Econ104 - Study guides, Class notes & Summaries

ECON104 Goffe Final Exam (Questions and Correct Answers 100% Verified)

Darryl's profit from selling dried apricots is: Fannie’s profit from selling fresh apricots is: Use the income approach to calculate nominal GDP. Fill in the blanks in the table below. Enter numbers with no commas, no dollar signs and no decimals. For example, if your answer is $12,000 you would enter 12000 into the appropriate box. Now let’s use the expenditure approach to calculate nominal GDP. So here we will add up all consumer spending on FINAL goods in this economy. Remember that th...

Consider the following model i) C = 1500 mpc (Y - tY) ii) I = 800 iii) G = 500 iv) X - M = 500 - mpi (Y) where: t = the (flat) tax rate mpc = the marginal propensity to consume mpi = the marginal propensity to import suppose mpc = .80, t = .25, mpi = .2 Given the information above, solve for the equilibrium output: We know that the formula for the (government) spending multiplier is 1/(1-mpc(1-t) mpi). The value of the government spending multiplier in this problem is: Round to 2 decimal pl...