311Mid02Fall2

311Mid02Fall2 - Intermediate Macroeconomics 311(Professor Gordon Second Mid-Term Examination Fall 2002 YOUR NAME TA INSTRUCTIONS 1 The exam is

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Intermediate Macroeconomics 311 (Professor Gordon) Second Mid-Term Examination Fall, 2002 YOUR NAME: ________________________________ TA: _____________________ INSTRUCTIONS: 1. The exam is worth 55 points in total: 30 points for the two analytical questions, and 25 points for the multiple choice 2. Write your answers to Part A (the multiple choice section) in the blanks on page 1. YOU WILL NOT GET CREDIT FOR CIRCLED ANSWERS IN THE MULTIPLE CHOICE SECTION 3. Place all of your answers for part B in the spaces provided 4. Good Luck! PART A Answer multiple choice questions in the space provided below. Write clearly, USING CAPITAL LETTERS. 1. _ _ __ 6. _ _ __ 11. _ _ __ 16. _ _ __ 21. _ _ __ 2. _ _ __ 7. _ _ __ 12. _ _ __ 17. _ _ __ 22. _ _ __ 3. _ _ __ 8. _ _ __ 13. _ _ __ 18. _ _ __ 23. _ _ __ 4. _ _ __ 9. _ _ __ 14. _ _ __ 19. _ _ __ 24. _ _ __ 5. _ _ __ 10. _ _ __ 15. _ _ __ 20. _ _ __ 25. _ _ __
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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A nation running a current account deficit must either be ________ its indebtedness to foreigners in the private sector or ________ its indebtedness to foreign governments. A) decreasing, increasing B) increasing, decreasing C) increasing, increasing D) decreasing, decreasing 2) A nation's net international investment position moves toward surplus when A) that nation runs a current account deficit. B) that nation runs a capital account surplus. C) that nation runs a current account surplus. D) none of the above 3) Suppose the aggregate demand curve shifts rightward against a horizontal short-run aggregate supply curve. Real GDP would ________ while the price level ________. A) rise, remain unchanged B) remain unchanged, rises C) remain unchanged, falls D) rise, rises E) fall, rises 4) An increase in the rate of growth of nominal GNP A) will cause a greater increase in real GNP the lower the rate of inflation. B) will shift the SP curve downward. C) will shift the SP curve upward. D) will cause a smaller increase in real GNP the lower the rate of inflation. 5) If inflation is greater in Italy by 10% than it is in the rest of the world then the purchasing power parity theory predicts that the A) Italian lira would remain stable. B) Italian lira would appreciate. C) U.S. dollar would weaken. D) Italian lira would depreciate. 6) The LM curve will shift to the A) left if the price level falls and the quantity of money is held constant. B) left if the price level is held constant and the quantity of money rises. C) right if the price level falls and/or the quantity of money rises. D) right if the price level rises and the quantity of money is held constant.
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7) The slope of the SAS curve is important because it A) partially explains the impact of AD stabilization policies on Y and P. B) explains the impact of both supply and demand side policies on Y and P.
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This note was uploaded on 09/04/2010 for the course ECON 311 taught by Professor Gordon during the Spring '08 term at Northwestern.

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311Mid02Fall2 - Intermediate Macroeconomics 311(Professor Gordon Second Mid-Term Examination Fall 2002 YOUR NAME TA INSTRUCTIONS 1 The exam is

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