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AGEC 105 Exam 3 Questions with Answers (100% Correct Answers)

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AGEC 105 Exam 3 Questions with Answers (100% Correct Answers)

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AGEC 105 Exam 3 Questions with Answers (100%
Correct Answers)

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)




Nominal GDP is equal to: Answer: $5,200 million

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, 2

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: Answer: $5,750

A barter economy occurs where: 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: Answer: construction of office

buildings


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