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1. If real GDP for 2014 is $332,359 million and $348,954 million for 2018. Calculate the growth rate from year 2014 to 2018

2. If NI of a country with total population of 20 million is $500 million. Calculate Per capita income?

3. What is the equivalent in today's dollars of a $90,000 salary in 1965, CPI in 2018 / CPI in 1965 = 181.2/15.7

$90,000 salary in 1965 is equivalent to a $_________salary in 2018?

4. The deflationary gap in an economy is calculated to be $700 billion. The marginal propensity to save (MPS) is 0.1

The marginal propensity to import is (MPM) 0.15

The marginal rate of taxation is (MPT) 0.1.

By how much would the government need change its spending on goods and services to eliminate the deflationary gap?

5. How does CHANGE in PRICES effect your lives?

6. Explain why INFLATION usually accelerates during wartime?

Macroeconomics and the goals of Macroeconomic policy

7. Macroeconomics studies the economy from the point of view of .............. A. firms

B. households

C. the government

D. the entire economy

8. Which of the following is true about macroeconomics? A. The price of beef declined last week

B. The income of XYZ company workers has increased C. The unemployment rate was 3 percent last year

D. Production from ABC company increased by 5 percent.

9. The problem of inflation and central bank are A. topics in microeconomics

B. topics in macroeconomics

C. topics in capitalist economics

D. none of the above.

10. Which of the following is not the goal of macroeconomics? A. Price stability

B. Equitable distribution of income

C. High unemployment

D. Economic growth