Midterm #1 Exam

Midterm #1 Exam - Version A University of California...

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Version A 1 University of California, Riverside Econ 103A Macroeconomic Theory Winter 2008 Midterm Exam #1 Name:__________________________ Student ID:___________________________ Multiple-Choice Questions [2 points each] 1. Which of the following statements is correct ? (a) Intermediate goods are final goods that remain in inventories. (b) Intermediate goods are counted in GDP, capital goods are not. (c) Capital goods are counted in GDP, intermediate goods are not. (d) Both intermediate goods and capital goods are not counted in GDP because they are completely used up in the current time period. 2. Suppose C =500, I = 100, NX = -20, NFP = 30 and GNP = 1500. What is G ? (a) 1500 – 30 – 500 – 100 + 20 (b) 1500 + 30 – 500 – 100 – 20 (c) 1500 + 30 – 500 – 100 + 20 (d) 1500 – 30 – 500 – 100 – 20 3. Which of the following statements about real interest rate is correct ? (a) Real interest rate measures the rate at which the purchasing power of an asset changes over time. (b) If the nominal interest rate is 6% and the real interest rate is 3%, then the inflation rate must be about -3%. (c) If the nominal interest rate is higher than the inflation rate, then the purchasing power of an asset will decline over time. (d) Real interest rate cannot be negative.
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Version A 2 4. Holding labor (N) and capital (K) constant, an increase in productivity (A) (a) shifts the MPK curve to the left. (b) raises the marginal product of capital. (c) shifts the production function relating output and capital downward.
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Midterm #1 Exam - Version A University of California...

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