Unit 1
If country A can make 2 cars and 10 trucks, and country B can make 2 cars and 6 trucks. Who has the comparative advantage for trucks?
Country A
There are 156 people in a city age 16+. Of the 156, 90 are employed, and 12 are unemployed. Determine the total amount of employed and unemployed.
102
Government spending, consumer spending, investment spending, and net exports
Annual inflation is expected to be 6%. The real interest rate is 2%. Determine the nominal interest rate
8%
How many Jerseys does Sawyer have?
12
If country A can make 2 cars and 10 trucks, and country B can make 2 cars and 6 trucks. Who has the comparative advantage for cars?
Country B
What is the formula used to find GDP using the expenditures approach?
C + I + G + Xm
What 4 factors connect with aggregate supply?
Taxes, input costs, technology, and government subsidies
You don't want to exceed a 4% real interest rate on your mortgage. The expected inflation rate is 1%. What is the highest nominal interest rate you'd be willing to pay?
5%
What are Clarks' kids names?
Mike and Cam
Last year 1 million tons of flour was sold at $50 per ton. This year 2 million tons of flour was sold at $50 per ton. How did supply & demand change from last year to this year?
Supply: Increase, Demand: Increase
What type of workers are not added to the total unemployment rate?
Discouraged workers
What is the formula to find the spending multiplier?
1/MPS
If the nominal interest rate is 8 percent and the expected inflation rate is 3.5 percent, what is the real interest rate?
4.5%
How many chewy granola bars does Fat Mansler eat in a day?
6 or 7
A very dry summer destroys most of the corn crop, which is a key input in the production of E-85 gasoline. The price & quantity of E-85 gasoline will change in which of the following ways?
Price will increase, and Quality will decrease
Who wins when the actual inflation rate exceeds the expected inflation rate on a loan? The lenders or the borrowers?
The borrowers
If there is an increase in military spending, what will happen to aggregate demand?
Aggregate demand will increase
IF the required reserve is .2, a $1 billion increase in ban reserves can lead to a maximum increase in the M1 money supply of what?
5 billion
Who is Tyler's barber?
Franklin
A new health report shows the benefits of consuming strawberries, such as better health. This report will cause which of the following shifts of supply & demand?
Supply won't change, Demand will increase
Given: Cyclical unemployment is 1,000, Frictional unemployment is 3,000, Structural unemployment is 2,000, Employed workers (full time) is 50,000, and the population 16+ is 60,000. What is the unemployment rate?
10.7%
You receive a $100 pay increase, and spend $80 of it. Calculate your MPC, and the spending multiplier.
MPC: .80 Spending Multiplier: 5
When the FED sells government bonds, the reserves of the banking system do what?
Decreases
What NFL team sucks the absolute most?
The Jacksonville Jaguars