1.if the relative price of one unit of good x is 5 units of good y, then it follows that the absolute price of good x can be _ and the absolute price of good y can be

2.If the MPC is 0.75 and investment spending increased by $20 billion, then the increase in GDP will be $

3.Assume you are an economist working on the President's Council of Economic Advisors. The President wants the U.S. GDP to increase by $160 billion. If the MPC is 0.80, to reach the President's goal government spending must increase by

4.Consider this equation for M2 GDP = PQ = MV?

What is P?

List some of the things that make it change

What is V?

How does it change?

5.In GDP how do you get the sectorial shares

6.What will be the challenges in the future when economy tries to reduce social inequality and ensure equal distribution of wealth

7.Are economic crisis caused by financial crises. Explain

8.How do gains in the labor productivity lead to gains in GDP per capita

9.Why should economists use GDP to measure standards of living

10.Consider the depreciation of a $5,000 asset with $0 salvage value using both the Straight Line and SOYD depreciation methods. Assume a 5-year depreciable life. Develop the complete depreciation schedules for the asset showing year-by-year depreciation charges and book values. What is the total present worth of the lifetime depreciation charges for each method? Use an interest rate of 8% per year.