Economics 101 - Fall 2015
Homework 1 Suggested Solutions
Why is it that the goals of policymaking, that is the criteria by which we assess policy, often conflict?
Equity and Efficiency: a policy that leads to efficiency often impacts peop
1 val ue:
The following table shows yearly real GDP data for France from 2006 to 2014, measured in billions of U.S. dollars.
a. For each year, identity which stage ofthe business cycle the real GDP data represent for France.
HOMEWORK WEEK 10
1. Determine which economic school of thought would be most likely to make each of the
a. The severity of the 20072009 recession, also known as the Great Recession, was mitigated by
the American Recovery and Reinvest
WEEK 2 - PUBLIC FINANCE
For each pair of goods, determine which one would have a relatively more elastic
Brand name shoes or all shoes - brand name
Ice cream or all frozen treats - ice cream
all chips or potato chips - potato chips
a price el
WEEK 1 - FUNDAMENTALS
When the marginal benefit equals the marginal cost, that stable level is an equilibrium level
Combinations beyond the production possibilities frontier are impossible to produce with the
current resources and technology
Macroeconomics, born during the great depression, grew from a need to understand the entire
economy and to provide guidance on how to manage it
The dollar value of a quota rent is equal to the size of the quota times the difference between
Economics 202 Homework Assignment # 1 Instructions: Please write your answers in the space provided for each question. Answers to short essays should be concise and to the point. If necessary, use a separate piece of paper for your computations. Make sure
WEEK 4 - BUSINESS CYCLES, UNEMPLOYMENT, AND INFLATION
if demand is elastic and the price rises, the quantity demanded falls a lot so
revenue will fall
if demand is inelastic and the price increases, the quantity demanded does not fall
a lot, so revenue w
WEEK 6 - AGGREGATE DEMAND AND SUPPLY
aggregate demand is a negative relationship between the price level and the quantity of real
GDP, or output, demanded.
aggregate demand is downward sloping.
Aggregate expenditures determine the level of real GDP.
GDP: A Measure of Total
Production and Income
<Define each component of GDP
Principles of Macroeconomics
5.1 GDP, INCOME, AND EXPENDITURE
Gross domestic product or GDP
ECON 2020: Principles of Macroeconomics
Review for Exam II
Date: October 26th, 2016
Time: 12:20 p.m. 1:25 p.m.
Duration: 1 hour and 5 minutes.
Classroom: Salazar Hall SH C137
Things you need to bring to the exam:
- green scantron
- Pencils, erasers
Principles of Macroeconomics
Dr. Samantha Carrington
For weeks that class is held on campus:
Tuesdays & Thursdays 3:00 to 4:20 pm
and by appointment.
For other weeks, questions will b
WEEK 5 - AGGREGATE EXPENDITURES MODEL
Because an inverse relationship exists between the price and the quantity demanded:
the price elasticity of demand is negative
Chronic unemployment challenged classical theories of labor markets during
The Great Depre
Productivity: the quantity of good and services produced from each unit of labor input
Productivitys key role in determining living standards is as true for nations
How productivity is determined?
Physical Capital per worker:
Physical capital: stock of eq
Income: money earned for doing work or received from personal investments
Wealth: value of accumulated assets
Assets: any item of economic value that can be converted into cash
Liability: a legal debt or financial obligation that must be paid back
Homework Assignment # 2
Instructions: Please write your answers in the space provided for each question. Answers
to short essays should be concise and to the point. If necessary, use a separate piece of
paper for your computations. Make sur
Time deposits - This is M2
Demand deposits - This is in both M1 and M2
Travelers checks - this is in both M1 and M2?
Money market mutual funds - this is in M2
The six-month certificate of deposit (CD) you bought in june that will mature in time to
WEEK 7 - FISCAL POLICY OVERVIEW ASSIGNMENT
When there are few substitutes for a good or service, demand tends to be relatively more
when the price of windbreakers is $30, consumers purchase 700 windbreakers in the market.
When the price of windb
WEEK 3 - MEASURING OUTPUT AND INCOME AND ECONOMIC GROWTH
Gross Private Consumption Expenditures(C)
Gross Private Investment (I)
Government Purchases (G)
Net Exports (X - M)
GDP = C + I + G +NX
NDP = GDP - total capital depreciation
we often simply call the federal reserve system the fed, whereas the feds is used as an
abbreviation for federal bureau of investigation (FBI) officers or for agents
Suppose the money market in the united states and the investment demand curve ar
Unemployment varies from country to country due to many different factors. The recent trend in Europe has been a
rise in unemployment from about 2 percent in the past to about 10 percent in some countries in the current years.
This stems from several reas