Question
Given: GDP :Y = C + I + G + NX or Y = C + I + G + X -M 1. Heidi pays
Given:GDP :Y = C + I + G + NX or Y = C + I + G + X -M
1. Heidi pays Manuel Php 50.00 for cutting her hair.
Consumption rises by Php 50.00
GDP ___________ by Php 50.00
Rises
Falls
Do not change
None of the above
2. Heidy marries Manuel and cuts her hair for free
Consumption falls by Php 50.00
GDP ___________by Php 50.00
Rises
Falls
Do not change
None of the above
3. Ervin the baker buys Php 100 bag of flour as an intermediate good.
GDP ___________by Php 100.00
Rises
Falls
Do not change
None of the above
4. I bought a Php 100 bag of flour to bake cookies at home.
Consumption rises by Php 100.00
GDP ___________by Php 100.00
Rises
Falls
Do not change
None of the above
5. You spend a Php 780,000.00 for new Toyota car built in Philippines.
Consumption rises by Php 780,000.00
GDP ___________by Php 780,000.00
Rises
Falls
Do not change
None of the above
6. You spend a Php 780,000.00 for new Toyota car built in Japan.
Consumption rises by Php 780,000.00
Net Exports fall by Php 780,000.00
GDP ___________by Php 780,000.00
Rises
Falls
Do not change
None of the above
7. You spend Php 280,000.00 for a used car.
GDP ___________by Php 280,000.00
Rises
Falls
Do not change
None of the above
8. Local or Philippine manufacturer company produced Php 1Billion worth of cars and sells them in Africa.
Net Exports rises by Php 1Billion
GDP ___________by Php 1Billion
Rises
Falls
Do not change
None of the above
9. Local or Philippine manufacturer company buys a Php 10 million worth of computer equipment made in Japan.
Investment rises by Php 10 million.
Net exports falls by Php 10 million.
GDP ___________by Php 10 million.
Rises
Falls
Do not change
None of the above
10. The Department of Defense buys Php 500 million of military equipment, manufactured in US.
Government purchases rise by Php 500 million.
GDP ___________by Php 500 million.
Rises
Falls
Do not change
None of the above
Please answer all parts of the question.
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
