MACROECONOMICS MACROECONOMICS HOMEWORK ASSIGNMENT # 1 (Sections 5-9) NAME: ______________________ DATE: ______________________ COMPLETE EACH QUESTION AND SHOW YOUR WORK. TYPE YOUR ANSWERS AND TURN IN...

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MACROECONOMICS MACROECONOMICS HOMEWORK ASSIGNMENT # 1 (Sections 5-9) NAME: ______________________ DATE: ______________________ COMPLETE EACH QUESTION AND SHOW YOUR WORK. TYPE YOUR ANSWERS AND TURN IN BY THE ASSIGNED DUE DATE THRU BLACKBOARD IN EITHER A WORD DOC OR PDF FILE. THIS IS NOT A GROUP ASSIGNMENT. ALL WORK MUST BE YOUR OWN. 1) List and define the three main economic indicators. (9 points) 2) How is the U-3 unemployment figure calculated? (5 points) 3) What is the CPI-U, and what is it used for? (5 points) 4) If a company lays off workers because robots took their jobs, which type of unemployment is this considered? (5 points) 5) If the government causes inflation by printing (or digitizing) a large amount of money, which type of inflation would this be considered? (5 points) 6) Complete a balance sheet entry for the following banking transaction: An initial deposit of $5,000 with a reserve ratio of .1 (6 points) 7) Using the rule of 72; figure out how many years it will take for an account balance of $100,000 to double with an interest rate of 4.5%. (Show your work) (5 points) 8) Complete the table indicating the amount and whether there is a trade surplus or trade deficit. (4 points) Year Imported Goods Exported Goods Trade Surplus (+) or Trade Deficit (-) 1 2 3 4 $1,233 1,567 879 1,974 $ 767 2,231 1,002 1,689 ____________ ____________ ____________ ____________ 9) Complete the following table. (Type Appreciate or Depreciate only - no calculation required) (4 points) Currency Dollar Equiv. First time period Dollar Equiv. Second time period U.S. dollar Appreciate or Depreciate Euro Mexican Peso Japanese Yen Canadian Dollar .74 12.45 105.22 1.02 .92 18.58 103.83 .96 ____________ ____________ ____________ ____________ 10) What does the Fed do when they want to increase the money supply? (6 points) 11) What does the Fed do when they want to decrease the money supply? (6 points) 12) How are contributions to a Roth IRA taxed? (5 points) 13) How are contributions to a Traditional IRA taxed? (5 points) 14) At retirement age, which IRA is tax-free? (5 points) 15) What are the 3 main trade barriers a Government can impose? (5 points) 16) What are the 3 functions of money? (5 points) 17) What part of the money supply is the most liquid? (5 points) 18) Which type of retirement plan is through your employer? (employer-sponsored plan) (5 points) 19) Which exchange rate system do we currently use? (5 points)