These calculations are similar to the type of calculations you will need to perform on the exam. MACROECONOMIC CALCULATIONS 1) Calculate the money supply M2: savings deposits = $300 currency in circulation = $200 treasury bonds - $1000 traveler's checks = $20 2) Given an initial excess reserves of $500 and a reserve ratio of 20%, calculate the amount of money potentially created by the banking system. 3) If the government reduces taxes by $50 billion in an economy with a MPC equal to 0.80, by how much would real GDP increase? checkable deposits = $80 small-denomination time deposits = $600 large-denomination time deposits = $900 4) If real GDP doubles in 20 years, calculate the average annual growth rate. Corn Soybean 5) Which state has the comparative advantage in corn? Soybean? Illinois Indiana eco261 finalreview.OR2 4000 1500 1000 1000
