Final Exam - Introduction to Macroeconomics ECO 304L Final...

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Unformatted text preview: Introduction to Macroeconomics ECO 304L Final Exam, December 19th, 2006 Name: UTEID: Directions You get 1 point for writing your name and UTEID both on this cover sheet as well as the scantron (Be sure to bubble it in). This booklet has 10 pages including this cover sheet. Please check it to be sure you have all the pages. If you don’t, raise your hand and I’ll replace it. This test has 24 multiple choice questions (worth 2 points each) and 6 free response questions (worth 24 points ), for a total of 72 points. The test is open book and open notes. Internet access is not allowed . Please keep your responses as short and specific as possible. You have 75 minutes to finish the test. When you are finished, please stick your scantron inside your test booklet. Good Luck! 1 Multiple Choice Questions 1. Wendy’s purchased 6 brand new industrial microwaves at $150 each. It also purchased 2 used coffee machines for $50 each. The net increase in GDP because of these transactions was A) $1000 B) $750 C) $900 D) none of the above 2. When government revenues exceed spending in a period A) government debt decreases B) government debt increases C) taxes must be decreased in the future D) none of the above 3. The country of Smallville produces honey and cheese and has the following macroeconomic data available 2004 2005 Good Qty Price Qty Price Honey 300 quarts $3 400 quarts $4 Cheese 200 lbs $2 300 lbs $3 Between 2004 and 2005 nominal GDP grew by A) 66.0% B) 113.5% C) 82.3% D) 92.3% 4. Using the same data as the previous question and using 2005 as the base year, find the percent change in real GDP between 2004 and 2005. A) 23.9% B) 62.2% C) 38.8% 2 D) none of the above 5. Suppose the real interest rate last year was 6% and the nominal interest rate was 4%. If the CPI was at 125 last year, what is the CPI today assuming a constant rate of inflation?...
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This test prep was uploaded on 03/26/2008 for the course ECON 304L taught by Professor Staff during the Fall '07 term at University of Texas.

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Final Exam - Introduction to Macroeconomics ECO 304L Final...

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