How will the construction of these skyscrapers impact Fitlandias gross domestic product GDP in Year 1 and Year 2?

UNIT 2 EXAM REVIEW – ECONOMIC INDICATORS AND THE BUSINESS CYCLEName: _______________________________________________Unit 2.1 – The Circular Flow and GDP (Module 10)1.Using the image from the notes and from textbook, draw out the circular flow model.2.

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3.In Fitlandia, a $100 million skyscraper is constructed over two years. In year 1, 60 million is spent on itsconstruction, and in year two 40 million dollars were spent. How will the construction of these skyscrapers

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4.The Frank-Heggood Corporation began 2018 with $50 million in capital. In 2018, the Frank Heggood Companyspent $400 million on inventory, $200 million on new capital, and experienced 10% depreciation of its capital.The government subsidizes the Frank Heggood Corporation with $200 million for capital improvements, andpurchases $50 million worth of goods from the corporation. Based on this information, what is the totalcontribution to gross domestic product (GDP) in 2018. Which category would this be counted towards?

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It is now December 31, 2015 (t=0), and a jury just found in favor of a woman who sued the city for injuries sustained in a January 2014 accident. She requested recovery of lost wages plus $300,000 for pain and suffering plus$60,000 for legal expenses. Her doctor testified that she has been unable to work since the accident and that she will not be able to work in the future. She is now 62, and the jury decided that she would have worked for another three years. She was scheduled have earned $36,000 in 2014. (To simplify this problem, assume that the entire annual salary amount would have been received on December 31, 2014.) Her employer testified that she probably would have received raises of 3% per year. The actual payment for the jury award will be made on December 31, 2016. The judge stipulated that all dollar amounts are to be adjusted to a present value basis on December 31, 2016, using an 8% annual interest rate and using compound, not simple, interest. Furthermore, he stipulated that the pain and suffering and legal expenses should be based on a December 31, 2015, date. How large a check must the city write on December 31, 2016?

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It is now January 1, 2016, and you are considering the purchase of an outstanding bond that was issued on January 1, 2014. It has an 8% annual coupon and had a 30-year original maturity. (It matures on December 31, 2043.) There is 5 years of call protection (until December 31, 2018), after which time it can be called at 108—that is, at 108% of par, or $1,080. Interest rates have declined since it was issued, and it is now selling at 119.12%of par, or$1.191.20. a. What is the yield to maturity? What is the yield to call? b. If you bought this bond, which return would you actually earn? Explain your reasoning. c. Suppose the bond had been selling at a discount rather than a premium.Would the yield to maturity have been the most likely return, or would the yield to call have been most likely?

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How will the construction of these skyscrapers impact Fitlandias gross domestic product GDP in Year 1 and Year 2?

How will the construction of these skyscrapers impact Fitlandias gross domestic product GDP in Year 1 and Year 2?

How will the construction of these skyscrapers impact Fitlandias gross domestic product GDP in Year 1 and Year 2?

How will the construction of these skyscrapers impact Fitlandias gross domestic product GDP in Year 1 and Year 2?

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How will the construction of these skyscrapers impact Fitlandia's gross domestic product GDP in Year 1 and Year 2?

In year 2, $40 million is spent. How will the construction of these skyscrapers impact Fitlandia's gross domestic product (GDP) in year 1 and year 2? Unaffected in year 1; increases by $100 million in year 2.

Can the real GDP of this economy increase between Year 1 and Year 2 while the nominal GDP decreases or remains the same?

The correct answer to the given question is option e. The aggregate price level remained the same. Thus, the growth rate in real GDP from year 1 to year 2 can be the same as the growth rate in nominal GDP (i.e. 5%) only when the aggregate price level remains the same during the 2 years.

What is the growth rate of real GDP year 1 to 2?

percentage change chain-weighted real GDP from year 1 to year 2 is therefore 100.8%.

Which of the following is the best definition of a country's gross domestic product GDP )?

GDP measures the monetary value of final goods and services—that is, those that are bought by the final user—produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.