Intermediate final exam sem 2 - UNIVERSITY OF TECHNOLOGY...

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UNIVERSITY OF TECHNOLOGY FACULTY OF BUSINESS AND MANAGEMENT SCHOOL OF BUSINESS ADMINISTRATION COURSE: INTERMEDIATE MACRO ECONOMICS GROUPS: FIN 4A-B DATE: DURAION: 2 HOURS TUTOR…………………………. GROUP:……………………………. . NAME/ID. NO…………………………………………………………………………… INSTRUCTION This paper has 4 pages and 13 questions. It is divided into three sections A , B and C. Answer ALL questions from section A and Section B and one from section C. SECTION A Multiple Choice (Questions 1 – 10) On the multiple choice card provided please answer all questions. Choose the one best response to each question (1.5mark each) 1. The relationship between an economy’s GDP and the inflation rate is referred to as; A. the Harberger Triangle B. the Phillips Curve C. the natural rate of unemployment D. Okun’s Gap E. national income accounting 2. The theory in which a ten percent increase in the inflation rate π causes an equal increase in the nominal interest rate i is known as: A. seigniorage B. the quantity theory of money C. the Fisher Effect D. inflation theory E. velocity effect 3. Given that the nominal interest rate i in Jamaica last year was 19%, the price level was 0.88 and the inflation rate was 12% then the real interest rate r was A. 7% B. 31% C. 19.88% D. 21.59% E. 13.64% 1
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4. If an economist observes the following characteristics: low consumer demand, unused-capacity in production, prices stable or even falling, Low business profits,
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Intermediate final exam sem 2 - UNIVERSITY OF TECHNOLOGY...

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