Q1. Assume a small nation has following statistics: its consumption expenditure is $15 million, investment is $2 million, government purchases of goods and services is $1 million, exportof goods and services to foreigners is $1 million and import of goods and services from foreigners is $1.5 million. calculate this nations GDP.
Q2. The demand for cars is given by the function: QD = a - bP ; and supply is given by the function: S Q = c + P ; where D Q = quantity demanded, S Q = quantity supplied, P = price; and a, b and c are constants. Solve for the equilibrium price and quantity in the car market as functions of a, b and c.