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Rave Lend f multiplier FIGURE 1 -= 50 10 = 500 FIGURE 2 FIGURE 3 FIGURE 4 AS ASI ASZ ADI Use the figures shown

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Rave Lend f multiplier FIGURE 1 -= 50 10 = 500 FIGURE 2 FIGURE 3 FIGURE 4 AS ASI ASZ ADI Use the figures shown above to answer questions 9 and 10. These figures were provided in class. 4. Suppose the Fed lowers the discount rate. Circle which of the following figures (shown below) will occur? (Assume the starting position is equilibrium 1, that is er in all four figures.) Answer: FIGURE 1 FIGURE 2 FIGURE 3 FIGURE 4 5. Suppose the Fed sells bonds. Circle which of the following figures (below) will occur? Answer: FIGURE 1 FIGURE 2 FIGURE 3 FIGURE 4 2820 40 080 100 APARTMENTS [Thousands) TABLE 1 USA India Net Exports ($ billion) -731.2 -12.11 Inflation Rate (%) 2.9 6.4 Public Debt (% GDP) 60.8 58.2 Labor Force (million) 153.1 516.4 GDP per capita 45,800 2,600 GDP ($ trillion) 13.78 2.966 Number of people unemployed (million) 7.0426 31.1808 Military Spending (% GDP) 4.06 2.5 Internet users (million) 223 80 From TABLE 1, calculate the unemployment rate for: 9. USA: India: From TABLE 1, calculate the misery index for: 10. USA: India: 27

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