1a, Increasing labor force means supply of labor shifts to the right and the equilibrium wage goes down.
1b. Capital stock decreases as supply of labor is directly affected; supply shifts to the left and equilibrium
rental price goes up.
Place each of the following transactions in one of the four component of expenditure:
Investment (Inventory Investment)
1950 (% rounded to
This version: 02/05/2015
Problem Set 1
Econ 362 Spring 2015
Due Feb 18th 2015
1. You are given the following information about an economy:
Gross private domestic investment = 35
Government purchase of goods and services = 30
Gross national product (GNP) =