ECON 4710 Chapter : Problem Set 2
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Econ 4710 aggregate economic analysis, spring 2012. Answers to problem set 2 / practice midterm exam 1. Before they were married, she paid him ,000 per year. He continues to wait on her as before (but as a husband rather than as a wage earner). She earns ,000,000 per year both before and after her marriage. The marriage: does not change gdp, decreases gdp by ,000. 4: suppose that gdp (y) is 5,000. Consumption is given by the equation c = 500 + Government spending (g) is 1,000 and taxes (t) is also 1,000. When a technological innovation changes the investment function to i. The price of the same tall latte in japan is 370. The current yen- dollar exchange rate is 83. 3/$. Short- answer questions: [15pts] consider a large open economy, suppose that this economy is characterized by the following equations: Y = c + i + g + nx. I = 1500 100r. Nx = 500 500 .
