Please see the attached
Week 2 Assignment 10 Points
a) Calculate the GDP using only those numbers that may be relevant from the following numbers
Consumption $60B
Government purchases $10B
Taxes $15B
Private Sector Gross Investment $10B
Savings $10B
Imports $6B
Exports $8B
b) When we claim that economies can converge over time, what does it mean? List one argument for and one argument against the likelihood of convergence of economies over time. (Minimum 100 words)
c) If inflation rises unexpectedly by 5%, indicate for each of the following whether the economic actor is helped, hurt, or unaffected: (Write at least one sentence each to explain your reasoning)
i. A union member with a COLA wage contract
ii. Someone with a large stash of cash in a safe deposit box
iii. A bank lending money at a fixed rate of interest
iv. A person who is not due to receive a pay raise for another 11 months