Principles of Macroeconomics
Principles of Macroeconomics ECO 2013
University of Central Florida
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This 3 page Study Guide was uploaded by Toy Kertzmann on Thursday October 22, 2015. The Study Guide belongs to ECO 2013 at University of Central Florida taught by Robert Pennington in Fall. Since its upload, it has received 38 views. For similar materials see /class/227635/eco-2013-university-of-central-florida in Economcs at University of Central Florida.
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Date Created: 10/22/15
manufacturers What ls value ofthe mvestment eomponent of GDP7 1 0 bllllon valuable goods and servrees are bought and soldm markets m u m umlu ttr ll th t Margmal Co Margmal Bene t l u u 1 300000 are soldto busmesses wd 0 8 bllllon Bo sBarbersh L A m wth r nm The Ifthe year 2000 ls the base year whatwas Bob s conmbutlon to real GDP m the year 20017 21700 TM l lr khwd whlch ls 0 hr Shuss Pants PEvHuuv FErHuuv 2 Jenny 3 every 4 3 W 133 pans of shoes data7 Demand eonstant and an merease m suggly Tn 000 m h r Ecol purehased and251 9 Tu nn PlutF u nul125 1990 and 2000 If the CPI equaled 1 30 m 1990 1 69 w 000 meome of agrreultural workers m 19907 27 472 angloyed real rmmmum wage GDP perperson rn Alpha tonal 8 000 m m 1ah r w 1111111 11 outputper 1 h w Real on mmrm n n1 16 years or older are not 15 pemmt The nommal pnce of gasolme rrrcrease and the real pnce ofgasolme decrease amm r r OLhcA ra r r 11 rarrr Y 1w w r 7 percent h a 9 1n Y a r potmual output r r r E 1 000 9 WhmF d m1 decrease The most mportanLLool of moneer pohcy rs ggen market aauons r r mvestment In Okunland a country that operates according to Okun39s law potential GDP equals 8000 billion the actual rate of unemployment is 8 percent and the natural unemployment rate is 5 percent What is real GDP in Okunland 7 520 billion In Macroland potential output equals 100 trillion and the natural rate of unemployment is 4 percent If the actual unemployment rate is 5 percent then the output gap equals 2 trillion When actual investment is greater than planned investment firms sold less output than expected In Macroland currency held by the public is 2000 econs bank reserves are 300 econs and the desired reservedeposit ratio is 10 If the Central Bank prints an additional 200 econs and uses this new currency to buy government bonds from the public the money supply in Macroland will increase from 5 000 econs to 7 000 econs assuming that the public does not wish to change the amount of currency it holds Dave39s Mirror Company expects to sell 1000000 worth ofmirror and to produce 1250000 worth ofmirrors in the coming year The company purchases 300000 of new equipment during the year Sales for the year turn out to be 1000000 Actual investment by Dave39s Mirror Company equals 550 000 and planned investment equals 550 000 According to the quantity equation if velocity and output are constant then an increase in the money supply leads to the same percentage increase in in ation
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