Econimics Questionnaire
Name: Registration Number: Program:
Total Marks: [20] Weight: 5%
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Qs.1 a. Why do economists include only final goods in measuring GDP for a particular year? Why don't they include the value of the stocks and bonds bought and sold? Why don't 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 210.7, 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 economy's 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? c. What is this economy's 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
Total Marks: [20] Weight: 5%
……………………………………………………………………………………………………………………………………….
Qs.1 a. Why do economists include only final goods in measuring GDP for a particular year? Why don't they include the value of the stocks and bonds bought and sold? Why don't 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 210.7, 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 economy's 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? c. What is this economy's 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