201Mid02Fall2

# 201Mid02Fall2 - Econ 201 Prof Gordon Fall 2002 Northwestern...

This preview shows pages 1–4. Sign up to view the full content.

Econ 201 – Prof. Gordon Northwestern University Midterm #2 Fall 2002 Department of Economics November 11, 2002 Name_______________________________ Student # ___________________________ Please circle one : TA : Etienne Ron Section : Tu. Th. The following is a closed material (though, open mind) exam. Calculators are allowed. As a reminder, the exam is graded by humans, so write as NEATLY as possible. Good luck! PART A (Multiple choice, 1 pt. each, 30 pts. total) Choose the one alternative that best completes the statement or answers the question, and report your answer in the table below. Question Answer Question Answer Question Answer 1 _____ 11 _____ 21 _____ 2 _____ 12 _____ 22 _____ 3 _____ 13 _____ 23 _____ 4 _____ 14 _____ 24 _____ 5 _____ 15 _____ 25 _____ 6 _____ 16 _____ 26 _____ 7 _____ 17 _____ 27 _____ 8 _____ 18 _____ 28 _____ 9 _____ 19 _____ 29 _____ 10 ______ 20 ______ 30 ______

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
2 1. Net taxes are a) the difference between taxes paid to the government and government spending. b) taxes paid to the government minus transfer payments. c) the difference between the amount of taxes owed and the amount collected. d) none of the above answers are correct. 2. Which of the following pairs would BOTH shift the AD curve to the left? 3. At potential GDP, 4. In the above figure, the short-run aggregate supply curve is SAS and the aggregate demand curve is AD. A recessionary gap exists 5. In the macroeconomic long run, a) real GDP = potential GDP. b) the economy is at full employment. c) regardless of the price level, the economy is producing at potential GDP. d) all of the above are correct. e) only a) and b) are correct. 6. In the 1970s cars were required to be equipped with anti-pollution devices that helped reduce air pollution. If a 1977 car has a \$200 higher price than a 1976 car to reflect the cost of added anti-pollution equipment, the government would correctly count the benefits of the cleaner air in real GDP if it
3

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern