Class+3 - Question 2. A. What is the primary determinant of...

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Econ 100B - Fall 2009 Handout for Tuesday, Sept 8 Prof: Martha Olney, GSI: Victoria Vanasco 1 MIDTERM EXAMINATION #1 (Spring 2003) Question 1. A. In 2001, Kate bought a $600 piece of U.S. manufactured furniture and charged it to her credit card. She paid o/ her credit card balance in full in 2002. Why is her purchase recorded in consumption spending in 2001 even though it is not paid for until 2002? 2 MIDTERM EXAMINATION #1 (Spring 2002) Question 1. A. Give one example of an activity that many people think is &In- vestment±but which is not counted as Investment Spending (I) by an economist. B. Give one example of an activity you have undertaken in the last indicate whether the activity is a U.S. import or U.S. export. C. Give one example of an activity that some people might think is &government spending±but which is not counted as Government Pur- chases (G) by an economist.
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Unformatted text preview: Question 2. A. What is the primary determinant of consumption spending? Give an example of a consumption function. B. Consumer condence a measure of how good consumers ex-pect the economy to be in the future declined in February. All else constant, what e/ect should the decline in consumer condence have on consumption spending? What e/ect should it have on household saving? Explain. 3 MIDTERM EXAMINATION #1 (Fall 2001) 1. After the September 11 attack, thousands of passengers cancelled already-booked airline tickets and tens of thousands more cancelled plans to purchase airline tickets in the next few months. All of the major airlines announced ight cancellations and layo/s of airline employees. 1 Boeing, a manufacturer of airplanes, also announced layo/s. Are the lay-o/s at Boeing a &multiplier e/ectof the cancellations of airline travel? Explain. 2...
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Class+3 - Question 2. A. What is the primary determinant of...

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