Sample Exam 4 from the Fall 0f 2012
|
|
- Steven Flowers
- 5 years ago
- Views:
Transcription
1 ECON Introduction to Macroeconomics John Lovett Sample Exam 4 from the Fall 0f It s The U.S. is still a bit below it s normal rate of production but appears to be on it s way to recovery. Two economists sees the following headline; Americans are Starting to Save Significantly Higher % s of their Income Hillary states; Good. This is just what the U.S. economy needs. Hillary is: (Check any and all blanks that apply to Hillary based on her statement). (-1 per incorrect blank up to a max of -2) worried about short-run economic issues. worried about crowding out. worried about long-run economic issues. worried about the current great recession Draw a C graph showing what Hillary is happy about. You should indicate three situations: The economy s initial situation (use the subscript 2014) Where Hillary thinks the economy would go if Americans did NOT increase their savings. 1 Where Hillary thinks the economy will go now that Americans ARE increasing their savings Indira states; That s bad. This is not what the U.S. economy needs. Indira is: (Check any & all blanks that apply to Indira based on her statement). (-1 per incorrect blank up to a max of -2) worried about short-run economic issues. worried about crowding out. worried about long-run economic issues. worried about the current great recession Draw a C graph showing what Indira is worried about. You should indicate three situations: The economy s initial situation (use the subscript 2014) Where Indira thinks the economy would go if Americans did NOT increase their savings. Where Indira thinks the economy will go now that Americans ARE increasing their savings. 1 There are actually two correct answers for this. Hint: Hillary is worried about: 1 st ) Crowding out of Investment, and 2 nd ) how this crowding out of physical investment will affect very long run growth. 1
2 ECON Introduction to Macroeconomics John Lovett 10. Who is Janet Yellen? a. Yikes! I left out the answers. b. I hate it when that happens. c. Oh well. 11. Who is the main policy decision Janet Yellen is currently facing? a. Yikes! I left out the answers. b. I hate it when that happens. c. Oh well. 12. What did Janet Yellen and her organization recently decide regarding the above (11) decision? a. Not again. b. Yep, the answers are missing once again. Use the graph at right to answer question Assume that the natural rate of output Assume that the natural rate of output ( Nat ) for the U.S. does not change. Further, assume that the economy is initially at point Z. 13. Assume the U.S. dollar depreciates greatly, i.e. the dollar loses in value relative to other currencies. What will the short run effects of this be? Toward which point will the economy move in the short-run? 14. What is true of a typical firm s profits as the economy moves from point Z toward the new, short-run, equilibrium you indicated in # 13? a. profits < normal, pressure for output to rise b. profits < normal, pressure for output to fall c. profits > normal, pressure for output to rise Use the graph at right to answer question Assume that the natural rate of output Assume that the natural rate of output ( Nat ) for the U.S. does not change. Further, assume that the economy is initially at point Z. 15. Assume the EU, Japan, Canada and other major trading partners of the U.S enter a severe economic downturn. What will the short run effects of this be? Toward which point will the economy move in the short-run? 16. What is true of a typical firm s profits as the economy moves from point Z toward the new, short-run, equilibrium you indicated in # 15? a. profits < normal, pressure for output to rise b. profits < normal, pressure for output to fall c. profits > normal, pressure for output to rise d. profits > normal, pressure for output to fall e. none of the above d. profits > normal, pressure for output to fall e. none of the above 2
3 ECON Introduction to Macroeconomics John Lovett 17. What is true of labor markets at the new, short-run, equilibrium you indicated in # 17? a. U Actual > U Nat, pressure for wages to rise d. U Actual < U Nat, pressure for wages to fall b. U Actual > U Nat, pressure for wages to fall e. It depends on how far the curves shift. c. U Actual < U Nat, pressure for wages to rise 18. At right, draw a C diagram illustrating the changes in # s Assume the U.S. economy is initially at point Z. Then, due to political developments in Latin America the prices of raw metals such as iron, copper, aluminum, and rare earth metals, fall significantly. Toward which point will the economy move? 20. Assume that prices increase by 10%. Further assume that this increase was caused by strength in the demand side of the economy. Finally, assume that this increase in price was unanticipated. Which of the following would be a likely result in the short-run? a. Firms tend to be unresponsive to prices in the short-run. It takes them a while to figure out if the price of their product actually changed. They produce the same amount as before. b. Firms will want to raise their wages in order to encourage more work effort. However, they will not be able to do this in the short-run. Instead, they will cut production. c. Wages rise by 10% and (real) profits are unchanged. Firms produce the same amount as before. d. Wages rise by more than 10% and (real) profits get smaller. Firms respond by producing less. e. Wages rise by less than 10% and (real) profits get larger. Firms respond by producing more. 3
4 ECON Introduction to Macroeconomics John Lovett 21. Draw a Final Goods and Services market diagram showing an economy that is operating such that Actual > Natural. Note: It s not U. Label this initial point; point Assume the federal government then passes a tax cut and greatly increases government spending. Toward which point will the economy move in the shortrun? Label your new curve(s) and point(s); point What is true of a typical firm s profits as the economy moves from point 1 to point 2, toward the new, short-run, equilibrium you indicated in # 23 (point 2)? a. profits > normal, pressure for output to rise b. profits > normal, pressure for output to fall c. profits < normal, pressure for output to rise d. profits < normal, pressure for output to fall e. none of the above 24. How did wages change as the economy moved from point 1 to point 2? a. Wages changed in the opposite direction as prices (If prices went up, wages fell. If prices went down, wages rose.) b. Wages did not change, or if they did change, changed little compared to the change in prices c. Wages changed as much as prices. 25. What is true of labor markets at the new, short-run, equilibrium at point 2? a. U Actual > U Natural, pressure for wages to rise d. U Actual < U Natural, pressure for wages to fall b. U Actual > U Natural, pressure for wages to fall e. none of the above c. U Actual < U Natural, pressure for wages to rise 26. At right, draw a C curve (or curves) illustrating the changes from point 1 to point 2. Hint: I m looking for specific axis labels on this one. 4
5 ECON Introduction to Macroeconomics Spring 2012 John Lovett 27 29: The country of Argos is currently experiencing an actual unemployment rate of 5.9%. Government economists estimate that Argos s natural unemployment rate is 7.0%. 27. How does Argos actual production ( Act ) likely compare to its normal capacity ( Nat )? a. Act < Nat b. Act = Nat c. Act > Nat d. none of the above 28. How does Argos Labor Force likely compare to the number of jobs, both filled and unfilled? a. Labor Force < Jobs b. Labor Force = Jobs c. Labor Force > Jobs d. none of the above 29. What is likely going on with wages in Argos? a. There s downward pressure on wages. b. There s no abnormal pressure on wages. They are likely changing at their normal, long-run, rate. c. There s upward pressure on wages. 30. Which of the following best define Say s Law? a. When spending falls, the economy generally enters a recession. b. Investment spending (spending on physical investment) is the least stable type of spending. c. It is an economy s fundamental ability to produce that determines its level of real output. The amount of spending (i.e. Demand) only determines the price level, not real output. d. The poor s share (or %) of total income rises during a recession and falls during a bubble. e. The poor s share (or %) of total income falls during a recession and rises during a bubble. 31. In the Neo-Classical model, the major determinant of a typical person s spending is: a. the current interest rate. b. the current inflation rate. c. his or her expected long-run ability to earn. d. current levels of investment. e. his or her current income Describe the long-run interest rate adjustment process, as explained by Classical economists, by filling in the blanks below. (-1 pt per incorrect blank up to -3 pts total) A decrease in consumption spending means (less, more, the same amount of) savings. This change in savings means banks and other financial institutions have (less, more, the same amount of) money to lend than before. As a result, there is a (shortage, surplus, equilibrium) of loanable funds. This prompts banks to (increase, decrease, leave unchanged) real interest rates. This change in interest causes firms to borrow (less, more, the same amount of) to fund physical investment. This change in physical investment (offsets, exacerbates) the change in consumption spending that started this all. 5
6 ECON Introduction to Macroeconomics Spring 2012 John Lovett Describe the long-run wage adjustment process, as explained by Classical economists, by filling in the blanks below. (-1 pt per incorrect blank up to -4 pts total) An increase in spending causes prices to (rise, fall, remain unchanged). Since firms are selling their products for these new prices. At given wage rate, firms want to hire (more, less, the same amount as before) labor. i.e. demand for labor (increases, decreases, is unchanged). In the meantime, wages (increase, decrease, are unchanged) and, in the short-run, (more, less, the same amount as before) workers than usual are hired. Eventually (i.e. in the long-run), however, wages (increase, decrease, are unchanged). This change in wages causes firms to (increase, decrease, not change) the amount of labor they hire. Once wages fully adjust, hiring and production are (more than, less then, the same amount as) they were at the beginning before the increase in spending. 37. Assume the economy is in a mild recession and the government has just increased its spending by $50 billion. What would a hard core Non-Activist (Neo-Classical) economist think of this rise in government spending? a. Long-term growth will be hindered because the government is taking away resources the private sector needs. b. Total spending in the economy will increase, but only by $50 billion. ro-cyclical discretionary policy is needed to further stimulate the economy. c. Total spending in the economy will increase by more than $50 billion. This is because of respending effects. d. The value of the dollar will fall significantly and total spending will fall greatly. 38. Economist 1 states; I believe market psychology makes investment spending highly volatile. Economist 2 states; I believe insufficient aggregate demand will occur frequently in the private sector. Identify the economists. a. Both economists are probably Activist economists. b. Both economists are probably Non-Activist economists. c. Economist 1 is probably a Non-Activist. Economist 2 is a probably an Activist. d. Economist 1 is probably a Activist. Economist 2 is a probably a Non-Activist. e. none of the above 39. Julie and John just received an $1,800 tax rebate. They decide to spend almost of it on new goods and services instead of saving it (or paying down their debt). Julie and John are: a. behaving most like the Non-Activists or Neo-Classicals predict. b. behaving most like the Keynesians or Activists predict. c. behaving most like an economist from the German Historical School would predict. 6
7 ECON Introduction to Macroeconomics Spring 2012 John Lovett # s 40 42: Assume the U.S. is initially at point 1 as indicated at right. 40. What policy would a Classical economist recommend to address the situation? a. No active government intervention is needed. b. The government should increase spending and cut taxes. c. The government should decrease spending and raise taxes. 41. What policy would a Keynesian economist recommend to address the situation? a. No active govt intervention is needed. b. The govt should increase spending and cut taxes. c. The govt should decrease spending and raise taxes. Good 2 C Nikki is a hard-core Neo-classical economist. The economy is currently in a severe recession. What does Nikki think about the Fed adopting a policy of giving the economy Good 1 monetary stimulus during recession? Nikki thinks: a. this policy would be appropriate and would lead to shorter and milder recessions. b. That while monetary policy will make the economy more stable (ex. decrease the length and severity of the recession, it is not worth it in the long-run. c. Monetary policy will not affect the economy s stability. Whether or not the active use monetary policy is adopted will not affect the length or severity of a recession. d. Nikki thinks that the active use of monetary policy will actually destabilize the economy. Recessions will be more frequent and more severe. 43. Assume there is no active government intervention to stabilize (or de-stabilize) the economy. Further, assume the economy was expecting 0% inflation prior to the recession. According to Non- Activist economists, which of the diagrams below best describes the first two years of a typical recession? a. b. c. d. Year 1 Year 0 Year 2 Year 1 Year 2 Year 0 Year 1 Year 2 Year 0 Year 1 Year 0 Year 2 ot ot ot ot 44. Ben is a typical person. Assume that, thanks to a booming economy, Ben works a lot of overtime at work. In April, his disposable income rises by $700 a month. Ben suspects that the increase is probably only temporary. A Non-activist would predict that, in April, Ben s spending will (pick the one best answer): a. fall by $1,200 b. fall by $600 c. fall by $100 d. increase by $50 e. increase by $600 f. increase by $1,200 7
8 ECON Introduction to Macroeconomics Spring 2012 John Lovett Indicate () which school each economist likely belongs to based on their statements. Use one and only one check per row. One has been done for you. Use only one check per row. Statement Anti-Centrist Classical Keynesian Neo-Benthamite 45. Individuals and firms react to the here and now. Spending falls greatly during waves of pessimism and increases significantly during times of irrational exuberance. 46. During recessions, spending falls and savings increases. The financial sector, now awash in savings, cuts interest rates, thereby boosting borrowing and spending. 47. Without government intervention, recessions are infrequent, mild, and short-lived. (This one has been done for you because, while the book covers it, I m not sure we will get to it in class.) 48. Government cannot be trusted to do or even know what is right for the economy. # s Oh the many choices! Assume the economy is initially at point Z as shown t right. A B 49. At point Z, there is pressure for wages to: a. rise. b. remain unchanged. c. fall. 50. Assume labor markets adjust the way you indicated in the question 49? If the economy reacts the way Classical/neo-Classical economists believe, toward which point will the economy move? H G Z C D F E Nat 8
III. 9. IS LM: the basic framework to understand macro policy continued Text, ch 11
Objectives: To apply IS-LM analysis to understand the causes of short-run fluctuations in real GDP and the short-run impact of monetary and fiscal policies on the economy. To use the IS-LM model to analyse
More informationTHE INFLUENCE OF MONETARY AND FISCAL POLICY ON AGGREGATE DEMAND
20 THE INFLUENCE OF MONETARY AND FISCAL POLICY ON AGGREGATE DEMAND LEARNING OBJECTIVES: By the end of this chapter, students should understand: the theory of liquidity preference as a short-run theory
More informationEcon 100B: Macroeconomic Analysis Fall 2008
Econ 100B: Macroeconomic Analysis Fall 2008 Problem Set #7 ANSWERS (Due September 24-25, 2008) A. Small Open Economy Saving-Investment Model: 1. Clearly and accurately draw and label a diagram of the Small
More informationSuggested Solutions to Problem Set 7
Econ 154b Spring 2005 Question 1 Suggested Solutions to Problem Set 7 The IS curve is Y C d I d G 600 0.8ŸY"1000 "500r 400"500r 1000, so 0.2Y 1200"1000r. This is plotted below: Since= e 0, the nominal
More informationGovernment Budget and Fiscal Policy CHAPTER
Government Budget and Fiscal Policy 11 CHAPTER The National Budget The national budget is the annual statement of the government s expenditures and tax revenues. Fiscal policy is the use of the national
More informationEconomic 100B Macroeconomic Analysis Professor Steven Wood. Exam #3 ANSWERS
Name: SID : Discussion Section: Economic 100B Macroeconomic Analysis Professor Steven Wood Spring 2008 Exam #3 ANSWERS Please sign the following oath: The answers on this test are entirely my own work.
More informationSuggested Answers Problem Set # 5 Economics 501 Daniel
1. Use graphs of IS-LM-FE and AS-AD models to explain why RBC models with productivity shocks and money-supply shocks fail to explain the pro-cyclicality of money growth and inflation. Inflation falls
More informationMACROECONOMICS - EXAM IV
MACROECONOMICS - EXAM IV Fall 2004 G. Garesché 1. a. Define a speculative bubble. What conditions must exist for a speculative bubble to occur? Give two examples of speculative bubbles which have occurred
More informationTHE INFLUENCE OF MONETARY AND FISCAL POLICY ON AGGREGATE DEMAND
21 THE INFLUENCE OF MONETARY AND FISCAL POLICY ON AGGREGATE DEMAND LEARNING OBJECTIVES: By the end of this chapter, students should understand: the theory of liquidity preference as a short-run theory
More informationECON 201: Introduction to Macroeconomics Professor Robert Gordon Final Exam: March 18, 2016
ECON 201: Introduction to Macroeconomics Professor Robert Gordon Final Exam: March 18, 2016 NAME Directions: This test is in two parts, a multiple choice question part and a short-answer part. Use this
More information10 AGGREGATE SUPPLY AND AGGREGATE DEMAND* Chapt er. Key Concepts. Aggregate Supply1
Chapt er 10 AGGREGATE SUPPLY AND AGGREGATE DEMAND* Aggregate Supply1 Key Concepts The aggregate supply/aggregate demand model is used to determine how real GDP and the price level are determined and why
More informationThe Influence of Monetary and Fiscal Policy on Aggregate Demand
Chapter 32 The Influence of Monetary and Fiscal Policy on Aggregate Demand Test B 1. Of the effects that help explain why the U.S. aggregate demand curve slopes downward the a. wealth effect is most important
More informationECON Intermediate Macroeconomic Theory
ECON 3510 - Intermediate Macroeconomic Theory Fall 2015 Mankiw, Macroeconomics, 8th ed., Chapter 12 Chapter 12: Aggregate Demand 2: Applying the IS-LM Model Key points: Policy in the IS LM model: Monetary
More informationEC and MIDTERM EXAM I. March 26, 2015
EC102.03 and 102.05 Spring 2015 Instructions: MIDTERM EXAM I March 26, 2015 NAME: ID #: You have 80 minutes to complete the exam. There will be no extensions. The exam consists of 40 multiple choice questions.
More informationEcon 222 Midterm exam Spring 2011 Group A
Econ 222 Midterm exam Spring 2011 Group A Answers May 2011 1 Short answer questions (36 marks) Answer SIX out of SEVEN questions. 1. An increase in expected future output while holding today s output constant
More informationECON 3010 Intermediate Macroeconomics Final Exam
ECON 3010 Intermediate Macroeconomics Final Exam Multiple Choice Questions. (60 points; 2 pts each) #1. Which of the following is a stock variable? a) wealth b) consumption c) investment d) income #2.
More informationECO 209Y MACROECONOMIC THEORY AND POLICY
Department of Economics Prof. Gustavo Indart University of Toronto March 14, 2007 ECO 209Y MACROECONOMIC THEORY AND POLICY SOLUTION Term Test #3 LAST NAME FIRST NAME STUDENT NUMBER Circle the section of
More informationEastern Mediterranean University Faculty of Business and Economics Department of Economics Spring Semester
Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2015-16 Spring Semester Duration: 90 minutes ECON102 - Introduction to Economics II Final Exam Type A 2 June 2016
More informationExpansions (periods of. positive economic growth)
Practice Problems IV EC 102.03 Questions 1. Comparing GDP growth with its trend, what do the deviations from the trend reflect? How is recession informally defined? Periods of positive growth in GDP (above
More informationAGGREGATE SUPPLY, AGGREGATE DEMAND, AND INFLATION: PUTTING IT ALL TOGETHER Macroeconomics in Context (Goodwin, et al.)
Chapter 13 AGGREGATE SUPPLY, AGGREGATE DEMAND, AND INFLATION: PUTTING IT ALL TOGETHER Macroeconomics in Context (Goodwin, et al.) Chapter Overview This chapter introduces you to the "Aggregate Supply /Aggregate
More informationCOURSE MACROECONOMICS EXAM #2 (Two Hours) NOVEMBER 7, 2017
COURSE 180.101 MACROECONOMICS EXAM #2 (Two Hours) NOVEMBER 7, 2017 NAME TA* *Two points if you write down the name of your TA Section I (20 points) (2 pts each) 1. Name both the outgoing Chair and the
More informationThe Influence of Monetary and Fiscal Policy on Aggregate Demand P R I N C I P L E S O F. N. Gregory Mankiw. Introduction
C H A P T E R 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand P R I N C I P L E S O F Economics N. Gregory Mankiw Introduction This chapter focuses on the short-run effects of fiscal
More informationIn this chapter, look for the answers to these questions
In this chapter, look for the answers to these questions How does the interest-rate effect help explain the slope of the aggregate-demand curve? How can the central bank use monetary policy to shift the
More informationDEPARTMENT OF ECONOMICS. University of New Hampshire. ECON 401 Principles of Macroeconomics FINAL EXAM. O. Kozlova. Spring 2011
DEPARTMENT OF ECONOMICS University of New Hampshire ECON 401 Principles of Macroeconomics FINAL EXAM O. Kozlova Spring 2011 INSTRUCTIONS: 1. Before you begin, make sure you have all pages of examination
More informationAnswers to Questions: Chapter 8
Answers to Questions in Textbook 1 Answers to Questions: Chapter 8 1. In microeconomics, the demand curve shows the various quantities of a specific product that a consumer wants at various prices for
More informationECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING Prof. Bill Even FORM 3. Directions
1 ECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING 2013 Prof. Bill Even FORM 3 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationTHE AD (AGGREGATE DEMAND) / AS (AGGREGATE SUPPLY) MACRO MODEL
THE AD (AGGREGATE DEMAND) / AS (AGGREGATE SUPPLY) MACRO MODEL Again, we visit the supply and demand framework. However, when applied to Macroeconomics, we use the following terms in setting up our graph:
More informationEconomic 100B Macroeconomic Analysis Professor Steven Wood. Exam #2 ANSWERS
Name: SID: Discussion Section: GSI: Economic 100B Macroeconomic Analysis Professor Steven Wood Fall 2008 Exam #2 ANSWERS Please sign the following oath: The answers on this test are entirely my own work.
More informationECO202: PRINCIPLES OF MACROECONOMICS FIRST MIDTERM EXAM SPRING 2014 Prof. Bill Even FORM 3. Directions
ECO202: PRINCIPLES OF MACROECONOMICS FIRST MIDTERM EXAM SPRING 2014 Prof. Bill Even FORM 3 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationECON Intermediate Macroeconomics (Professor Gordon) Second Midterm Examination: Fall 2015 Answer sheet
ECON 311 - Intermediate Macroeconomics (Professor Gordon) Second Midterm Examination: Fall 2015 Answer sheet YOUR NAME: Student ID: Circle the TA session you attend: INSTRUCTIONS: Chris 10AM Michael -
More informationECON Intermediate Macroeconomics (Professor Gordon) Second Midterm Examination: Fall 2013 Answer sheet
ECON 311 - Intermediate Macroeconomics (Professor Gordon) Second Midterm Examination: Fall 2013 Answer sheet YOUR NAME: Student ID: Circle the TA session you attend: Chris - 10AM Chris - 1PM Andreas -
More informationEcon 102 Exam 2 Name ID Section Number
Econ 102 Exam 2 Name ID Section Number 1. Suppose investment spending increases by $50 billion and as a result the equilibrium income increases by $200 billion. The investment multiplier is: A) 10. B)
More informationUse the following to answer question 15: AE0 AE1. Real expenditures. Real income. Page 3
Chapter 10 1. An example of an autonomous consumption policy is a policy that A) lowers tax rates to stimulate additional consumer spending. B) makes credit more widely available to consumers in order
More informationEconomics 1012A: Introduction to Macroeconomics FALL 2007 Dr. R. E. Mueller Third Midterm Examination November 15, 2007
Economics 1012A: Introduction to Macroeconomics FALL 2007 Dr. R. E. Mueller Third Midterm Examination November 15, 2007 Answer all of the following questions by selecting the most appropriate answer on
More informationEcon 20B Spr 2008 Sample Final Exam
Econ 20B Spr 2008 Sample Final Exam Prof. Min Ouyang Please Do this sample final exam before looking at the answer key!!! Time limit: 120 minutes Instructions: 1) The exam is closed book. 2) Final exam
More informationEcon 102 Final Exam Name ID Section Number
Econ 102 Final Exam Name ID Section Number 1. Which of the following is not an accurate statement of core capital goods? A) proxy for business investments B) does not include transportation equipment C)
More informationProblem Set # 8, ID s
Problem Set # 8, ID s 1250-2499 Aggregate Demand and Aggregate Supply in the Real World Name: Overview: In this problem set, you will apply what you know about Aggregate Demand and Aggregate Supply to
More informationECON 3312 Macroeconomics Exam 2 Spring 2017 Prof. Crowder
ECON 3312 Macroeconomics Exam 2 Spring 2017 Prof. Crowder Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Suppose the economy is currently
More informationECON Drexel University Summer 2008 Assignment 2. Due date: July 29, 2008
ECON 202-001 Drexel University Summer 2008 Assignment 2 Due date: July 29, 2008 Instructor: Yuan Yuan Name This homework has up to 10 points bonus. Question 1 (40 points, 2 points each): MULTIPLE CHOICE.
More informationMacroeconomics Sixth Edition
N. Gregory Mankiw Principles of Macroeconomics Sixth Edition 21 The Influence of Monetary and Fiscal Policy on Aggregate Demand Premium PowerPoint Slides by Ron Cronovich 2012 UPDATE In this chapter, look
More informationTest 2 Economics 322 Chappell March 22, 2007
Test 2 Economics 322 Chappell March 22, 2007 Name Last 4 Digits This test has two parts. There are 20 multiple choice questions at 3 points each (60 points total). There are three analytical questions,
More information1. What was the unemployment rate in December 2001?
EC2105, Spring 2002 Weekly Quiz 1 (January 16, 2002) 1. What was the unemployment rate in December 2001? 2. When the Fed meets later this month and decides whether to lower interest rates, it is conducting:
More informationEconomics 102 Summer 2014 Answers to Homework #5 Due June 21, 2017
Economics 102 Summer 2014 Answers to Homework #5 Due June 21, 2017 Directions: The homework will be collected in a box before the lecture. Please place your name, TA name and section number on top of the
More informationThe Aggregate Expenditures Model. A continuing look at Macroeconomics
The Aggregate Expenditures Model A continuing look at Macroeconomics The first macroeconomic model The Aggregate Expenditures Model What determines the demand for real domestic output (GDP) and how an
More informationModule 19 Equilibrium in the Aggregate Demand Aggregate Supply Model
What you will learn in this Module: The difference between short-run and long-run macroeconomic equilibrium The causes and effects of demand shocks and supply shocks How to determine if an economy is experiencing
More informationMidterm #2, version A, given Spring 2002 Note question #50 is from Chapter 11, which students are not responsible for on Exam 2 - Summer 02.
Midterm #2, version A, given Spring 2002 Note question #50 is from Chapter 11, which students are not responsible for on Exam 2 - Summer 02. Answers (if you think you see an error, please contact me ASAP.
More informationINFLATION, JOBS, AND THE BUSINESS CYCLE*
Chapt er 12 INFLATION, JOBS, AND THE BUSINESS CYCLE* Key Concepts Inflation Cycles1 In the long run inflation occurs because the quantity of money grows faster than potential GDP. Inflation can start as
More informationECON 1002 E. Come to the PASS workshop with your mock exam complete. During the workshop you can work with other students to review your work.
It is most beneficial to you to write this mock midterm UNDER EXAM CONDITIONS. This means: Complete the midterm in 2.5 hour(s). Work on your own. Keep your notes and textbook closed. Attempt every question.
More informationThe Influence of Monetary and Fiscal Policy on Aggregate Demand. Premium PowerPoint Slides by Ron Cronovich
C H A P T E R 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand Economics P R I N C I P L E S O F N. Gregory Mankiw Premium PowerPoint Slides by Ron Cronovich 2009 South-Western, a part
More informationLesson 12 The Influence of Monetary and Fiscal Policy on Aggregate Demand
Lesson 12 The Influence of Monetary and Fiscal Policy on Aggregate Demand Henan University of Technology Sino-British College Transfer Abroad Undergraduate Programme 0 In this lesson, look for the answers
More informationIntermediate Macroeconomic Theory / Macroeconomic Analysis (ECON 3560/5040) Midterm Exam (Answers)
Intermediate Macroeconomic Theory / Macroeconomic Analysis (ECON 3560/5040) Midterm Exam (Answers) Part A (15 points) State whether you think each of the following questions is true (T), false (F), or
More informationThe Aggregate Demand/Aggregate Supply Model
CHAPTER 27 The Aggregate Demand/Aggregate Supply Model The Theory of Economics... is a method rather than a doctrine, an apparatus of the mind, a technique of thinking which helps its possessor to draw
More informationEcon 3 Practice Final Exam
Econ 3 Winter 2010 Econ 3 Practice Final Exam No books or notes of any kind are allowed. On problems requiring calculations, you will only get credit if you show your work. Part I: Longer Answers. Please
More informationMacroeconomics, Spring 2007, Exam 3, several versions, Late April-Early May
Name: _ Days/Times Class Meets: Today s Date: Macroeconomics, Spring 2007, Exam 3, several versions, Late April-Early May Read these Instructions carefully! You must follow them exactly! I) On your Scantron
More information4. SOME KEYNESIAN ANALYSIS
4. SOME KEYNESIAN ANALYSIS Fiscal and Monetary Policy... 2 Some Basic Relationships... 2 Floating Exchange Rates and the United States... 7 Fixed Exchange Rates and France... 11 The J-Curve Pattern of
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Exam - Version A Name 1) Full-employment output is: A) the level of output that is produced when there is no voluntary unemployment. B) the level of output that is produced when the unemployment rate is
More informationTable 9-2. Base Year (2006) 2013 Product Quantity Price Price Milk 50 $2 $3 Bread 100 $3 $3.50
1) The advice to "keep searching, there are plenty of jobs around here for which you are qualified," would be most appropriate for which of the following types of unemployment? A) frictional unemployment
More informationA. What is the value of the tax increase multiplier if the MPC is.80? B. Consumption changes by 400 and disposable income by 100. What is the MPC?
KOFA HIGH SCHOOL SOCIAL SCIENCES DEPARTMENT AP ECONOMICS EXAM PREP WORKSHOP # 3 > AGGREGATE DEMAND AND SUPY NAME : DATE : 1. Figure out the following multiplier questions : A. What is the value of the
More informationUGBA 101B Macroeconomic Analysis Professor Steven Wood. Exam #2 ANSWERS
Name: SID : UGBA 101B Macroeconomic Analysis Professor Steven Wood Summer 2008 Exam #2 ANSWERS Please sign the following oath: The answers on this test are entirely my own work. I neither gave nor received
More informationEconomics 102 Discussion Handout Week 14 Spring Aggregate Supply and Demand: Summary
Economics 102 Discussion Handout Week 14 Spring 2018 Aggregate Supply and Demand: Summary The Aggregate Demand Curve The aggregate demand curve (AD) shows the relationship between the aggregate price level
More informationMacroeconomics Mankiw 6th Edition
N. Gregory Mankiw Lecture notes, ECON 1150 Macroeconomics Mankiw 6th Edition 21 & 22 The Influence of Monetary and Fiscal Policy on Aggregate Demand Premium PowerPoint Slides by Ron Cronovich 2012 UPDATE
More information9. In the figure, at an interest rate of 4 percent, the
Econ 1204 001 Final Exam All questions are worth 10 points and must go on a blue scantron. They will not be scored on this exam or on another color scantron. 1. Trade between countries a. allows each country
More informationSyllabus item: 113 Weight: 3
Macroeconomics - 2.4 Fiscal policy Syllabus item: 113 Weight: 3 113. Sources of government revenue IB Question Explain that the government earns revenue primarily from taxes (direct and indirect), as well
More informationECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING Prof. Bill Even FORM 1. Directions
ECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING 2014 Prof. Bill Even FORM 1 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING Prof. Bill Even FORM 2. Directions
ECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING 2014 Prof. Bill Even FORM 2 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More information15 th. edition Gwartney Stroup Sobel Macpherson. First page. edition Gwartney Stroup Sobel Macpherson
Alternative Views of Fiscal Policy An Overview GWARTNEY STROUP SOBEL MACPHERSON Fiscal Policy, Incentives, and Secondary Effects Full Length Text Part: 3 Macro Only Text Part: 3 Chapter: 12 Chapter: 12
More informationChapter 13. Aggregate Demand and Aggregate Supply
Chapter 13 Aggregate Demand and Aggregate Supply 1 Output and Price Level Figure 1 Two-Way Relationship Between Output and Price Level Aggregate Demand Curve Price Level Real GDP Aggregate Supply Curve
More informationECO202: PRINCIPLES OF MACROECONOMICS FIRST MIDTERM EXAM SPRING 2015 Prof. Bill Even FORM 4. Directions
ECO202: PRINCIPLES OF MACROECONOMICS FIRST MIDTERM EXAM SPRING 2015 Prof. Bill Even FORM 4 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationECO202: PRINCIPLES OF MACROECONOMICS FIRST MIDTERM EXAM SPRING 2015 Prof. Bill Even FORM 3. Directions
ECO202: PRINCIPLES OF MACROECONOMICS FIRST MIDTERM EXAM SPRING 2015 Prof. Bill Even FORM 3 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationECO202: PRINCIPLES OF MACROECONOMICS FIRST MIDTERM EXAM SPRING 2015 Prof. Bill Even FORM 1. Directions
ECO202: PRINCIPLES OF MACROECONOMICS FIRST MIDTERM EXAM SPRING 2015 Prof. Bill Even FORM 1 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING 2009 Prof. Bill Even FORM 1. Directions
ECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING 2009 Prof. Bill Even FORM 1 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING 2009 Prof. Bill Even FORM 4. Directions
ECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM SPRING 2009 Prof. Bill Even FORM 4 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationMidsummer Examinations 2013
Midsummer Examinations 2013 No. of Pages: 7 No. of Questions: 34 Subject ECONOMICS Title of Paper MACROECONOMICS Time Allowed Two Hours (2 Hours) Instructions to candidates This paper is in two sections.
More informationEconomics 102 Discussion Handout Week 14 Spring Aggregate Supply and Demand: Summary
Economics 102 Discussion Handout Week 14 Spring 2018 Aggregate Supply and Demand: Summary The Aggregate Demand Curve The aggregate demand curve (AD) shows the relationship between the aggregate price level
More informationA. unchanged decrease B. surplus decrease C. unchanged no change D. surplus increase E. unchanged increase A. A B. B C. C D. D E. E.
AP Macroeconomics Test (Answers on last Page) 1. Which of the following correctly describes the components of Aggregate Demand? A. Consumption expenditures + Investment expenditures + Government expenditures
More informationExpansionary Fiscal Policy 2. If the economy is experiencing a recession what type of fiscal policy would be in order?
Stabilization Policies Reading Guide Chapters 12, 16, and 18 Chapter 12: Fiscal Policy 1. Assess the effect of fiscal policy on real output, price level, and the level of employment in the long run and
More informationProfessor Christina Romer SUGGESTED ANSWERS TO PROBLEM SET 5
Economics 2 Spring 2016 Professor Christina Romer Professor David Romer SUGGESTED ANSWERS TO PROBLEM SET 5 1. The left-hand diagram below shows the situation when there is a negotiated real wage,, that
More informationECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM Summer Prof. Bill Even FORM 1. Directions
ECO202: PRINCIPLES OF MACROECONOMICS SECOND MIDTERM EXAM Summer 2014 Prof. Bill Even FORM 1 Directions 1. Fill in your scantron with your unique id and form number. Doing this properly is worth the equivalent
More informationDisclaimer: This resource package is for studying purposes only EDUCATION
Disclaimer: This resource package is for studying purposes only EDUCATION Ch 26: Aggregate Demand and Aggregate Supply Aggregate Supply Purpose of aggregate supply: aggregate demand model is to explain
More informationArchimedean Upper Conservatory Economics, October 2016
Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The marginal propensity to consume is equal to: A. the proportion of consumer spending as a function of
More informationBoğaziçi University, Department of Economics Spring 2016 EC 102 PRINCIPLES of MACROECONOMICS FINAL , Saturday 10:00 TYPE A
NAME: NO: SECTION: Boğaziçi University, Department of Economics Spring 2016 EC 102 PRINCIPLES of MACROECONOMICS FINAL 21.05.2016, Saturday 10:00 TYPE A Turn off your cell phone and put it away. During
More informationExam #3 (Final Exam) Solution Notes Spring, 2011
Economics 1021, Section 1 Prof. Steve Fazzari Exam #3 (Final Exam) Solution Notes Spring, 2011 MULTIPLE CHOICE (5 points each) Write the letter of the alternative that best answers the question in the
More informationCHAPTER 23 OUTPUT AND PRICES IN THE SHORT RUN
CHAPTER 23 OUTPUT AND PRICES IN THE SHORT RUN Expand model to make price level endogenous variable. LEARNING OBJECTIVES - Why exogenous change in price level shifts AE curve and changes equilibrium level
More informationUniversity of Toronto December 3, 2010 ECO 209Y MACROECONOMIC THEORY AND POLICY. Term Test #2 L0101 L0301 L0401 M 2-4 W 2-4 R 2-4
Department of Economics Prof. Gustavo Indart University of Toronto December 3, 2010 ECO 209Y MACROECONOMIC THEORY AND POLICY SOLUTIONS Term Test #2 LAST NAME FIRST NAME STUDENT NUMBER Circle your section
More informationECON 3010 Intermediate Macroeconomics Solutions to the Final Exam
ECON 3010 Intermediate Macroeconomics Solutions to the Final Exam Multiple Choice Questions. (60 points; 2 pts each) #1. Which of the following is a stock variable? a) wealth b) consumption c) investment
More informationQuestions and Answers. Intermediate Macroeconomics. Second Year
Questions and Answers Intermediate Macroeconomics Second Year Chapter2 Q1: MCQ 1) If the quantity of money increases, the A) price level rises and the AD curve does not shift. B) AD curve shifts leftward
More informationAP Macroeconomics Unit 5 & 6 Review Session
AP Macroeconomics Unit 5 & 6 Review Session Stabilization Policies 1. Use the AD-AS model to answer this question. The economy of Macroland is initially in long-run equilibrium. Then the central bank of
More informationTOPIC 7. Unemployment, Inflation and Economic Policy
TOPIC 7 Unemployment, Inflation and Economic Policy What is Equilibrium for the Economy? Short run equilibrium: AD = SRAS and IS = LM The Labor Market need not be in equilibrium We need not be at the potential
More informationObjectives for Chapter 24: Monetarism (Continued) Chapter 24: The Basic Theory of Monetarism (Continued) (latest revision October 2004)
1 Objectives for Chapter 24: Monetarism (Continued) At the end of Chapter 24, you will be able to answer the following: 1. What is the short-run? 2. Use the theory of job searching in a period of unanticipated
More informationECO 209Y MACROECONOMIC THEORY AND POLICY. Term Test #3. February 12, 2018
ECO 209Y MACROECONOMIC THEORY AND POLICY Term Test #3 February 12, 2018 U of T E-MAIL: @MAIL.UTORONTO.CA SURNAME (LAST NAME): GIVEN NAME (FIRST NAME): UTORID (e.g., LIHAO118): INSTRUCTIONS: The total time
More informationLecture 22. Aggregate demand and aggregate supply
Lecture 22 Aggregate demand and aggregate supply By the end of this lecture, you should understand: three key facts about short-run economic fluctuations how the economy in the short run differs from the
More informationMacroeconomics I Exam Revision. Part A: Week Four Economic Growth Based on Week Three Lectures [Also refer to Chapter 20]
Macroeconomics I Exam Revision Part A: Week Four Economic Growth Based on Week Three Lectures [Also refer to Chapter 20] Section 1: Lecture One 1. What is the difference between nominal GDP and real GDP?
More informationMacroeconomics and the Global Economic Environment (FNCE 613) SAMPLE EXAM 1
Macroeconomics and the Global Economic Environment (FNCE 613) SAMPLE EXAM 1 Macroeconomics and the Global Economic Environment (FNCE 613) SAMPLE EXAM 1 NAME (IN BLOCK LETTERS) Class time (CIRCLE ONE):
More informationReview: Markets of Goods and Money
TOPIC 6 Putting the Economy Together Demand (IS-LM) 2 Review: Markets of Goods and Money 1) MARKET I : GOODS MARKET goods demand = C + I + G (+NX) = Y = goods supply (set by maximizing firms) as the interest
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
These 101 questions have been randomly selected (for the chapters eligible for examination) by the computer from the test bank that accompanies your text. Your prof. has not seen these questions, so as
More informationECON 1010 Principles of Macroeconomics Solutions to Exam #3. Section A: Multiple Choice Questions. (30 points; 2 pts each)
ECON 1010 Principles of Macroeconomics Solutions to Exam #3 Section A: Multiple Choice Questions. (30 points; 2 pts each) #1. In an open economy where government spending was $30 billion, consumption was
More information7 AGGREGATE SUPPLY AND AGGREGATE DEMAND* Chapter. Key Concepts
Chapter 7 AGGREGATE SUPPLY AND AGGREGATE DEMAND* Key Concepts Aggregate Supply The aggregate production function shows that the quantity of real GDP (Y ) supplied depends on the quantity of labor (L ),
More informationMidterm Exam Study Guide
Midterm Exam Study Guide Spring 2016 EWMBA201B Macro Sections Axe&Oski/AM&PM/31A&32A/Morning&Afternoon Jim Wilcox and Leslie Shen These questions are food for thought; they are designed to assist you in
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Questions of this SAMPLE exam were randomly chosen and may NOT be representative of the difficulty or focus of the actual examination. The professor did NOT review these questions. MULTIPLE CHOICE. Choose
More informationChapter 21: Study Questions Key, Version A
Chapter 21: Study Questions Key, Version A Name: Class (day & time): Discussing the concepts and working examples with others is allowable. However, receiving answers from someone else, and turning these
More information