1) Suppose that in your first year of college you spend $30,500.00 more than you earn. In your second year, your expenses increase a bit, leading you to spend $31,200.00 more than you earn. This gap goes to $31,610.00 in your third year of college, then falls a bit to $31,610.00 in your fourth and final year. What is your deficit in your third year of college? $ How much debt do you have that year? $

5) Assume that originally U.S. GDP is $10trillion, but that the economy is closed and there are no imports or exports. The nation of Neverlandbegins selling high-quality washing machinesin the United States but charges a very low price?say, $40each. Assume that U.S. consumers use this opportunity to buywashing machinesfrom Neverlandinsteadof U.S.-produced washing machines, and that spending on other U.S. goods does not change.

What happens to U.S. GDP going forward?

6)Suppose the economy is in a recession. The economy needs to expand by at least $400billion, and the marginal propensity to consume is 0.6. What is the least amount the government can spend to overcome the $400billion gap? $ billion

7) Use the information in the table below to answer the following two questions.

Items	Billions of $
Savings deposits	7000
Money market mutual funds	700
M2	13700
Checking deposits	2250
Small time deposits	750

How much is M1? $

Now, calculate the amount of currency in billions of dollars in the economy from the given information (assume no traveler's checks). $

15) Germany and South Koreaboth produce cars and televisions. The table below lists production possibilities per worker in each country (e.g., one worker in Germany produces 15 cars or 30 televisions).

	labor force	cars	televisions
Germany	200	15	30
South Korea	200	20	20

Assume that Germany andSouth Koreaproduce their own cars andtelevisions, and they allocate half their labor force to the production of each. a. What will Germany produce? b. What willSouth Koreaproduce?

Now suppose that Germany andSouth Koreaproduce only the good for which they enjoy a comparative advantage in production. They also agree to trade half of their output for half of what the other country produces. a. Which nation specializes in which good? b. After trading, what is the most that each country is able to consume?

19) Using the 2019 marginal tax rates provided in the table below, find the marginal and average tax rates for the incomes shown. Give all answers to two decimals.

Taxable Income Tax rate $0-$9,700 10% $9.701-$39 475 12 $39.476-$84,200 22 $84,201-160,725 24 $160726-$204,100 32 $204,101-$510 300 35 Over $510.300 37