Principles of Macroeconomics - Final Exam
1.) Estimate the GDP, NDP, and NI
Compensation of employees
194.20
U.S. exports of goods and services
17.80
Consumption of fixed capital
11.80
Government purchases
59.40
Taxes on products and imports
14.40
Net private domestic investments
52.10
Transfer payments
13.90
U.S. imports of goods and services
16.50
Personal taxes
40.50
Net foreign factor income
2.20
Personal consumption expenditures
219.10
Statistical discrepancy
0
2.) Define any five of the terms below:
Real GDP, Recession, Economic Growth, Treasury Bills, Peak, Bond, Derivatives, Equity, Trough
3.) When r = 14.5%, New Deposit = $1500. Complete the table up to the 7th bank.
Find TD: Total Deposits and Total Loans
4.) A. What are the instruments of credit control of Federal Reserve Bank (FRB)? What happens to
money supply when FRB buy securities and Discount state of FRB rises. Explain the effect of
open market operations on the economy.
B. How FRB differs from other banks?
5.) A. Given the following supply and demand functions for a good, find the equilibrium price and
quantity. In each case, show the solution graphically for values of p from zero to 20.
a. $q^D = 2p + 20; q^S = 4p - 10$
b. $q^D = 0.5p + 20; q^S = 1.5p - 10$
c. $q^D = 0.125p + 9; q^S = 1.25p - 13$
