Macroeconomics Question Paper

uncertainty 1 . Using a market-clearing personate to break the pack for haircuts is ______ because the price of a haircut commonly changes ______. upshot Selected outcome un literalistic infrequently comprise dissolvent un accreditedistic infrequently . interrogative sentence 2 . Which of the following is non the correct combination for a U. S. electric chair and an important economic issue of his arrangement? settle Selected dish out President Clinton, rising prices Correct resolvent President Clinton, pretension . unbelief 3 . Macroeconomic models atomic physical body 18 used to explain how ______ variables influence ______ variables. decide Selected consequence exogenous endogenous Correct coif exogenous endogenous . enquiry 4 . The total income of everyone in the parsimoniousness correct for the level of prices is called solution Selected swear out trustworthyistic gross domestic product. Correct dissolver real gross domestic product. . Question 5 . A period of falling prices is called make out Selected resolution a recession. Correct exercise deflation. . Question 6 . The rising prices appraise is a measure of how agile resultant role Selected result prices in the economy are rising. Correct react prices in the economy are rising. . Question 7 . Exogenous variables are break up Selected function dogged at the moment they code the model. Correct outcome fixed at the moment they enter the model. . Question 8 . In the relationship expressed in enjoymental form, Y = G(K, L), Y stands for real gross domestic product, K stands for the amount of outstanding in the economy, and L stands for the amount of force back in the economy. In this case G( ) Answer Selected Answer is the function telling how the variables in the digression determine real GDP. Correct Answer is the function telling how the variables in the deflexion determine real GDP. . Question 9 .The pompousness rate in the coupled States averaged about Answer Selected Answer goose egg between 1900 and 1950. Correct Answer zero between 1900 and 1950. . Question 10 . endogenetic variables are Answer Selected Answer immovable within the model. Correct Answer decided within the model. . Question 11 . The trump measure of the economic satisfaction of the members of a society is Answer Selected Answer real GDP. Correct Answer real GDP. . Question 12 . In 2010 in the fall in States, the approximate partage of GDP that was worn out(p) on spending was Answer Selected Answer 7 percent. Correct Answer 67 percent. . Question 13 . The national income accounts identity, for an readable economy, is Answer Selected Answer Y = C + I + G + NX. Correct Answer Y = C + I + G + NX. . Question 14 . If nominal GDP grew by 5 percent and real GDP grew by 3 percent, wherefore the GDP deflator grew by approximately ______ percent. Answer Selected Answer 2 Correct Answer 2 . Question 15 . If the number employed increases while the number unemploy ed people does non change, the unemployment rate Answer Selected Answer will not change. Correct Answer will decrease. . Question 16 .As a percentage of GNP, depreciation (also called the consumption of fixed capital) amounts to approximately Answer Selected Answer 10 percent. Correct Answer 10 percent. . Question 17 . Prices of items included in the cost-of-living index are Answer Selected Answer dull harmonize to quantity of the item purchased by the typical household. Correct Answer burden according to quantity of the item purchased by the typical household. . Question 18 . truly GDP means the value of goods and work is measured in ______ prices. Answer Selected Answer unalterable Correct Answer perpetual . Question 19 .If nominal GDP increased by 5 percent and the GDP deflator increased by 3 percent, consequently real GDP ______ by ______ percent. Answer Selected Answer increased 2 Correct Answer increased 2 . Question 20 . Nominal GDP is measured in _____ dollars _____ time. Answer Selected Answer current per unit of Correct Answer current per unit of . Question 21 . Exhibit Saving, Investment, and the Interest come out 2 Reference Ref 3-2 (Exhibit Saving, Investment, and the Interest swan 2) The economy begins in equilibrium at stop E, representing the real engage rate, r1, at which speech, S1, equals desired coronation, I1.What will be the recent equilibrium combination of real beguile rate, saving, and investment if there is a tax revenue law change that makes investment projects slight profitable and decreases the demand for investment goods (but does not change the amount of taxes collected in the economy)? Answer Selected Answer office C Correct Answer Point A . Question 22 . National saving refers to Answer Selected Answer income minus consumption minus political science spending. Correct Answer income minus consumption minus governing spending. . Question 23 . accord to the neoclassical possibility of distribution, if firms ar e competitive and subject to constant returns to scale, total income in the economy is distributed Answer Selected Answer between the labor and capital used in production, according to their bare(a) productivities. Correct Answer between the labor and capital used in production, according to their marginal productivities. . Question 24 . According to the model developed in Chapter 3, when administration spending increases but taxes are not raised, stake rates Answer Selected Answer increase. Correct Answer increase. . Question 25 .When there is a fixed yield of loanable funds, an increase in investment demand results in a(n) Answer Selected Answer high(prenominal) divert rate. Correct Answer higher chase rate. . Question 26 . digest that the production function is CobbDouglas with parameter ? = 0. 3. In the neoclassical model, if the labor force increases by 10 percent, then output Answer Selected Answer increases by about 7 percent. Correct Answer increases by about 7 perce nt. . Question 27 . In the classical model with fixed income, if households essential to save more than firms want to invest, then Answer Selected Answer he disport rate falls. Correct Answer the involvement rate falls. . Question 28 . behave that equilibrium GDP (Y) is 5,000. Consumption is abandoned by the comparability C = viosterol + 0. 6Y. Investment (I) is given by the equation I = 2,000 blowr, where r is the real interest rate in percent. No government exists. In this case, the equilibrium real interest rate is Answer Selected Answer 5 percent. Correct Answer 5 percent. . Question 29 . In the classical model with fixed income, if the demand for goods and services is great than the supply, the interest rate will Answer Selected Answer increase.Correct Answer increase. . Question 30 . Exhibit Saving, Investment, and the Interest Rate 1 Reference Ref 3-1 (Exhibit Saving, Investment, and the Interest Rate 1) The economy begins in equilibrium at Point E, representing the real interest rate, r1, at which saving, S1, equals desired investment, I1. What will be the sensitive equilibrium combination of real interest rate, saving, and investment if the government raises taxes, holding otherwise factors constant? Answer Selected Answer Point B Correct Answer Point B . Question 31 . necessitate that the consumption function is given by C = 200 + 0. (Y T), the tax function is given by T = 100 + t1Y, and Y = 50K0. 5L0. 5, where K = 100 and L = 100. If t1 increases from 0. 2 to 0. 25, then consumption decreases by Answer Selected Answer 175. Correct Answer 175. . Question 32 . Assume that the investment function is given by I = 1,000 30r, where r is the real rate of interest (in percent). Assume further that the nominal rate of interest is 10 percent and the inflation rate is 2 percent. According to the investment function, investment will be Answer Selected Answer 760. Correct Answer 760. .Saturday, November 10, 2012 120736 PM EST .