311M1Fall03 - Intermediate Macroeconomics 311 (Professor...

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Unformatted text preview: Intermediate Macroeconomics 311 (Professor Gordon) First Mid-Term Examination Fall, 2003 YOUR NAME: _______________________________ TA: (circle one) David or Zahra Section: (circle one) 9:00am or 3:00pm INSTRUCTIONS: 1. The exam lasts 1 hour. 2. The exam is worth 60 points in total: 30 points for the two analytical questions, and 30 points for the multiple choice. 3. Write your answers to Part A (the multiple choice section) in the blanks on page 1. YOU WONT GET CREDIT FOR CIRCLED ANSWERS IN THE MULTIPLE CHOICE SECTION 4. Place all of your answers for part B in the spaces provided 5. GOOD LUCK! PART A Answer multiple choice questions in the space provided below. USE CAPITAL LETTERS. 1. _ _ __ 6. _ _ __ 11. _ _ __ 16. _ _ __ 21. _ _ __ 26. _ _ __ 2. _ _ __ 7. _ _ __ 12. _ _ __ 17. _ _ __ 22. _ _ __ 27. _ _ __ 3. _ _ __ 8. _ _ __ 13. _ _ __ 18. _ _ __ 23. _ _ __ 28. _ _ __ 4. _ _ __ 9. _ _ __ 14. _ _ __ 19. _ _ __ 24. _ _ __ 29. _ _ __ 5. _ _ __ 10. _ _ __ 15. _ _ __ 20. _ _ __ 25. _ _ __ 30. _ _ __ &&&&&&&& &&&&&& &&&&&& &&& &&& &&&&&&&&&&& &&&& &&&& &&&&&&&& & &&& &&&&&&&&& && &&&&&&& &&& &&&&&&&& 1) If total planned spending (E(p)) exceeds GDP, we expect that A) inventories will be rising. B) GDP will be falling. C) inventories will be falling. D) government expenditures must be rising. 2) A change in the multiplier (k) will change the A) slope of the IS curve. B) position of the LM curve. C) slope of the LM curve. D) slope and the position of the IS curve. 3) In the simple Keynesian model of the determination of income, the price level is assumed to be A) endogenous and to remain constant. B) exogenous and to remain constant. C) exogenous and to gradually change. D) endogenous and to gradually change. 4) The multiplier measures the A) rise in saving resulting from a rise in income. B) marginal propensity to invest. C) rise in equilibrium GDP resulting from a one dollar rise in planned autonomous expenditures. D) number of steps it takes to move from one equilibrium to another. 5) Which of the following would NOT be included in total final product (GDP)? A) welfare payments B) a used office building purchased by a high-tech firm C) semiconductors that are bought by a firm in Hong Kong D) both A and B 6) An increase in the money supply will raise equilibrium GDP if the A) IS curve is not vertical. B) position of the LM curve depends on the level of real money balances. C) position of the IS curve depends on the level of real money balances. D) IS curve is negatively sloped. 7) If nominal GDP increases, which of the following will always take place? A) prices will have increased but output will have fallen or remained the same....
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311M1Fall03 - Intermediate Macroeconomics 311 (Professor...

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