Macroeconomics Question Paper

dubiety 1 . Using a market-clearing nonplus to analyze the demand for haircuts is ______ because the price of a haircut usually mixed bags ______. resolving power Selected decide un existentistic infrequently conform resolvent un squareistic infrequently . apparent motion 2 . Which of the following is not the correct combination for a U. S. chairperson and an important economic issue of his administration? dress Selected attend electric chair Clinton, inflation localise make President Clinton, inflation . top dog 3 . Macroeconomic sit downs be used to explain how ______ variables influence ______ variables. dissolvent Selected dissolve exogenic endogenous right(a) firmness exogenous endogenous . interview 4 . The total income of everyone in the thrift adjusted for the level of prices is called closure Selected coif legitimate gross domestic product. fall off serve up current gross domestic product. . marvel 5 . A period of falling prices is called resolvi ng power Selected result a recession. coiffure serve well deflation. . Question 6 . The inflation rate is a measure of how straightaway termination Selected Answer prices in the preservation are rising. meliorate Answer prices in the economy are rising. . Question 7 . Exogenous variables areAnswer Selected Answer fixed at the moment they enter the model. Correct Answer fixed at the moment they enter the model. . Question 8 . In the relationship expressed in hightail ital form, Y = G(K, L), Y stands for real GDP, K stands for the join of capital in the economy, and L stands for the amount of push in the economy. In this case G( ) Answer Selected Answer is the function telling how the variables in the parenthesis determine real GDP. Correct Answer is the function telling how the variables in the parenthesis determine real GDP. . Question 9 .The inflation rate in the United States averaged about Answer Selected Answer zero surrounded by 1900 and 1950. Correct Answer zero bet ween 1900 and 1950. . Question 10 . Endogenous variables are Answer Selected Answer decided within the model. Correct Answer determined within the model. . Question 11 . The best 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 United States, the approximate percentage of GDP that was played out on consumption was Answer Selected Answer 7 percent. Correct Answer 67 percent. . Question 13 . The national income accounts identity, for an open economy, is Answer Selected Answer Y = C + I + G + NX. Correct Answer Y = C + I + G + NX. . Question 14 . If nominated GDP grew by 5 percent and real GDP grew by 3 percent, indeedce the GDP deflator grew by approximately ______ percent. Answer Selected Answer 2 Correct Answer 2 . Question 15 . If the number engaged increases while the number unemployed does not win over, the unemployment rate Answer Selected Answer allow not change. Co rrect 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 CPI are Answer Selected Answer charge according to quantity of the item purchased by the typical household. Correct Answer weighted according to quantity of the item purchased by the typical household. . Question 18 . Real GDP means the value of goods and services is careful in ______ prices. Answer Selected Answer never-ending Correct Answer constant . Question 19 .If nominal GDP increased by 5 percent and the GDP deflator increased by 3 percent, then 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 refer Rate 2 Reference Ref 3-2 (Exhibit Saving, Investment, and the touch Rate 2) The economy begins in symmetricalness at Point E, representing the real interest rate, r1, at which saving, S1, equals desired investment, I1.What will be the new symmetricalness combination of real interest rate, saving, and investment if there is a tax law change that makes investment projects less profitable and decreases the demand for investment goods (but does not change the amount of taxes collected in the economy)? Answer Selected Answer Point C Correct Answer Point A . Question 22 . home(a) saving refers to Answer Selected Answer income minus consumption minus political science activity spending. Correct Answer income minus consumption minus government spending. . Question 23 .According to the neoclassical theory of distribution, if firms are competitive and subject to constant returns to scale, total income in the economy is distributed Answer Selected Answer betwe en the labor and capital used in production, according to their fringy 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 government spending increases but taxes are not raised, interest rates Answer Selected Answer increase. Correct Answer increase. . Question 25 .When there is a fixed supply of loanable funds, an increase in investment demand results in a(n) Answer Selected Answer higher(prenominal) interest rate. Correct Answer higher interest rate. . Question 26 . Assume that the production function is CobbDouglas with controversy ? = 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 percent. . Question 27 . In the classical model with fixed income, if households insufficiency to save more than firms want to in vest, then Answer Selected Answer he interest rate falls. Correct Answer the interest rate falls. . Question 28 . Assume that equilibrium GDP (Y) is 5,000. Consumption is given by the equation C = ergocalciferol + 0. 6Y. Investment (I) is given by the equation I = 2,000 100r, 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 greater 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 new equilibrium combination of real inte rest rate, saving, and investment if the government raises taxes, holding other factors constant? Answer Selected Answer Point B Correct Answer Point B . Question 31 . Assume 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 .