Exam 2 Review

Exam 2 Review - Review 2 Q1) Suppose you borrow $22,000...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Review 2
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
Q1) Suppose you borrow $22,000 that has to be re-paid in a years time. If the nominal interest rate is 8% and the inflation rate is 2%, the nominal amount repaid is ________, while the real amount repaid is______________? A) $23760, $22440 B) $22440, $23760 C) $20370, $20755 D) $20755, $20370 E) $23760, $23320
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Year Nominal GDP Price Index 2005 $200 80 2006 $220 90 2007 $240 95 2008 $260 98 Q2) Using the table above. What is the value of Real GDP in 2006 using 2008 as the base year? A) $82.92 B) $239.56 C) $202.04 D) $76.15 E) Not enough information
Background image of page 4
Q3) Using the table above what is profit? A) $1003 B) $1421 C) $2001 D) $356 E) None of the above. GDP $20,000 Capital consumption $5245 Wages $11223 Net factor income from abroad $290 Rent $256 Profit ???? Interest $687 Indirect Business taxes $878
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Q4) Using the table above, what is the yearly growth rate in nominal GDP in 2006? A) 74% B) 105% C) 125% Year Price of apples Quantity of apples Price of butter Quantity of butter Price of Guns Quantity of Guns 2005 $2.00 20 $1.20 5 $10.00 2 2006 $2.50 22 $2.00 10 $20.00 3 2007 $3.00 24 $2.80 20 $30.00 4 2008 $4.00 26 $3.60 30 $40.00 5
Background image of page 6
Q5) Using the table above what is the value of Real GDP in the year 2006 if 2007 is the base year? A) $3,200 B) $12,600 C) $7,150 D) $4,200 E) None of the above. Year Price of  Oil Quantity  of Oil Price of  Butter Quantity  of butter Price of  Guns Quantity  of guns 2005 $4 100 $1 50 $2 200 2006 $10 150 $1 100 $4 400 2007 $25 300 $2 150 $8 600
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Q6). Suppose last year the exchange rate was $1 : £2,
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/03/2010 for the course ECN 211 taught by Professor Kingston during the Spring '08 term at ASU.

Page1 / 22

Exam 2 Review - Review 2 Q1) Suppose you borrow $22,000...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online