EC102FinalNotes - FINAL Reviewoldmidterms

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FINAL Review old midterms New material is 50% - chapters 12,11,10,9,and half of 8 (skipped one, which one?) 2 nd  midterm 25% 1 st  midterm 25% REVIEW Real GDP:  as it increases, quantity of production must increase If nominal GDP is increasing at a faster rate, there is inflation If nominal GDP is decreasing, there is deflation When either real or nominal is deacreasing/increasing at a greater rate than the other  then there is either inflation or deflation Negative growth (when both real and nominal are both decreasing) = recession 1.) At an ATM, Mary withdraws $100 from her savings account, in the exact moment she  takes this action, which of the following statements about the us money aggregates is  correct? - M0 increases by $100 - M1 increases by $100 - M2 stays the same For the next 3 questions consider the following setup. Supposed a jar of orange marmalade  that is ultimately sold to a customer at the Corner Store is produced by the following  production process. Name of Company Revenues Cost of purchase Inputs
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Citrus Growers inc .75 0 Florida Jam Company2.00 .75 The Corner Store 2.50 2.00 Assume that: - The oranges were grown by Citrus Grower Inc in the year 2005 - The jam was produced by Florida Jams in the year 2005 - The Jam was sold by Florida Jams to the Corner Store - 2.) The contribution of these transactions to Consumption Expenditures © in years 2005  and 2006 is 0.00  and 2.50  respectively. 3.) The Contribution of these transaction to Investment Expenditures (I) in 2005 and 2006 is 
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EC102FinalNotes - FINAL Reviewoldmidterms

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