QUESTION 4 A farmer grows sells a bucket of milk to a cheesemaker for $12. The cheesemaker turns the milk into cheese and then sells the cheese to a pizzamaker for $20. The pizzamaker uses the cheese to bake pizza and sells the pizza to an economist for $35. The economist eats the bread. What is the value added by each person? What is the overall contribution to GDP of these transactions? Answer the following. Enter numbers only. Do not enter symbols or letters. (a) Value added by farmer: (b) Value added by cheesemaker: (c) Value added by pizzamaker: (d) Overall contribution to GDP QUESTION 5 Suppose the marginal propensity to consume of a consumer is 0.8 and this consumer earns an extra $1200. The consumption spending of this consumer would be expected to increase by how much? Only enter numbers. Do not enter letters or symbols. QUESTION 6 (Fill in all blanks) Decrease in money demand shifts the (IS/LM ) curve to the (left/right) and leads to a (increase/decrease) in Y and (increase/decrease) in r. In order to stabilize Y: Monetary policy can (increase/decrease) money supply. Fiscal policy can (increase/decrease) G or (increase/decrease)