Econimics Questionnaire

induce Registration Number class Total Marks 20 Weight 5% . Qs. 1 a. wherefore do economists take on only final goods in measuring GDP for a particular year? Why dont they include the value of the stocks and bonds bought and sold? Why dont they include the value of the used piece of furniture bought and sold? 4 b. What are the foursome phases of the business cycle? 3 Qs. 2 fresh figures showed the CPI at 210. , succession one year earlier it was 202. 2. 3 a. What was the yard of inflation over the foregoing year? b. At this rate of inflation, almost how long will it production for the price level to double? Qs. 3 A hypothetical economys consumption schedule is given in the carry over below. GDP=DI C 6600 6680 6800 6840 7000 7000 7200 7160 7400 7320 7600 7480 7800 7640 8000 7800 part the information to answer the following 5 a. If fluid income were $7400, how much would be protected? b. What is the break-even level of disposable income? . What is this economys marginal appetency to consume? d. What is the average proclivity to consume when disposable income is $7000? When disposable income is $8000? Qs. 4 a. allege a $ coke increase in desired investment spending ultimately results in a $300 increase in real GDP. What is the size of the multiplier factor? 1 b. If the MPS is . 4, what is the multiplier? 1 c. If the MPC is . 75, what is the multiplier? 1 d. Suppose investment spending initially increases by $50 billion in an economy whose MPC is 2/3. By how much will this ultimately counterchange real GDP? 2Econimics QuestionnaireName Registration Number Program Total Marks 20 Weight 5% . Qs. 1 a. Why do economists include only final goods in measuring GDP for a particular year? Why dont they include the value of the stocks and bonds bought and sold? Why dont they include the value of the used furniture bought and sold? 4 b. What are the four phases of the business cycle? 3 Qs. 2 Recent figures showed the CPI at 210. , while one year earlier it was 202. 2. 3 a. What was the rate of inflation over the previous year? b. At this rate of inflation, approximately how long will it take for the price level to double? Qs. 3 A hypothetical economys consumption schedule is given in the table below. GDP=DI C 6600 6680 6800 6840 7000 7000 7200 7160 7400 7320 7600 7480 7800 7640 8000 7800 Use the information to answer the following 5 a. If disposable income were $7400, how much would be saved? b. What is the break-even level of disposable income? . What is this economys marginal propensity to consume? d. What is the average propensity to consume when disposable income is $7000? When disposable income is $8000? Qs. 4 a. Suppose a $100 increase in desired investment spending ultimately results in a $300 increase in real GDP. What is the size of the multiplier? 1 b. If the MPS is . 4, what is the multiplier? 1 c. If the MPC is . 75, what is the multiplier? 1 d. Suppose investment spending initially increases by $50 billion in an econom y whose MPC is 2/3. By how much will this ultimately change real GDP? 2