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

11. Two markets in a simple circular flow of macroeconomics? A. Households and firms

B. Products and resources

C. Capital goods and consumer goods

D. all of the above

12. These are all conventional macroeconomics objectives except......... A. full employment

B. price stability

C. extremely high economic growth

D. equitable distribution of income

13. Macroeconomics theory studies the following except how ... A. to determine international trade activities

B. to determine equilibrium income in an economy

C. to determine the unemployment and inflation

D. to determine the type ,quantity of goods to produce.

14. Government policies regarding taxes and expenditure are called ......... A. fiscal policies

B. growth policies

C. monetary policies

D. supply side policies.

15. The branch of economics that examines the functioning of individual industries and the behaviour of individual decision making units are

A. macroeconomics

B. microeconomics

C. positive economics D. normative economics

16. Which of the following would not be considered a macroeconomic question? A. Why do some economies grow faster than do others?

B. What factors determine the price of computers?

C. What are the factors that determine unemployment?

D. How does the exchange rate affect international trade?