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3. What is the rate of inflation from period 1 to period 3, using the GDP deflator method,
given that the nominal GDP in period 3 is $38,900 and real GDP in period 3 using period
1 as the base year is $40, 820? Show your work. (1 point)
b.
c.
d.
e.
10. Name 3 things the Fed could do in order to decrease the money supply (1 point)
11. Define the 3 functions of money and give an example of each (2 points)
e. Federal surpluses
13. Name 2 things the government can do to remedy a recession (2 points)
20. Assume the reserve requirement is 20%. If the Fed buys $40 million in an open market
operation, what will happen to the money supply? Show your work. (1 point)
29. What are the 3 types of trade restrictions? Describe each one. (3 points)
30. Using a graph, show the effect on equilibrium price after an import tariff has put in place.
You may use any good as an example. (2 points)