Midterm 2 2006

Midterm 2 2006 - Spring 2006 Name: _ Circle one: 10:10...

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Spring 2006 Name: __________________________ Circle one: 10:10 section, 11:10 section 1/5 Principles of Macroeconomics Midterm 2 You’ll have fifty minutes to complete this exam. Be sure to label all your curves and axes. If you have any questions during the course of the exam, feel free to ask me. Good luck! 1) Even as crude oil prices moderate, we continue to hear a lot of talk in the media about the high price of gasoline, diesel fuel, and home heating oil. A) To put all of this into perspective, complete the following table [15 points]: Date Nominal price per barrel of crude oil Consumer price index Real price per barrel of crude oil (October 2005 dollars) 10/1/1980 $36.00 84.7 10/1/1990 133.5 $53.52 10/1/2000 $33.08 $37.84 10/1/2005 198.9 $62.37 B) To get a better sense for just how concerned we should be about the recent rise in (nominal) oil prices, complete the following table. [Note: While we’d normally use the GDP deflator to calculate real GDP, for this problem you can use the CPI figures from part A.] [15 points]
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Midterm 2 2006 - Spring 2006 Name: _ Circle one: 10:10...

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