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m | HW Assignment #5Directions: Answer all Questions. ANSWER BOX: Please record answers here for Questions 1 through 12. Thanks.Name:- Shawn M. Smalls 1. | 2. | 3. | 4. | 5. | 6. | 7. | 8. | 9. | 10.Ans = | B | E | D | A | E | A | A | B | C | D |
1.Compute the GDP using the data in the table Government Purchases | 15 | | Consumption | 90 | | Gross Investment | 20 | | Consumption of Fixed Capital | 5 | | Exports | 8 | | Imports | 12 | | | | | | | | a.$129 | | b.$121.c.$150d.$125e. $120 | | | |

Use the IS curve below for Question 2: 2.At what point (1,2,3,4 or 5) will the economy be located if aggregate output is below the level of planned spending and, if aggregate output is below the equilibrium level of output. a. Point 1 b. Point 2 c. Point 3 d. Point 4 e. Point 5

3. From the IS curve below, At what point (1,2,3,4 or 5) will the economy be located if aggregate output is below the level of planned spending, and there is an unplanned decline in inventories?.

a. Point 1 b. Point 2 c. Point 3 d. Point 4 e. Point 5 4. From the LM curve below, At what point (1,2,3,4 or 5) will the economy be located if people are holding more money than they desire? a. Point 1 b. Point 2 c. Point 3 d. Point 4 e. Point 5

5. From the LM curve below, At what point (1,2,3,4 or 5) will the economy be located if the interest rate is below the equilibrium level and people are holding less money than they desire?

a. Point 1 b. Point 2 c. Point 3 d. Point 4 e. Point 5 6. Using demand and supply analysis to assist you, what are the effects on the exchange rate between the British pound and the Japanese yen from: a decrease in Japanese interest rates a. The yen

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