ECONOMICS-GROUP A1.MIDTERM

• SECTION A (22 P)• Fill in the gaps with the most appropriate word or phrases.• Monopoly is an industry composed of only one firm that produces a

product for which there are no close ____substitutes__________________ and in which significant _____barriers_____ exist to prevent new firms from entering the industry. (2 P)

• The ___kinked demand curve_____model is a model of oligopoly in which the following assumption has been made: Competitive firms will follow if a single firm cuts price but will not follow if a single firm raises price.(3 P)

• The ____short run marginal cost_______ curve of a competitive firm is the part of its marginal cost curve that lies above its average variable cost curve. (2 P)

• The ___short run____ is a period of time for which two conditions hold:

• The firm is operating under a _fixed scale____ of production, and

• firms can neither enter nor exit the industry. (2 P)• The negative slope of the production possibility frontier curve

reflects the law of _increasing opportunity costs__________________. As we increase the production of one good, we sacrifice progressively more of the other. ( 3 P)

• A ___price ceiling___ is a maximum price that sellers may charge for a good, usually set by government.(2 P)

• __shortage___, is the condition that exists when quantity demanded exceeds quantity supplied at the current price.(2 P)

• __complements______ are goods that “go together”(e.g toothpaste and toothbrush); a decrease in the price of one results in an increase in demand for the other, and vice versa.(2 P)

• ___Positive______ economics is an approach to economics that seeks to understand behaviour and the operation of systems without making judgements

• e.g If tax is imposed on tobacco, the price of the cigarettes will rise (2 P)

• To isolate the impact of one single factor, we use the device of ____ceteris paribus____________, or all else equal e.g If gasoline prices rise by 10 percent, how much less driving will there be, assuming no simultaneous change in the income, population, laws and all other remain constant (2 P)

• SECTION B ( 24 P)• Choose the right answer from 5 multiple choices for

each question• Which of the below given properties has/have been

concerned with an oligopoly?• Price leadership• Legal restrictions(limitations)• Predatory pricing• a)I b)II c)III d) I and III e)II

and III• Answer: d

• 2. Which of the statements given below is false for a perfect competition?

• a) Resources have been allocated efficiently• b) Products are either homogenous or differentiated• c) The demand is more elastic than the demand faced

by a monopolistic competitor• d) There are lots of small firms which do not have

control over price• e) New firms may enter the market and existing firms

may leave the industry• Answer: b

• 3. For which of the given products or services would you expect the lowest income elasticity of demand?

• a) Diamond• b)Furniture• c) Cosmetics• d) Drug • e) Fly ticket• Answer: d

• 4.Which of the reasons listed below can not be considered for increasing returns to scale?

• a) Specialization• b) Learning and experience• c) Decreasing ratio of inventories to the whole

production• d) The rise in capital costs is lower than the increase

in the production capacity• e) Communication and management failure due to

expanding hierarchy• Answer: e

5. Which of the statements is/are false according to the graph drawn above?I. At the production level of Q3 and at a price level of P2 ,G is the shut down pointII. At a price level of P3 , D is the profit maximization pointIII. At a price level of P3 , the firm makes less profit at the production level of Q1 than that when operating at Q2

I b)II c)III d)I and II e)I,II and III6. Which of the statements is/are false according to the graph drawn above?I.At a price level of P3, E is the break even pointII. AFC at the production level of Q4 is smaller than AFC at the production quantity of Q2

III.The firm makes operating loss at a production level of Q3, when price is P2

I b)II c)IIId) I and II e)II and III

5. D6. C

• 7. Which of the statements given below is/are correct?

• I.Short run marginal costs= Long run average costs= Price

• II. The optimal scale of the plant in the long run is where MR=MC

• III. Accounting profits are driven to zero in the long run

• a)I b)II c) III d)I and II e)II and III• Answer: A

• Assume that there are two goods a consumer can buy. The total utility function of these two goods are given :

• TUA= 600 QA -12 QA2

• TUB= 800 QB – 8 QB2

• The monthly income of the consumer is 220 TL, the prices of the goods are: PA= 6 TL and PB=4 TL

• Calculate the max. total utility at the optimum combination of A and B that the consumer will get ? (First find out what the quantities of A and B for the max. satisfaction are!) (8 P)

• If there is a fall in the price of the good A from 6 TL to 3 TL,(the price of B will not change) what would be the marginal utility for A and B? (6 P)

• If the marginal utility of money MUTL = 64 for 1 TL, PA= 3 TL and PB= 4 TL, how much can the consumer save (4 P) and what will be his total utility? (4 P)

• 2.For a firm operating in an automobile industry the total product function is given as:

• TP= 12 L2 – L3 – 2L. There are 50 machines operating in the production of the spare parts. The rental cost per machine is 100 TL/day. The wage paid to one employee is 30 TL/day. Unit material costs are calculated 10 TL/day per spare part produced.

• The supply and demand functions for the perfectly competitive market are:

• QD= 7000 – 50 P

• QS= ─ 3000 + 30 P• Assuming that the firm is operating at a quantity of

production where its AVC is minimum.

• Calculate the profit while operating at min. AVC (8 P)• Calculate the AVC at the minimum MC (6 P)• Calculate consumer surplus and producer surplus by drawing a

graph (10 P)• Calculate the point price elasticity of demand at the

equilibrium point ( 6 P)• Calculate economies of scale and AC (average total costs),

when the firm decides to operate with 75 machines in the long run ( % change in capital units= % change in labor units) ( 8 P)

• AVC=Average variable cost TP=Total product• ATC=average total cost• MC=Marginal cost• L=Labor unit

1.MIDTERM-GROUP B• SECTION A(22 P)• Fill in the gaps with the most appropriate word or phrases.• 1.In a perfect competition, price is determined by the interaction of

market _supply______ and ___demand________. (2 P)• 2. The__long run____ is a period of time for which there are no ___fixed

factors__________ of production. Firms can increase or decrease scale of operation, and new firms can enter and existing firms can exit the industry.( 2 P)

• 3. The law of ____diminishing marginal returns________ states that: When additional units of a variable input are added to fixed inputs, the marginal product of the variable input declines. ( 3 P)

• 4. Increasing returns to scale, refers to an increase in a firm’s scale of production, which leads to lower ___average costs__________ per unit produced. (2 P)

• 5. Charging different prices to different buyers is called ____price discrimination____.(2 P)

• 6. __Product differentiation_______ is a strategy used in a monopolistic competition and accomplished by producing products that have distinct positive identities in consumers’ minds in order to achieve market power. This action is often carried out through ____advertising__________ and provision of ___trademarking______________ . ( 3 P)

• 7. A ___price floor____________ is a minimum price below which exchange is not permitted.(2 P)

• 8. __Rationing coupons_____________ are tickets that entitle individuals to purchase a certain amount of a given product per month. ( 2 P)

• 9. ___Surplus________, is the condition that exists when quantity supplied exceeds quantity demanded at the current price.(2 P)

• 10. ___Substitutes________ are goods that can serve as replacements for one another(e.g tea and coffee) ; when the price of one increases , demand for the other __increases_____.(2 P)

• SECTION B ( 28 P)• Choose the right answer from 5 multiple choices for

each question• 1.For which of the below given production factors ,

the payments that are made are given correctly• I. Land- Interest• II. Labor- Rent• III. Enterpreneurship-Profit• I b)II c)III d) I and III

e)II and III• Answer: c

• 2. Suppose that there is a decrease in demand and an increase in supply for a product and the increase in supply is much greater than the decrease in demand, how will the price and the quantity of the good change at the equilibrium point?

• a) The price will fall down and the quantity will increase• b) The price remains constant and the quantity will

decrease.• c) The price will rise and the quantity will decrease.• d) Both the price and the quantity will increase• e) The price will increase and the quantity remains

constant.• Answer:a

3. The graph drawn above shows the production costs of a perfectly competitive firm in a short run.If the price level is P2 , at which quantity of production does the firm make maximum operating profit?a) Q0 b)Q1

c)Q2 d)Q3

e)Q4

Answer:c

• 4. A household’s decision about the quantity of a particular output to demand does not depend on:

• a)The price of the product in question.• b)The income available to the household.• c) The household’s amount of accumulated

wealth.• d) The prices of the inputs• e) Consumer preferences• Answer: d

• 5. Which of the statements is correct for a monopoly compared to a perfectly competitive market?

• I. The demand is more elastic• II. P>MR• III. Resources have not been allocated

efficiently• I b)II c)III d) I and II e) II and III• Answer:e

• 6. Which of the factors given below has not been regarded as a property of a monopolistic competition?

• a) Quality competition• b) Government franchises• c) Product differentiation• d) Price discrimination• e) A lot of small firms • Answer: b

• 7. Which of the goods described below does have the lowest price elasticity of demand (most inelastic) ?

• a) PC• b) Car• c) Tomato• d) Salt• e) Apartment(flat) • Answer: d

• SECTION C(60 p)• Given the total revenue and total cost function for a monopoly

as:• TR= 1000 Q – 24 Q2 ; TC= 3200 + 1000 Q – 72 Q2 + 2 Q3 • Calculate QC and PC (equilibrium points for a perfect

competition) (4 P)• Calculate QM and PM (equilibrium points for a monopoly) (4 P)• Calculate producer surplus for a monopoly (6 P)• Calculate deadweight (welfare) loss for a monopoly (8 P)• Calculate the point price elasticity of demand at QM and PM (4

P)• Calculate the profit of the monopolist at the quantity where its

AVC(average variable cost) is minimum (4 P)• Calculate the shut down point for the monopolist (4 P)

• Tom has a monthly income of 1200 TL. Assume that, Tom can only buy two products A and B in the market.

• PA=100 TL ; PB=200 TL. The total utility Tom will get by consuming these products is given below:

QA TUA MUA MUA/PA QB TUB MUB MUB/PB

0 0 0 0 1 2000 1 4000 2 3900 2 7500 3 5700 3 10500 4 7400 4 13000 5 9000 5 15000 6 10500 6 16500 7 11900 7 17500 8 13200 8 18000 9 14400 9 18000 10 15500 10 17500 11 16500 11 16500 12 17400 12 15000

• a)What will be the max. total utility Tom will gain when he spends all of his money ( 6 P)

• b) Assume now Tom’s income has become 2300 TL and the price of A has risen to 120 TL and the price of good B has fallen to 180 TL(PA=120 TL ;PB=180 TL). If the marginal utility of money MUTL=10 , how much can Tom save? ( 8 P) ,what could be his max. total utility( 2 P)

• c)Assumption: Tom’s income=1200 TL , PA=120 TL ; PB=180 TL .Tom will spend all of his money. Calculate the price elasticity of demand based on averages for good B by taking the quantities of B in question a and c into consideration( What is the change in quantity of B in question c compared to question a (10 P)

1.midterm-extra• SECTION A(20 P)• Fill in the gaps with the most appropriate word or phrases.• 1. The __kinked demand curve_____model is a model of oligopoly in

which the following assumption has been made: Competitive firms will follow if a single firm cuts price but will not follow if a single firm raises price.(3 P)

• 2. The__ long run_____ is a period of time for which there are no fixed factors of production. Firms can increase or decrease scale of operation, and new firms can enter and existing firms can exit the industry.( 2 P)

• 3. The law of __diminishing marginal returns_____ states that: When additional units of a variable input are added to fixed inputs, the marginal product of the variable input declines. ( 3 P)

• 4. To isolate the impact of one single factor, we use the device of ___ceteris paribus______, or all else equal e.g If gasoline prices rise by 10 percent, how much less driving will there be, assuming no simultaneous change in the income, population, laws and all other remain constant (2 P)

• 5. __Normative____ economics is an approach to economics that seeks to understand behaviour and the operation of systems by making judgements

• e.g Tax should be imposed on tobacco in order to stop smoking (2 P)

• 6. A ___price floor____ is a minimum price below which exchange is not permitted.(2 P)

• 7. ___Rationing coupons______ are tickets that entitle individuals to purchase a certain amount of a given product per month. ( 2 P)

• 8. ___Shortage________, is the condition that exists when quantity demanded exceeds quantity supplied at the current price.(2 P)

• 9. __Substitutes____ are goods that can serve as replacements for one another(e.g tea and coffee) ; when the price of one increases , demand for the other __increases________.(2 P)

• SECTION B ( 22 P)• Choose the right answer from 5 multiple choices for

each question• 1.For which of the below given production factors ,

the payments that are made are given correctly• I. Land- Rent• II. Capital- Profit• III. Labor-Wage• I b)II c)III d) I and III e)I, II

and III• Answer: d

2. The graph drawn above shows the production costs of a perfectly competitive firm in a short run.If the price level is P3 , at which quantity of production does the firm have maximum average fixed costs? (4 p)a) Q0 b)Q1 c)Q2 d)Q3

e)Q4

Answer: a

• (4 p)3. A household’s decision about the quantity of a particular output to demand does depend on:

• I-The price of the inputs• II- The household’s amount of accumulated

wealth.• III- Technological advance• a)I b)II c)III d) I and II

e)II and III• Answer: b

• 5. Which of the factors given below has been regarded as a property of a monopolistic competition?

• (2 right answers) (6 p)• I.Full knowledge of product and price• II.Government franchises• III. Price leadership• IV.Price discrimination• V. Predatory pricing• VI. Homogenous product• VII. A few dominant firms• VIII. Efficient allocation of resources• IX. Quality competition• Answer: IV and IX

• SECTION C(68 p) • In an automobile industry, there is a single firm(company X)

producing motor bikes, • Number of machines operating: 55• Rental cost per machine : 3725 TL• Break even point , QB = 25

• Shut down point, QSH = 80 • Q=67,5 where AVC is minimum• Given the total revenue and total variable cost function for a

monopoly as:• • TR= 22500 Q – 209 Q2 ; TVC= C Q – B Q2 +A Q3 • The total product function TP= 18 L – L2 (L= Number of labor units)• The number of motor bikes produced per employee(AP) = 15

• Calculate A, B and C (12 P)• Calculate the maximum profit of the monopolist (8 P)• Calculate producer surplus for a monopoly (8 P)• Calculate deadweight (welfare) loss for a monopoly (10 P)• Calculate the operating profit/loss where the point price elasticity of

demand EP= - 0,8 (8 P)• Assume now a new firm (company Y) has entered the market operating

at a quantity where its AVC is minimum and AVC=3375 TL and having a total product function TP= .(L=labor units) with a total fixed cost of 184.000 TL, what would be its profit margin( when he used the same TR function as the firm X. (6 P)

• Calculate the economies of scale (4P) and AC(average cost) in the long run (6 P)when the firm X decides to operate with 110 machines( % change in capital units= % change in labor units)

• Calculate the mid-point price elasticity of demand for the firm X(based on averages) using the data in question g (6 P)

2.midterm-section A(26 p)• Three of the major concerns of macroeconomics are: ___economic

growth_________, ____inflation______ and __unemployment______ (3 p)

• ___Hyperinflation_________ means a period of very rapid increases in the overall price level.(2 p)

• There are three kinds of policy that the government has used to influence the macroeconomy:

• ___fiscal policy________ , ___monetary policy___________ and _________supply side chain_________ policies(3 p)

• ___Gross national product_____ is the total market value of all final goods and services produced within a given period by factors of production owned by a country’s citizens, regardless of where the output is produced. (2 p)

• ___Depreciation_______ is the amount by which an asset’s value falls in a given period.(1 p)

• The use of fixed-price weights to estimate real GDP leads to problems because it ignores: ____structural changes_______ in the economy ;____supply shifts_________, which cause large decreases in price and the___substitution effect_____________ of price increases. (3 p)

• ___Gross national income____________ is the GNP converted into dollars using an average of currency exchange rates over several years adjusted for rates of inflation. It is used to make _____international comparison________ of output. (2 p)

• The ___consumer price index__________________ is a measuring tool used for the calculation of price changes and computed each month by the Bureau of Labor Statistics using a bundle that is meant to represent the “market basket” purchased monthly by the typical urban consumer.(3 p)

• ____Required reserve ratio_______ is the percentage of its total deposits that a bank must keep as reserves at the Federal Reserve. (3p)

• _____Open market operations________ is a tool used to expand or contract the amount of reserves in the system (purchase and sale of government’s securities ) and thus the __money multiplier_____.(2 p)

• If Government spendings exceeds Taxes , the government must borrow from the public to finance the ___deficit______. It does so by selling __treasury bonds_______.(2 p)

• SECTION B (25 P)• Which of the statements given below is true? (3 p)a)Planned injections mean savings plus taxesb)Private savings is the sum of investments and net export(Export –import)c) Stagnation is a period of persistent unemploymentd)A recession is a period during which aggregate output will risee) The balanced budget multiplier is one measure of the overall price levelAnswer: c

• What are the types of unemployment that exist only at the level of full employment? (3 p)

I.Cyclical unemploymentII. Frictional unemploymentIII. Structural unemployment• I b)II c) III d) I and III

e) II and III• Answer: e

• Which of the policy mixes given below may cause an increase in the real GDP definitely?(4 p)

I. Expansionary fiscal policy + expansionary monetary policyII. Expansionary fiscal policy + contractionary monetary policyIII. Contractionary fiscal policy +contractionary monetary policyIV. Contractionary fiscal policy + expansionary monetary policya) I b) III c) I and II d) II and IV

e) I and IIIAnswer: a

• 4. According to the Quantity theory brought about by classical economists, (4 p)

• I. The overall price level will increase when the velocity of money is decreased

• II. The real GDP will increase when the money supply is reduced

• III. The overall price level will fall down when money supply is reduced

• I b)II c)III d) I and II e)II and III

• Answer: c

• 5.Which of the given actions may cause an increase in the national savings? (4 p)

• I. Decrease in the imports• II. Increase in government spendings• III. Fall in the interest rate• I b)II c)III d) I and III

e) II and III• Answer: d

• 6. Which of the given actions may lead to an inflation? (4 p)

• I. Increase in taxes• II. Increase in the velocity of money• III. Decrease in the rate of unemployment• I b)II c)III d)I and II

e)II and III• Answer:e

• 7. Which of the statements given below is false? (3 p)• a) One of the cental bank’s functions is to provide funds for the

banks in trouble• b) Crowding out effect may appear if an increase in gross

domestic investments leads to a decrease in government spendings

• c) If the money multiplier has been increased, the amount of total deposits created in the economy will increase

• d) According to Keynes, it is not prices and wages that determine the level of employment, as classical models had suggested, but instead the level of aggregate demand for goods and services.

• e) A prolonged deep recession is called depression.• Answer: b

• The consumption function is given C= 80 + 0,6 Yd • Investment(I)= 140 billions TL• Government spendings(G)= 90 billions TL• Export(X)= 100 billions TL• Marginal propensity to import(m) = 0,24• Tax rate(t) = 0,3• Calculate the real GDP(aggregate output=YE) at the equilibrium (6 p)

• Calculate government spendings multiplier (kG=? ) (3 p)• How much more must the government spend in order to reach an aggregate output

of 550 billions TL at full employment (3 p)• Write the saving function ( 2 p)• Calculate the leakage at the equilibrium (3 p)• Calculate APC(average propensity to consume) at the equilibrium (3 p)• There is budget ______________ because taxes are ___________ than government

spendings (2 p)• There is foreign trade _______________ because exports are ______________ than

imports (2 p)• What must be the reduction in the tax rate (%) so that the GDP at full employment

YF= 550 billions TL can be achieved (6 p)

• Answer the questions using the table below

• Calculate the inflation rate(monthly) in April 2008 (3 p)• Calculate the inflation rate in 2009 ( 3 p)• The economists want to estimate the money supply in near future.

Therefore, they need to calculate the required reserve ratio of the central bank in future. The current required reserve ratio is 8%. The experts predict an annual growth rate of 6% in the economy. They also claim that the annual inflation rate from 2006 until 2012 will be equal to the change in the overall price level during the following years. The velocity of money(V) they will presume will be increasing by 10%

• Calculate the current money multiplier(MD) (2 p)• Calculate the annual inflation rate from 2006 until 2012 (4 p)• Calculate the change in money supply(Ms) in % ( 5 p)• Calculate the new required reserve ratio ( 2 p)

2.midterm-group B• SECTION A (25 p)• There are three reasons for demanding for money:

___transaction____ motive, ___speculation_______ motive and __precaution_____ motive. (3 p)

• Money is anything that is generally accepted as a medium of exchange . Its properties can be described as 1) __store of value___ which means an asset that can be used to transport purchasing power from one time period to another , 2) ___liquidity_ which shows that it is portable and readily accepted and easily exchanged for goods , 3) __unit of account__ that provides a consistent way of quoting prices.(3 p)

• __Cyclical _______ unemployment is the increase in unemployment that occurs during recessions and depressions.(2 p)

• Limitations to the GDP are : 1)If society is better off, a decrease in __crime_____ is not reflected in GDP, 2) An increase in __leisure____ is an increase in social welfare but it is not counted in GDP ; 3)____household________ activities are not counted in GDP; 4) ____underground_economy___ in which transactions take place and in which income is generated that is unreported and therefore not counted in GDP. (4 p)

• Overall price increases can be sensitive to the choice of the base year. For this reason, using ____fixed price weights____ to compute real GDP has some problems. (3 p)

• __Dividends_______ are the portion of a corporation’s profits that the firm pays out each period to its shareholders.(2 p)

• __Value added____ is the difference between the value of goods as they leave a stage of production and the cost of the goods as they entered that stage. (2 p)

• A __recession______, is the period in the business cycle from a peak down to a trough, during which output and employment fall.(2 p)

• ___Gross domestic product____is the total market value of all final goods and services produced within a given period by factors of production located within a country.(2 p)

• ___Stagflation______ occurs when the overall price level rises rapidly during periods of recession or high and persistent unemployment . (2 p)

SECTION B(24 p)1. Which of the following unemployment types do belong to the concept of natural unemployment? (4 P)I. Frictional unemploymentII. Structural unemploymentIII. Cyclical unemployment• a)I b)II c)III d)I and II e) II and IIIAnswer: d

• 2. Which of the following actions may cause crowding out effect? (4 p)

• I. Expansionary fiscal policy• II. Contractionary monetary policy• III.The policy mix of expansionary fiscal and

contractionary monetary policya)I b)II c)III d) I and II e)I and III• Answer: e

• 3. According to Keynesian theory, the real GDP rises when there is an increase in

• I. Velocity of money • II. Supply of money• III. Overall price levela)I b)II c)III d) I and IIe)II and III• Answer: b

• 4. Which of the actions given below may lead to a deflation?(4 P)

• I. Rise in the private savings by contractionary fiscal policy

• II. Fall in the level of unemployment• III. Increase in the required reserve ratio• I b)II c)III d)I and III

e)I,II and III• Answer: d

• 5.Which of the given actions may cause an increase in the planned injections? (4 P)

• a) Decrease in the money supply• b) Increase in capital and labor costs• c) Contractionary fiscal policy• d) Increase in the interest rate• e) Decrease in the demand for money• Answer: e

• 6. Which of the statements given below is false? (4 p)• a) Shares of stock include Social Security benefits,

veterans’ benefits, and welfare payments. • b) Leakage means the sum of savings and taxes• c) If the discount rate of the loan given by the central

bank is reduced, the nominal GDP will increase• d) Rise in the disposable personal income means rise

in both personal consumption and savings.• e)In order to decrease the money supply government

must sell treasury bonds.• Answer: a

SECTION C(51 p)YEAR POPULATION NOMINAL GDP(X106 TL) $/TL PARITY REAL GDP(X106 TL) 1998 70.203 70.203 1999 104.596 67.841 2000 166.658 72.436 2001 240.224 68.309 2002 66.006.300 350.476 1,52 72.520 2003 66.878.921 454.781 1,491 76.338 2004 67.728.487 559.033 1,432 83.486 2005 68.579.547 648.932 1,347 90.500 2006 69.422.260 758.391 1,44 96.738 2007 70.243.123 843.178 1,3 101.255 2008 71.081.800 950.534 1,281 101.922 2009 71.893.565 952.559 1,544 97.003 2010 72.587.360 1.098.799 1,502 105.886 2011 73.946.573 1.294.893 1,677 114.874

1.What is the GNI per capita in $ for the year 2010? (4 p)2.What is the growth rate (%) in 2007? (4 p)3.Calculate the annual growth rate from 2004 until 2008 (4 p)4.What is the inflation rate in 2005? (6 p)5.For the year 2011, the overall price level of Turkey= 57 ; the overall price level of Denmark= 147. What must be the monthly income of a citizen in Denmark in TL, when he earns 5000 TL salary in Turkey and wants to have the same living standards as in Turkey, when GNI per capita of Denmark = 41.920 $ in 2011 (6 p)

Billions TL GDP 360

Corporate profits 100 indirect taxes 110 Dividends 140 Personal Income taxes 120 Transfer payments 200 Payments of factor income to the rest of the world 80 Depreciation 70 Social insurance payments 90 Subsidies 50 Receipts of factor income from the rest of the world 120

6-Calculate Gross National Product(GNP) (4 p)7-Calculate Net National Product( NNP) (2 p)8-Calculate National Income (NI) (4 p)9-Calculate personal income(PI) (4 p)10-Calculate personal disposable income (Yd) (2 p)-If the consumption function is C= a + b Yd ; average propensity to consume(APC)= 0,9 and investment multiplier (11-Calculate a and b ( 6 p)12-What must be the increase/decrease in government spendings to increase the aggregate output (Y) by 68 billions TL using the balanced budget multiplier (5 p)