PRACTecon305exam

PRACTecon305exam - Last Name _ First Name _ Student Number...

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Page 1 Last Name _______________________________ First Name _______________________________ Student Number ___________________________ Tutorial Number ___________________________ Econ 305: Intermediate Macroeconomic Theory XX-Dec-2009 Practice Final Examination The examination consists of two parts. Part 1 is made of 20 multiple-choice questions (each worth 1 point). Part 2 is made of 10 questions that require some calculations/graphs/explanations (each worth 3 points). You have 180 minutes to answer all the questions. For any inquiries during the exam, raise your hand. Good luck! ================================================ Part 1 CIRCLE A CORRECT ANSWER. 1. Assume that apples cost \$0.50 in 2002 and \$1 in 2007, whereas oranges cost \$1 in 2002 and \$1.50 in 2007. If 4 apples were produced in 2002 and 5 in 2007, whereas 3 oranges were produced in 2002 and 5 in 2007, then the GDP deflator in 2007, using a base year of 2002, was approximately: A) 1.5. B) 1.7. C) 1.9. D) 2.0.

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2. If nominal GDP grew by 5 percent and real GDP grew by 3 percent, then the GDP deflator grew by approximately ______ percent. A) 2 B) 3 C) 5 D) 8 3. The neoclassical theory of distribution explains the allocation of: A) output between goods and services. B) output among consumption, investment, and government spending. C) income among factors of production. D) income between saving and investment. 4. Assume that the consumption function is given by C = 200 + 0.7( Y T ), the tax function is given by T = 100 + 0.2 Y , and Y = 50 K 0.5 L 0.5 , where K = 100. If L increases from 100 to 144, then consumption increases by: A) 560. B) 840. C) 1,120. D) 2,120. 5. Real money balances equal the: A) sum of coin, currency, and balances in checking accounts. B) amount of money expressed in terms of the quantity of goods and services it can purchase. C) number of dollars used as a medium of exchange. D) quantity of money created by the Federal Reserve. 6. The opportunity cost of holding money is the: A) nominal interest rate. B) real interest rate. C) rate of inflation. D) prevailing Treasury bill rate. 7. If s is the rate of job separation, f is the rate of job finding, and both rates are constant, then the unemployment rate is approximately: A) f /( f + s ). B) (
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This note was uploaded on 03/25/2010 for the course ECON 305 taught by Professor Vasyl(basil)golovetskyy during the Spring '09 term at Simon Fraser.

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PRACTecon305exam - Last Name _ First Name _ Student Number...

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