econ formulas
Bank 1 has deposits of $4,155 and reserves of $1,272. If the required reserve ratio is 20%, what is the value of the bank's excess reserves? Enter a whole number with no dollar sign. Round to the nearest whole number.
4,155 times 20% and then the reserves should be subtracted by that number.
Bank 1 has deposits of $5,214 and reserves of $2,048. If the required reserve ratio is 20%, then what is the largest loan the bank can make? Enter a whole number with no dollar sign. Round to the nearest whole number.
4,155 times 20% and then the reserves should be subtracted by that number.
Suppose people deposit $522 into Bank 1. The banking system has a reserve ratio of 19%. The policy of all banks is to make as many loans as possible. Each time a loan is made, the entire amount is spent, and it is then deposited into the next bank.
522 times 0.19 then have that number 522- number
Investment spending
GDP - consumption spending - government spending
Private saving
GDP - taxes - consumption spending
The natural rate of unemployment is the sum of what other types?
Structural and frictional
There are 181 employed people and the labor force is 204. Now suppose 2 discouraged workers start looking for work. What is the new unemployment rate? Round to two decimal places and do not enter a percent sign.
You add 2 to 181 then have that over 204 with that number put it over 204 to get the new value. times 100
currency
both m1 and m2
National saving
investment spending = GDP - consumption spending - government spending
Bank 1 has deposits of $4,102 and reserves of $1,560. If the required reserve ratio is 20%, what is the value of the bank's required reserves? Enter a whole number with no dollar sign. Round to the nearest whole number.
just multiply 4102 by 20%
structural unemployment
longer-lasting form of unemployment caused by fundamental shifts. ex: technology, competition, and government policy.
checking deposits
m2
saving deposits
m2
stocks and bonds
neither
National saving
private saving + public saving
The labor force participation rate is 66.13%. The labor force has 140 people. Find the adult population, rounded to two decimal places.
put 140/66.33 to get the answer times 100
natural rate
represents the lowest unemployment rate whereby inflation is stable or the unemployment rate that exists with non-accelerating inflation. if authorities decide to increase the minimum wage by $2 at any given time, some workers are likely to be laid off due to lowering labor demands.
There are 176 employed people and the labor force is 199. Find the unemployment rate, measured in percentage terms. Do not enter a percent sign. Round your answer to two decimal places.
subtract labor force from unemployed over the labor force to get answer times 100
Government (public) saving
taxes - government spending
frictional unemployment
the result of voluntary employment transitions within an economy. ex: Employees leaving their current positions to find new ones.
There are 187 employed people and 11 unemployed people. The adult population consists of 256 people. What is the labor force participation rate? Round to two decimal places and do not enter a percent sign.
the way to solve this problem is by adding the employed and unemployed over the adult population and multiply by 100.
cyclical unemployment
this unemployment is the component of overall unemployment. ex: recessions
There are 6 unemployed people and 94 employed people. Find the unemployment rate, measured in percentage terms. Do not enter a percent sign. Round your answer to two decimal places.
to solve this you have to put unemployed people over unemployed plus employed and multiply by 100.
