In 2000 in Woodland, there are three residents: The Lumberjack, The Woodworker, and The Farmer. Use the following (i)-(v) to answer partsa-f.

(i) The farmer grows $8,500 worth of carrots. She sells $5,500 worth of carrots to the residents of Woodland and exports $3,000 worth of carrots to Metalland

(ii)The Lumberjack cuts down $5,000 worth of lumber which she sells to the Woodworker for $5,000.

(iii) The Woodworker uses the $5,000 worth of lumber to make $15,000 worth of furniture. $8,000 worth of the furniture is sold to residents of Woodland and $7,000 worth of the furniture is exported to Metalland.

(iv) The Farmer, the Lumberjack, and the Woodworker each pay $500 in taxes to the government, which then pays the Lumberjack $1,000 to build a road.

(v) The Farmer wants to expand her business: She purchases a $2,000 shed from Metalland and pays the Lumberjack $1,000 to assembleit.

Please answer the following questions:

1. What is total consumption (personal expenditures) in Woodland?
2. What is total business investment in Woodland?
3. What are total government expenditures in Woodland?
4. What are total exports in Woodland?
5. What are total imports Woodland?

The economy is initially at the full-employment level of output: but then there is a decrease in consumer sentiment (consumers start spending less). If theFederalReserve wants tostabilize output, then they should

a.Engage in expansionary Monetary Policy

b.Decrease Government Spending

c.Engage in ContractionaryMonetary Policy

d.Increase Government Spending

e.Make no changes to Monetary Policy

The economy is initiallyat the full-employment level of output:thenthere is a negative supply shock.IfThe Federal Reserve wants to stabilize inflation,thenThe Federal Reserve should

a.Engage in expansionary Monetary Policy

b.Engage in ContractionaryMonetary Policy

c.Make no changes to Monetary Policy

d.Increase Government Spending

e.Decrease Government Spending