Inflation and Nominal Wage Level
Practice for Midterm # 1
Difficulty # one particular
" When the price of your resource utilized to produce a product increases, the firm increases its source, therefore switching the supply shape rightward. " Is this assertion true or perhaps false? Describe your solution. Problem # 2
Suppose the market to get running shoes is at equilibrium. Then a supply of running shoes decreases. How it changes the price and quantity of jogging shoes? What elements might be the cause of the decrease in supply? Trouble # several
The table above provides the demand and provide schedules to get CDs. a. According to the table, what is the equilibrium selling price?
b. Imagine the government imposes a price floor of $16 for a CD. What is the end result? c. Suppose the government imposes a price limit of $8 for a DISC. What is the end result? Problem # 4
Should you sell the textbook on your friend this season, does the sale count in this kind of year's GDP? Problem # 5
Assume a small region has the pursuing statistics: its consumption expenses is $15 million, investment is $2 million, govt expenditures upon goods and services can be $1 million, exports of goods and services to foreigners is usually $1 million, and imports of goods and companies from and also the is $1. 5 , 000, 000. Calculate this nation's GROSS DOMESTIC PRODUCT. Problem # 6
The table over gives data on the creation and prices in a small economy. Work with 2006 while the base period. a. Exactly what does nominal GDP equal in 2006?
b. How much does real GROSS DOMESTIC PRODUCT equal in 2006?
c. How much does nominal GDP equal in 2007?
d. Using the chained-price method, exactly what does real GROSS DOMESTIC PRODUCT equal in 2007? Trouble # several
The stand above shows real and nominal GDP for two years.
a. What really does the GDP deflator equal 5 years ago? What does the benefit of the GROSS DOMESTIC PRODUCT deflator inform you of 2006? m. What does the GDP deflator the same in 3 years ago?
Problem # almost 8
" In the event country A has a level of00 real GROSS DOMESTIC PRODUCT per person than country M, then people in Region A must enjoy a higher quality lifestyle than people in Country B. " Is this declaration true...