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sample midterm summer

sample midterm summer - Econ 100B UCSC Sample Midterm...

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Econ 100B Instructor: Yi Sun UCSC Summer 2007 Sample Midterm Part A (20%) Multiple choice questions: Pick up your best choice for the questions 1) When nominal GDP falls for a given period, we know with certainty that: A) the price level (GDP deflator) has decreased. B) real output and the price level (GDP deflator) have both decreased. C) either real output or the price level (GDP deflator) have decreased. D) real output has increased and the price level has decreased. E) real output has decreased. Answer: ___ 2) Based on our understanding of consumption and saving, we know that the marginal propensity to consume and the marginal propensity to save must: A) sum to exactly one. B) be equal to the multiplier. C) sum to less than one. D) sum to more than one. E) be equal to each other. Answer: ___ 3) When C = c 0 + c 1 Y D , a reduction in c 0 will cause which of the following to decrease? 4) Which of the following events would cause an increase in the size of the multiplier?
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