Final Macro April 2009

Final Macro April 2009 - CARLETON UNIVERSITY ECON 1000...

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CARLETON UNIVERSITY ECON 1000 Section B Final Exam, April 2009 George Kowalski 04/15/2009 1
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PART A---MULTIPLE CHOICE. DO ALL QUESTIONS. 2 MARKS EACH. Answer on attached answer sheet and be sure to detach and hand in with your exam. 1. If Susan decides to change the oil in her car herself instead of having Speedy Lube change the oil for her, GDP: a. necessarily rises. b. necessarily falls. c. will be unaffected because the same service is produced in either case. d. will be unaffected because car maintenance is not included in GDP. 2. By not taking into account the possibility of consumer substitution, the CPI a. understates the cost of living. b. overstates the cost of living. c. may overstate or understate the cost of living depending on how much prices rise. d. doesn't accurately reflect the cost of living, but it is unclear if it overstates or understates the cost of living. 3. Productivity a. is nearly the same across countries and so provides no help explaining differences across countries in the standard of living. b. explains very little of the differences across countries in the standard of living. c. explains some, but not most of the differences across countries in the standard of living. d. explains most of the differences across countries in the standard of living. 4. If the current market interest rate for loanable funds is above the equilibrium level, then a. the quantity of loanable funds demanded will exceed the quantity of loanable funds supplied and the interest rate will rise. b. the quantity of loanable funds supplied will exceed the quantity of loanable funds demanded and the interest rate will rise. c. the quantity of loanable funds demanded will exceed the quantity of loanable funds supplied and the interest rate will fall. d. the quantity of loanable funds supplied will exceed the quantity of loanable funds demanded and the interest rate will fall. 5. What would happen in the market for loanable funds if the government were to increase the tax on interest income? a. The supply of loanable funds would shift right. b. The demand for loanable funds would shift right. c. The supply of loanable funds would shift left. d. The demand for loanable funds would shift left. 2
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6. Which of the following is incorrect ? a. The unemployment rate is computed using the number of unemployment insurance claims filed. b. Each adult included in the unemployment statistics is classified as employed, unemployed, or not in the labour force. c. Unemployment numbers include people aged sixteen and older. d. Statistics Canada gathers data on unemployment and employment. 7. A central bank lowered the reserve requirement ratio from 12 percent to 10 percent. Other things the same this should have a. increased both the money multiplier and the money supply. b.
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Final Macro April 2009 - CARLETON UNIVERSITY ECON 1000...

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