government spending X = exports M = imports KI = capital inflow NS = national saving T = taxes TR = transfers Year 1 Year 2 Year3 Year 4 GDP 890 7678 Consumption 720 7686 7689 Investment 98 1765 545 Gov Purchase 650 87 Gov Saving 54 Private Saving 32 758 National Saving 755 Transfer 885 456 543 Tax 150 1000 750 Export 10 76 66 Import 85 74 87 Capital Inflow 23 71 Question 2: Suppose that the demand for labor in Fantasyland is given by the equation w = 1000 – 2L while the supply of labor in Fantasyland is given by the equation w = 100 + 2L where w is the wage per year and L is the number of labor units hired per year. a.
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homework3spring2006 - Homework 3 Econ 102 Due March 9,2006...

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