5. Suppose that you have the following information for an economy. GDP = $1000, C = $800, G = $100, X = $50, IM = $30, T = $50, and TR = $20 a) What is investment in this economy? Investment:_____________________________ b) What is private savings? Private Savings:_________________________ c) What is government savings? Government Savings:_________________________ d) What is the capital inflow in this economy? Capital inflow:_________________

6. The following T-account shows the assets and liabilities of all banks in Canada. The reserve ratio is 10%. All financial transactions occur within the banking system. No one holds cash. Actual reserves $200 million Deposits $1000 million Loans $700 million Bonds $100 million

a) What is the amount of total desired reserves? What is the amount of excess reserves? Required Reserves:_______________ Excess Reserves:__________________ b) What will be the final T-account after all of the excess reserves are loaned out? Assets Liabilities Actual reserves Deposits Loans Bonds c) After all the multiplier processes have taken place, what will be the change in money supply? Change in MS_____________________

7. Which of the following transactions will be included in the GDP for the 2018 US? What category would they go into? Yes or No Category

a. A 1962 Camero sold to a collector in February 2018 ______ ___________

b. A tractor produced by John Deere in May 2018 and sold to a farmer in September 2018 ______ ___________

c. A Toyota produced in Kentucky in 2015 but sold to a customer in March 2019 ______ ___________

d. A set of tires produced by Goodyear in 2018 and sold to Chrysler to be put on a 2018 Chrysler 300. ______ ___________

e. Tax services provided by internal revenue services to a customer in April 2018. ______ ___________

8.Using the table, calculate the unemployment rate. In Millions

Civilian population 210

People incapable of working 50

People not looking for work 60

Employed workers 95

Unemployment Rate: _________________________________________