Macroeconomics questions

  1. In the country of Crete household consumption is $7,411, government spending is $4,159, net taxes are $3,959, exports are $2,479, imports are $4,004 and GDP is $17,979

What percentage of Crete’s investment is financed by private foreign savings?


  1. Thessaloniki is a new country that has zero debt in 2008. The government revenues and outlays from 2009 to 2013 are the following:
3.       Year 4.       Revenue 5.       Outlays
6.       2009 7.       208 8.       381
9.       2010 10.   343 11.   425
12.   2011 13.   218 14.   221
15.   2012 16.   304 17.   522
18.   2013 19.   315 20.   370

What was Thessaloniki’s government debt in 2013? (enter this number as positive)


  1. Imagine that in the country of Karpathos the interest paid on the debt of the government is $5,242, indirect taxes are $4,158, transfer payments from the government to households are $7,937, personal income taxes are $3,773, purchases of goods and services by the government are $4,016, social security taxes are $4,324 and corporate income taxes $2,935.

What is the federal budget in Karpathos? (hint: this number could be positive or negative so be careful with the signs)


  1. In 2012 in the country of Rhodes  the economy is at potential GDP and it has a government surplus of $193 billion. In 2013, the economy of Rhodes enters a recession and it is below potential GDP and the government deficit is $95.

What is the cyclical deficit?  (please enter this number as positive).



  1. Assets Liabilities

Loans $139          Deposits $275


What is the reserve ratio?

  1. If traveler’s checks were $1,781 higher and saving deposits were $5,514 higher, M1 would be $___  higher.


Bills and coins 12,436
Saving Account Deposits 19,201
Small Time Deposits 22,187
Checking Account Deposits 45,158
Money Market Accounts 30,867
Traveler’s checks 34,024

What is the value of M1?



  1. In the economy of Milli output is 9,100 goods per year, the amount of money is $176 and each dollar is spent an average of 40 times per year. According to the Quantity Equation of Money, what is the average price level?



  1. Last year, Tealandia produced 63,230 bags of green tea, which sold at 21 units each of Tealandia’s currency-the Leaf. Tealandia’s money supply was 1,467. What was the velocity of money in Tealandia?




Bills and coins 26,752
Saving Account Deposits 46,587
Small Time Deposits 44,718
Checking Account Deposits 36,191
Money Market Accounts 39,094
Traveler’s checks 19,283

What is the value of M2?

  1. Which list ranks assets from most to least liquid?

currency, fine art, stocks

fine art, stocks, currency

currency, stocks, fine art

fine art, currency, stocks


  1. Which of the following represents the Quantity Equation of Money?

M x Y = P/Y

P x V = M x Y

P/V = M/Y

M x V = P x Y