AGEC 105 Exam 3 Questions and Answers Graded A+

AGEC 105 Exam 3 Questions and
Answers Graded A+

The following information supposedly collected on a particular country by the

CIA.




Consumption Expenditures $3,600 million

Imports $1,200 million

Depreciation $300 million

Government Expenditures $1,000 million

Gross Private Domestic Investment $1,000 million

Tax Revenues $700 million

Exports $800 million

Implicit GDP Deflator 2.00 (1996 = 1.00)




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, Nominal GDP is equal to: - Correct answer-$5,200 million

Given the following equation where DPI represents disposable personal income:




C = 1,500 + 0.85(DPI)




If disposable personal income is $5,000, consumer spending would be equal to: -

Correct answer-$5,750

A barter economy occurs where: - Correct answer-households pay for services

provided by labor with goods and services




businesses provide services to households in exchange for goods and services




excludes financial markets

Investment expenditures consists of: - Correct answer-construction of office

buildings

Aggregate demand in the economy is equal to: - Correct answer-consumption,

investment and net exports

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