Suppose you are evaluating an opportunity to purchase a condominium in central Boulder. The condominium has an asking price of $555,500. Your first step in deciding whether to buy the property is to identify your best financing alternative. The condominium is a 2-story unit, with 3 bedrooms and 3 baths. It also has a deck, patio, and a 2-car attached garage with storage space. Assume that this property will be your primary home. Assume that you will have $90,000 available for a down payment and that you plan to close on your loan within 30 years. You are not selling a home in preparation of buying this property.

A common way to identify a set of loan opportunities available to you is via the internet. Useful websites include: LendingTree.com, BankLoans.com, BankRate.com, Amerisave.com, and QuickenLoans.com. The problem with using any of these clearinghouses is that you will subsequently be bombarded by numerous loan agents, trying to get your business. Feel free to investigate any of these sources if you are interested. However, in an attempt to standardize this project, as well as to reduce your search costs, I have assembled the following data on various loan alternatives.

You are to thoroughly evaluate each of the following loan types (assuming monthly payments on all loans):

1.Adjustable-Rate 3/1 30-Year Mortgage Loan: Initial Rate = 3%, Index = Rate on US Treasury Security with same Time-to-Maturity as that of the Outstanding Loan (e.g., at t=36, the Index is the rate on the 27-year US Bond; at t=48, the Index is the rate on the 26-year US Bond; and so on), Margin = 0.750%.

2.Adjustable-Rate 5/1 30-Year Mortgage Loan: Initial Rate = 5.000%, Index = Rate on US Treasury Security with same Time-to-Maturity as that of the Outstanding Loan (e.g., at t=60, the Index is the rate on the 25-year US Bond; at t=72, the Index is the rate on the 24-year US Bond; and so on), Margin = 0.70%.

Year 2010 Year 2011 Year 2012 Price Quantity Price Quantity Price Quantity Chips $4 100 $4 110 $5 80 Dips $5 50 $4 40 $3 50 Sodas $3 50 $5 60 $5 70 Question 1. GDP [10 Points in Total] a. (3 points) Compute nominal GDP in 2010, 2011, and 2012. [Show your computation work] b. (3 points) Compute real GDP in 2010, 2011, and 2012 (base year method). [Show your computation work] c. (2 points) Compute GDP deflator in 2010, 2011, and 2012. [Show your computation work] d. (2 points) Compute growth rates of nominal GDP and real GDP from 2010 to 2011 and from 2011 to 2012. [Show your computation work] Question 2. Inflation [7 Points in Total] a. (3 points) Compute cost of CPI basket in 2010, 2011, and 2012. [Show your computation work] b. (2 points) Compute CPI in 2010, 2011, and 2012. [Show your computation work] c. (2 point) Compute inflation rates (based on CPI) from 2010 to 2011 and from 2011 to 2012. [Show your computation work] Question 3. Business Cycle [3 Points in Total] a. (2 points) Based on your answers on Question 1 and 2 above, did Aggieland experience an expansion or a recession from 2010 to 2011? How about from 2011 to 2012? Was it at peak or trough or neither in year 2011? b. (1 point) From 2010 to 2011, did Aggieland experience an inflation or deflation? How about from 2011 to 2012?QUESTION 30 1. Table 23-6 The table below contains data for the country of Batterland, which produces only waffles an d pancakes. The base year is 2013. Year Price of Quantity of Price of Quantity of Waffles Waffles Pancakes Pancakes 2010 $2.00 80 $1.00 100 2011 $2.00 100 $2.00 120 2012 $2.00 120 $3.00 150 2013 $4.00 150 $3.00 200 Refer to Table 23-6. In 2010, this country's nominal GDP was $260 $440 $620 $760 QUESTION 31 Sheri, a U.S. citizen, works only in Germany. The value she adds to production in Germany i +'s included in both German GDP and U.S. GDP in German GDP, but is not included in U.S. GDP ET C in U.S. GDP, but is not included in German GDP in neither German GDP nor U.S. GDP QUESTION 32 Disposable personal income is the income that "households have left after paying taxes and non-tax payments to the government businesses have left after paying taxes and non-tax payments to the government households and noncorporate businesses have left after paying taxes and non- tax payments to the government households and businesses have left after paying taxes and non- tax payments to the government QUESTION 33 Gross domestic product adds together many different kinds of goods and services into a singl e measure of the value of economic activity. To do this, GDP makes use of C market prices " statistical estimates of the value of goods and services to consumers. prices based on the assumption that producers make no profits the maximum amount consumers would be willing to payQuestion 19 1 pts Use the following hypothetical data in TABLE 7 to calculate GNP. Note: Exports are negative 267, that is, there is a minus sign before 267. Enter your answer as a number only. That is, don't put any comma or period signs. TABLE 7 Billions of dollars Net Exports -267 Dividends 50 Capital Consumption Allowance 203 Government expenditures 377 Rents 260 Value of Intermediate goods 300 Indirect business taxes 155 Wages 900 Corporate Income taxes 95 Interest 160 Proprietor's income 132 Personal Consumption expenditure 1600 Undistributed corporate profits 85 Gross private domestic investment 330 NFFI 0