question 1) Ryan is a Canadian resident who lives with his family in Victoria, Canada, but works for a small donut cafe in Seattle, U.S., where he commutes every day. On a typical day, Ryan produces 800 donuts that sell for $ 3 apiece. Of the revenue from selling the donuts, Ryan is paid $ 1,560 per day. The remaining $ 840 revenue is distributed as follows: $ 210 pays for inputs such as water, flour, sugar, butter, and energy, $ 420 is rent for using the facilities and interest for an initial loan to start the business, and $ 210 goes to salary to the manager and profit to the owner of the caf.

a) How much is the increase in U.S. GDP generated by the production of the 800 donuts?

- my answer 2400

b) How much is the increase in U.S. GNP generated by the production of the 800 donuts?

my answer 760

c) How much is the increase in Canada's GDP generated by the production of the 800 donuts?

d) How much is the increase in Canada's GNP generated by the production of the 800 donuts?

question 2) Suppose the market for landscape workers in Kitchener, Ontario, can be described by the following labour demand and supply equations: LD = 850 - 10 w and LS = 125 + 15 w.

Calculate the equilibrium wage and employment in this market.

equilibrium wage my answer = 29

equilibrium employment my answer = 560

Suppose the local government passes a bill requiring all employers in this industry to provide bottled water to each worker to protect them from hot weather. This has been estimated to cost employers $ 2 per worker per hour. This way, workers do not need to purchase water by themselves, so that the bill effectively increases the wage by $ 2 per hour.

Calculate the new equilibrium wage and employment.

question 3) The velocity of money in the small Republic of Sloagia is always the same. Last year, the money supply was $ 7 billion and the real GDP was $ 11 billion.

This year, the money supply increased by 6 percent, real GDP by 2.1 percent, and nominal GDP is $ 17 billion.

Calculate the velocity of money

The price level last year,

The Price level this year

The inflation rate.