ECON 1010 Study Guide - Midterm Guide: Potential Output, Producer Price Index, Output Gap

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16 Oct 2018

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Please carefully read each question (underline key points if you have to) then select the best/correct answer. 60 the unemployment rate for this economy is: 4. 8%, 5. 3%, 2. 9%, 5. 0%, (table: unemployment and employment data) according to the accompanying table, Gino"s pizza bruno"s dough carlo"s tomatoes aldo"s pepperoni. : (table: pizza economy) considering 2004 as the base year, real gdp in 2005 was, ,000, ,000, ,000, ,000. Suppose that in the base period a college student buys 20 gallons of gasoline at . 00 per gallon, 2 cds for each, and 4 movie tickets for each. In the next month, the price of gasoline is . 25 per gallon, cds cost . 50 each, and the price of a movie ticket is . 50: (exhibit: price index) the change in prices for the month is: Suppose that the current real gdp per capita of the united states is ,000, and its growth rate is 2% per year.

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There are many economic models to explain the macro-economies function. Adam Smith started the classic economic thinking with his laissez-faire theory. The classical foundation for the role of money supply in an economy started in the mid-1700s. In classic macroeconomics, money is used for transactions. If there is more money or less money in circulation then it means that the prices are higher or lower. The classic model dominated microeconomics and macroeconomics of 1800 and 1900. In the classic macroeconomic model, the role of money is that it is used for transactions. The classic role of money can be understood through the quantity theory of money. The quantity theory of money states that if there are changes in the price level, then there will be corresponding changes in the money supply. The equation for the quantity theory of money is: M * V = P * Q

In this equation,

M = Nominal money supply

V = Velocity of money

P = Average price level

Q = Quantity of goods and services sold

The average price times quantity of goods and services sold represents the nominal GDP. The velocity of money is the number of times a currency is spent during a year.

Say's Law states that supply creates its own demand. It means that the income that is derived from producing some goods by an individual, allows him to purchase goods produced by some other individual. Since everyone has a need to purchase goods, they will produce some goods to earn income and buy what they want. So, the product markets will always be in equilibrium.

Show an empirical study that tests the relative inflation and growth rates on the nominal exchange rates.

copperlouse565

Part (b) [1 MARK] The list below is shown after each pass of a sorting algorithm. ['M', 'A', 'D', 'E', 'B', 'F', 'C'] # initial list | Which sorting algorithm is being executed? (circle one) (a) bubble sort ('A', 'M', 'D', 'E', 'B', 'F', 'C'] # after one pass ('A', 'B', 'D', 'E', 'M', 'F', 'C'] # after two ['A', 'B', 'C', 'E', 'M', 'F', 'D'] # after three ('A', 'B', 'C', 'D', 'M', 'F', 'E'] # after four ('A', 'B', 'C', 'D', 'E', 'F', 'M'] # after five (b) selection sort (c) insertion sort

Part (a) [1 MARK] The list below is shown after each pass of a sorting algorithm. ['M', 'A', 'D', 'E', 'B', 'F', 'C'] # initial list Which sorting algorithm is being executed? (circle one) (a) bubble sort ['A', 'D', 'E', 'B', 'F', 'C', 'M'] # after one pass ['A', 'D', 'B', 'E', 'C', 'F', 'M'] # after two ['A', 'B', 'D', 'C', 'E', 'F', 'M'] # after three ['A', 'B', 'C', 'D', 'E', 'F', 'M'] # after four (b) selection sort (c) insertion sort

ECON 1010 Study Guide - Midterm Guide: Potential Output, Producer Price Index, Output Gap

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