question one:

Jan is a data service provider. On December 31, 2016 she purchased a building for $600,000 and servers for $500,000. In 2017 she equipped her building with workstations, data processors and a supercomputer and paid $800,000 in total. During 2017 the market value of some of her older servers she had bought in 2016 fell by $140,000. Which of the following is correct?

a. During 2017 the gross investment was $1,300,000, depreciation was $140,000 and net investment was $1,160,000.

b. During 2017 the gross investment was $1,400,000, depreciation was $140,000 and net investment was $1,260,000.

c. During 2017 the gross investment was $800,00, depreciation was $140,000 and net investment was $660,000

d. During 2017 the gross investment was $1,900,000, depreciation was $140,000 and net investment was $1,760,000.

Question 2: Fill in the blanks in the statement below with the combination of the two clauses given that relate to aggregate supply and real GDP supplied:

"When the money wage rate rises in Canada the ______. When the price level in Canada rises the _____."

a. long-run aggregate supply decreases; short run aggregate supply increases

b. short-run aggregate supply decreases; the quantity of real GDP supplied increases

c. short-run aggregate supply increases; the quantity of real GDP supplied decreases

d. long-run aggregate supply increases: the quantity of real GDP supplied increases.

Q 3: Assume that for 2017 the real GDP in Lafonia (an imaginary country) was $1.8 trillion and for 2018 it was $1.9 trillion. Assuming that this growth rate will continue into the future, how many years will it take for the real GDP to double to $3.6 trllion? (choose the closest value)

a. 12.6 years

b. 5.6 Years

c. 19.5 years

d. 38.9 years

Q 4: Which of the following is correct with respect to deflation?

a. Deflation increases the real GDP.

b. Deflation decreases the real wages of workers with long-term contracts.

c. Deflation increases the unemployment rate.

d. Deflation results in lower prices which causes businesses to increase production.

q 5 : In 2017, Lafonia had a real GDP of $6.4 billion and a population of 3.5 million. In 2018, the real GDP was $6.9 billion and the population was 3.7 million. Between 2017 and 2018, Lafonia's per capita real GDP (choose the closest value):

a. decreased by 0.1%.

b. increases by 0.13%

c. increased by 2.0%

d. increase by 1.5%