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201finalFA04

# 201finalFA04 - Multiple Choice 1 2 3 4 5 6 7 8 9 10 11 12...

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Points: MC SA1 SA2 SA3 SA4 SA5 SA6 Time Total Multiple Choice 1 14 27 40 2 15 28 41 3 16 29 42 4 17 30 43 5 18 31 44 6 19 32 45 7 20 33 46 8 21 34 47 9 22 35 48 10 23 36 49 11 24 37 50 12 25 38 13 26 39 Total: Short Answer Questions Answers Answers I. 1. Value of investment II. 1. Autonomous Expenditure 2. Value of Real GDP 2. Multiplier on Autonomous Expend. 3. Value of Net exports 3. Equilibrium GDP 4. Value of Net Domestic Product 4. National Savings 5. Budget Balance 6. Increase in Equilibrium GDP 7. Actual Investment Total (1+2+1+2) Total (1+1+3+1+1+1+2)

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Answers III IV. 1. Change in Dollar Deposits 2. Change in Bank Reserves 3. Money Multiplier 4. Change in Money Supply Total (1+1+2+1) 1. Graph V. 1. Required Reserve Ratio 2. Excess Reserves 3. Net Loans 2. New equilibrium Real GDP 4. New Excess Reserves 5. New Actual Reserve Ratio Total (1+1+1+1+1) VI. 1. New Recessionary Gap 2. Aggregate Demand Equation 3. Aggregate Supply Equation 4. Long Run Aggregate Supply in 2010 3. Graph 5. Not a cause for long term growth Total (2+2+2) 6. Reason for shift in AD 7. Increase in Gov’t expenditures Total (1+1+1+2+2+1+2)
This Exam Consists of 17 printed pages, 50 Multiple choice questions and 6 short answer questions for a total of 117 points, plus the +4 if you turn in on time. ECON 201 – Final Exam Multiple Choice Section (50 questions, 75 points possible) 1 . ____ refers to a period when the ____ decreases. a. Recession; growth rate of nominal GDP b. Recession; growth rate of output per person c. Productivity growth slowdown; growth rate of real GDP d. Productivity growth slowdown; growth rate of output per person 2 . The CPI tells us a. changes in prices of a group of goods and services bought by a typical urban household b. the increase in prices of those goods that are rising fastest. c. the rate at which wages are rising. d. the increase in the prices of those goods that are rising slowest. 3 . Which of the following expenditures associated with the production of a new high- performance SUV will be included in GDP? 4 . U.S. investment is financed from a. private saving, government budget surpluses and borrowing from the rest of the world b. private saving, government budget deficits and borrowing from the rest of the world. c. private borrowing, government budget deficits and lending to the rest of the world. d. private saving and borrowing from the rest of the world only. 5 . Under a feedback-rule that targets real GDP, if the economy goes into a recession, the Fed would a. increase the quantity of money. b. reduce tax rates. c. increase government purchases.

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