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Material Type: Exam; Professor: Biswas; Class: PRIN MACROECONOMICS; Subject: Economics; University: Louisiana State University;
Typology: Exams
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ECON 2010, SPRING 2012, 2nd MIDTERM EXAMINATION
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
billion, the growth rate of real GDP between 2005 and 2006
A) is 3.0%.
B) is 3.6%.
C) is 3.75%.
D) cannot be determined from the information given.
double your money?
A) 1 year and 3 months B) 2 years and 6 months
C) 8 years D) 8 years and 9 months
A) the accumulated knowledge and skills workers acquire from education and training or from
their life experiences
B) manufactured goods that are used to produce other goods and services
C) the quantity of goods and services that can be produced by one worker or by one hour of
work
D) physical equipment that is made by human laborers, not machines
A) the number of times a dollar changes hands in the creation of GDP in an economy.
B) the ease with a stock can be traded for a bond.
C) the number of shares of stock a corporation issues.
D) the ease with which a financial security can be traded for cash.
Consumption, G = Government purchases, T = Taxes, and TR = Transfers)
__________ the number of profitable investment projects a firm can undertake, and the __________ the
quantity demanded of loanable funds.
A) lower; smaller; greater B) greater; greater; greater
C) lower; greater; greater D) greater; smaller; greater
Figure 9- 1
A) Households become spendthrifts and begin to save less.
B) An expected recession decreases the profitability of new investment.
C) Technological change increases the profitability of new investment.
D) The government runs a budget surplus.
knowledge capital?
A) copyrights B) education subsidies
C) patents D) All of the above are correct.
growth rates in real GDP per capita despite relatively low initial levels of real GDP per capita?
A) Many of these developing countries do not have a functioning court system that can enforce
laws.
B) Countries that are relatively poor are likely to have a lower quality of health care.
C) Countries that are relatively poor are more likely to experience wars and revolutions.
D) all of the above
the short run, assuming ________ is constant.
A) total spending; real GDP; total income B) total production; total income; real GDP
C) total spending; real GDP; the price level D) total income; real GDP; the price level
A) an increase in planned investment.
B) actual investment that is greater than planned investment.
C) actual investment that is less than planned investment.
D) a decrease in planned investment.
Over that year, inventories actually grew by $400,000. This implies that
A) there was an unplanned decrease in inventories that year.
B) there was a planned decrease in inventories that year.
C) aggregate expenditure that year was equal to GDP that year.
D) aggregate expenditure that year was less than GDP that year.
A) government purchases, interest rates, income, taxes, and transfers
B) government purchases, saving account balances, wealth, interest rates, portfolio balances
C) wealth, savings account balances, checking account balances, stock portfolio balances, and
bond portfolio balances
D) disposable income, wealth, expected future income, price level, and interest rate
A) When the price level falls, the nominal value of household wealth falls.
B) When the price level falls, the real value of household wealth falls.
C) When the price level falls, the real value of household wealth rises.
D) When the price level falls, the nominal value of household wealth rises.
because ________.
A) increase; a higher price level increases consumption, investment, and net exports.
B) increase; a higher price level reduces consumption, investment, and net exports.
C) decrease; a higher price level reduces consumption, investment, and net exports.
D) decrease; a higher price level increases consumption, investment, and net exports.
Figure 12
-
-
Ceteris paribus
, an increase in the price level would be represented by a
movement from
to AD
2
to AD
1
C) point A to point B. D) point B to point A.
A) changes in the capital stock. B) changes in the number of workers.
C) changes in the price level. D) changes in technology.
Figure 11- 1
than GDP?
D) none of the above
of 2007-2009?
A) the financial crisis B) increases in housing prices
C) falling oil prices D) a decline in government spending
in equilibrium real GDP, then
A) the MPC is 0.5. B) the MPC is 0.75.
C) the MPC is 0.8. D) the MPC is 0.9.
employment GDP is also known as
A) realized GDP. B) potential GDP.
C) balanced-budget GDP. D) politico-economic GDP.