Macro Exam

Question 1

GDP/ capita

Answer 1

Value of GDP/ Country population

Question 2

GDP formula

Answer 2

Y=C+I+G+NX

GDP)=(Consumption)+(Investment)+(Gov’t Purchases)+(Net Exports

Question 3

Total Savings Formula

Answer 3

S=SPrivate+SPublic
S= (Y+TR-C-T) + (T-G-TR)
S=Y-C-G

S=I

Question 4

Investment formula

Answer 4

I=Y-C-G

Question 5

Private Saving Formula

Answer 5

SPrivate=Y+TR-C-T

Question 6

Public Saving Formula

Answer 6

SPublic=T-G-TR

Question 7

Given G, T, TR, How find deficet

Answer 7

G-T-TR <0

Question 8

Velocity

Answer 8

V=P*Y/M

Question 9

Simple deposit multiplier

Answer 9

1/RR.

Question 10

Quantity Equation

Answer 10

Quantity Equation= MV=PY

Money Supply)x(Velocity of Money)=(Price level)*(Real output

Question 11

Inflation rate

Answer 11

Inflation rate=Growth rate of the money supply+Growth rate of velocity−Growth rate of real output.
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Question 12

Change in checking account

depositsequals

Answer 12

Change in checking account
depositsequals=Change
in bank
reservestimes×1/rr

Question 13

Total increase in deposits

Answer 13

Total increase in deposits=$1,000×10=$10,000.