attached is the formula sheet to the questions!
QuEsnou 1 Suppose a country's private saving is 45 million dollars, its government decit is 6 million dollars, and purchases of new plant and equipment (I) is 65 million dollars. The country starts the year with physical capital stock of 700 million dollars and 4% of it depreciates over the year during the production process. The fraction of new plant and equipment financed by foreign saving is _ _% and the country starts the following year with a physical capital stock equal to_ _ million dollars. Record your answer without a percent sign and without a dollar sign. For example, if you nd that 45.5% of investment spending I is nanced by foreign saving, record your answer as 45.5; if you find the new physical capital stock is $407.6 million, record your answer as 407.6 QUESTION 2 "The market price of a one-year Treasury bond with a face value of $1,000 fell $8.75. The band's yield rose from 4.50% to approximately_%.\" Record your answer without a percentage sign and round to the nearest 2 decimal points. For example, if your answer is 3.5639%, record your answer as 3.56. Ifyour answer is 2.856496, record your answer as 2.86 General Terms and Equations GNP = GDP + Net Factor Income from Prices E-Rate: (#Emplab. Force) x 100. Abroad GDP: Gross Domestic Product GDP Deflator: E-Rate + U-Rate = 1 SP: Private Saving = Y - C - T Nominal GDP/Real GDP) x 100 GNP: Gross National Product Types of Unemployment: (F) Frictional, SG: Government Saving. This is Chain-Weighting: A method of averaging (S) Structural, (Inst) Institutional, (Cy) GNP = GDP + Net Factor Income Earned - the government deficit = T-G changes in quantity or prices. Cyclical Abroad. S: National Saving: Private Saving + Suppose we are looking at the change NRU: Natural Rate of Unemployment: Nominal GDP or GNP: Final Goods and Government Saving. between 2018 and 2019: Rate of employment associated with F, S, Services evaluated at Current Dollar Prices. S = SP + SG = Y - C-G and Inst. Unemployment Chain-Weighted Price: Real GDP or GNP: Final Goods and Full employment: Level of employment Services Evaluated at Base Year Prices (Old T: Tax revenue Way) or Averaged Prices (New Way) G -T: Government Deficit P2019 X Q2018. P2018 X Q2018 1 ) 2 ( P2019 X Q2019 associated with the natural rate of P2018 X Q2019 unemployment Y: Refers to GDP or GNP (output or Government Multiplier: AY/AG Chain-Weighted Quantity Cyclical Unemployment: Unemployment income) due to business cycle effects. CA = EX - IM + Net Factor Income Earned Frictional Unemployment: Associated w/ fact Disposable Income: Income - Taxes, or Abroad (this includes net wages and interest (P2018 X Q2019 Y-T earned). P2018 X Q2018 1 ) ( P2019 X Q2019 - 1 ) that people are unemployed betw. jobs. P2019 X Q2018 Structural Unemployment; Refers to due to C: Consumer spending on services and CA = S - I unemployment due to industry decline or skill nondurable final goods CA + KA = 0 GDP Deflator: obsolescence. (Nominal GDP/Real GDP) x 100 [: Investment (Firm purchases on plant and CA: Current Account; represents the Institutional Unemployment: equipment, inventories, and consumer A Net Int'l Asset Position. When CA
