1. The table below shows data for India's economy. Real GDP is measured in millions of rupees.

	Price level	Real GDP supplied in the short run	Real GDP demanded
a	114	23,501	35,898
b	120	25,355	32,341
c	125	27,670	27,670
d	131	30,366	18,569
e	138	33,164	15,898

If potential GDP in India is _______26 500_ million rupees, India is experiencing ____a recessionary_____.

1. 26,500; an inflationary gap
2. 28,500; an above full-employment gap
3. 26,500; a recessionary gap
4. 30,000; a potential GDP gap

1. The table below shows data for Germany including real GDP (in billions of euros) and the price level.

	Real GDP	Price level
2002	2,088	102.6
2003	2,083	103.6
2004	2,105	106.0
2005	2,121	108.2
2006	2,182	109.7
2007	2,237	109.5

1. What was the economic growth rate in 2004?

1. What was the inflation rate in 2006?

1. The table shows some of the items in the U.S. National Income and Product Accounts in 2008

Item	Amount (trillions of USD)
Consumption expenditure	10.0
Government expenditure	2.9
Indirect taxes less subsidies	0.8
Depreciation	1.9
Net factor income from abroad	0.2
Investment	2.1
Net exports	-0.7
Statistical discrepancy	0

Use the expenditure approach to calculate U.S. GDP in 2008.

1. In the economy of St. Maynard Island, autonomous consumption expenditure is $185 million, and the marginal propensity to consume is 0.75. Investment is $150 million, government expenditure is $100 million, and net taxes are $80 million. Investment, government expenditure, and taxes are constant - they do not vary with income. The island does not trade with the rest of the world.

1. What is the consumption function?

1. What is the aggregate expenditure function?

1. What is the island's autonomous aggregate expenditure?

1. What is the size of the multiplier in St. Maynard Islands economy?

1. What is the island's aggregate planned expenditure and what is happening to inventories when real GDP is $1,100 million?

e) What is the economy's equilibrium aggregate expenditure?