201FA08_Final_combined_081221

201FA08_Final_combined_081221 - Econ. 201, Final, Fall 2008...

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Unformatted text preview: Econ. 201, Final, Fall 2008 Name: Student ID: TA Name: Nic Joseph Erik Andrew Alex Time: 9 am 3 pm Directions: The exam is worth 120 points and you have two hours to complete it. Please answer the multiple choice in the box below. Whenever youre asked to calculate a rate of change, use the log growth formula. Answers based on the discrete formula will not be accepted. Good luck! 1. 11. 21. 31. 41. 2. 12. 22. 32. 42. 3. 13. 23. 33. 43. 4. 14. 24. 34. 44. 5. 15. 25. 35. 45. 6. 16. 26. 36. 46. 7. 17. 27. 37. 47. 8. 18. 28. 38. 48. 9. 19. 29. 39. 49. 10. 20. 30. 40. 50. 1 Multiple Choice - 50 points 1. Suppose foreigners start to expand their investment in the US. How will this change the supply of loanable funds in the US? (a) Increase. (b) Decrease. (c) Stays the same. (d) Indeterminate. 2. All else equal, how will this effect the interest rate in the US? (a) Increase. (b) Decrease. (c) Stays the same. (d) Indeterminate. 3. A stock is (a) a share of ownership in a company. (b) safer than a bond. (c) a promise to pay principal and interest in the future. (d) sold by the government. 4. Assume China in 2008 has a per-capita income of$3000 and the U. S. has a per-capita income of $40,000. Between 2008 and 2028 China grows at 9 percent while the U. S. grows at 2 percent. The per-capita income of China in 2028 will be and that of the U. S. will be . (a) 10148; 69672 (b) 18148; 59672 (c) 10148; 59672 (d) 18148; 69672 5. Assume that nominal GDP grows by 5 percent from year 1 to year 2. Real GDP in year 1 prices grows by 2.5 percent and in year 2 prices grows by 3.5 percent. The growth rate of the GDP deflator in year 1 prices is ; the growth rate of the GDP deflator in year 2 prices is ; and the growth rate of the chain-weighted GDP deflator is (a) 2.5; 1.5; 2.0 (b) 2.5; 3.5; 3.0 (c) 1.5; 2.5; 2.0 (d) 3.5; 2.5; 3.0 2 6. Nic takes out a loan from Andrew. What is the overall change in assets plus liabilities when summed over both people? (a) Increase. (b) Decrease. (c) Stays the same. (d) Indeterminate. 7. Over the last 100 years, how has the percentage of countries that experience scarcity changed? (a) Decreased a lot. (b) Decreased a little. (c) No change. (d) Increased a lot. 8. Which of the following is an important assumption of the income-expenditure model? (a) Prices are fixed in the short-run. (b) Prices are flexible in the long-run. (c) Government spending is more effective in stimulating the economy than tax cuts. (d) (a) and (b) (e) All of the above. 9. A simultaneous rise in productivity and nominal wages would shift the short-run aggregate supply curve to the: (a) right if the rise in nominal wages is larger than the rise in productivity. (b) right if the cost per unit of output rises....
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201FA08_Final_combined_081221 - Econ. 201, Final, Fall 2008...

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