mid102-2010

mid102-2010 - Economics 102 Midterm Exam 1 - Winter 2010...

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Economics 102 Midterm Exam 1 - Winter 2010 Professor Lee Ohanian Answer all Questions Answer all questions. Full credit for a question requires complete derivations and/or explanation of your answer. would be higher? 6 points) (2) There are two goods, wine and cheese. The quantity of wine and cheese in year 1 is 10. The quantity of wine in year 2 is 11 and the quantity of cheese in year 2 is 8. The price of wine and cheese in year 1 is 1, and the price of wine in year 2 is 1, while the price of cheese in year 2 is 2. (6 points) Let the base year be year 1. Calculate nominal and real GDP in both year (3) Why are imports subtracted from GDP, while exports are added? (6 points) (4) An economy produces $40 of wine as the only ±nal good (GDP). In making wine, there is a grape grower who receives $15 for grapes, and there is
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This note was uploaded on 03/06/2010 for the course ECON 102 taught by Professor Serra during the Spring '08 term at UCLA.

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mid102-2010 - Economics 102 Midterm Exam 1 - Winter 2010...

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