1010Q-SampleExam-VersionB - YORK UNIVERSITY FACULTY OF ARTS...

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Unformatted text preview: YORK UNIVERSITY FACULTY OF ARTS OEPARTHENT OF EOONOHIOS ECONOHIOS 1D1fl 1D 13: INTRODUCTION TO HACROEOONOHIOS Test # 2 March 19. 20:33 Course Director: Dr. John Paschekis TOTAL WORTH 25% sruosm NAME: M g wig VHS STUDENT NUMBER INSTRUCTIO MB: A. This examination consists of forty [40] mulliple choice questions. There Is only one correct answer. No penalty for wrong answers. 3. Circle your final choice for syery question on each page of the exam and carefully mark the letter you hays chosen on the Comwterized Answer Sheet. Use HE pencil only. C. Time allowed: 6i] minutes nggl ow E. ECONOMIES lflIt] Q 3.!) I NTRDDUCI'IDN T0 MAWMICS WINTER 2B0? TEST l 2 PROFEEOR IOHN PM Name MULTIPLE CHOICE Chen-e the one alternative that beet cempletu the states-mt nrmera the question. llnnineemetaxcut I} g A] inrreeeesrealGDPandthe-prieeieeel myriaeertell BJdmnelafiectrealGDPnrfl'ieprieeleve]. C} inert-flees real GDP but leaves the price leer intact. D} increases both real GDP and the price level. E} incream real: GDP but decreases the price level 2:: Suppmettuttiiereisaninrrenseinthevatueuimudim expumdemmded. 2} C tat] The quantityr of Canadian duller-e demanded an the inrn‘gn exchange market will decrease as aresult efan increase in the valueufthL-Cmudian dollar. E] The value of mnency in importing countries will rise due in an iluzrease in the vaiue of Canadian currency. C} The iql.ti‘.l.rli.it'_iI of Cerudian drillers demanded on the ioreign ending: market will rise. D} The quantity of Canadian anlarll demanded an the foreign exdunge market wifl decrease. E} The expected future exdtange rate will rise. 3] Which One of the following will shift li'ie demand time for dollars rightward? 3} 2 A} 'lhe duller is expected to depreciate. B] aninereilsein the demand for iereign guadabyEanadian cttizena C} adeaeasein the-demand for Canadian gnodsby furnigners D} The dniial' i3 expat-ted to appreciate. E] 11.5. interest rates increase. Ii}IftheMFCist].6,fl1erearenninducedmsmimpemmwgmmmtdmesmahifldleiifl H curve rightward hyfihflflmedlecmmddiangemeutenemumis Ii) -$2 billion. _ .. .._._'._. C] -525 billion. __ ._ in D} -53 biiitun. '4" “hi” i in PC 1 ‘% ei-slsliilliun. .2 _ .fiafi __ ,_ l 5’ —— it . w E SJWhmwnuidtileexdiangeratensethemmt? 5] A} When there is intervention by the Bank of Canada. Bi When the nip-ply of defiant decniaiiea, and the demand increase: C} When the mpptjr and demand ili duller: bath decrease. D] When the supply at chillers immune. and the theme! item. E] When the wpply and demand at drillers hath increase. ECUNM Ifllfl Q 3J3 MUDUCHCHQ TU WEEDNUMICS WINTER Ina? TESTIE PRUFESGDlilflfflfil PAM ayumemlmmumnwwquflmmmemmmmmmmkm El E AlPeapleeellbondstugetfidelfleelrexeeeemmyJuwufiqflnpflmdhmflsand railingflle rateafinterelt B}Peoplebuyhmdehgetfiduffiwirexmmynlsingthepfieeefbmdeanflraifingflm retrofitted. QPmplesellgwdatugetfldetflfirmmmevefingflwpfieeflgmfismdmismgfl-Ie minume D} FeaphbuygoodetegetfidefflleirmumyJawedngflwpfineefpndaandraisingthe mleelinleregt E} Peopleeeflbendsluhjrandraleeuwremaney.lewerhagfliepfieeefbmtdeandraielngfiae retenme '3’}Suppmflneeedungeratebetwaentheflamdimdnlhrarflflleflrlflflpamuiisllfipmrflepfl '3'} l3 dollar.flaradlnsefiefur35pumdelnflflflmwhatiefllednllarpflceefflufldje? A155? eye-ire c3519 ; 1525 E1538 fl :lll'I/é “fixtzlfi‘é _ 5}Threlalitmshiphehveentheautmmmehxmlflfipflerendflwmflinefiflpuymmts E} g : mulfipfleris A} they have the same value. B} the tax multiplier is Mine the 1value of the transfer paymmI: multiplier. Cl they add up in 22m. 13'} the lander pawl: multiplier is twice the value of the tax multiplier. E} thump]:r add up h: ‘L 9} In the long run. the multiplier 91 AjtnsalergereltettmmalGDPthan lthulnfl'ueshofirumbefluleflulemmureindumd expendihameeinthelungm Bl hasammllereflmonmlGDPfimnltmmfluermbemuseelfliemnm-Ief leakaguinfl'leemwmy. C] mnhweamullerorlmgerefiedmreelGDFflimlthestntheshnflmn. DJ has:mufluefiedonrenlfinPflmflhfllntheflwflmnbemueeetpmekvdeflem. El hasa largerefledanrenlflnhhenflhasinthesheflmmbmueeflmmuttiplierelfectlusa hrlgerflniepcflodmmfllulntpmmflnemmy. 1n} Wl'mwwld theexd'nnge mhenmetdecreue in value? 1n] C AJWlIenthempplfefdellaredeuemmdthedmndm B] When the mpply and demand at dollars both den-rem. C} When the mpply of flutters icnueeees, and the m (lemme. DJ “men the reapply and demaml uf duller: bath increase. E] When Hmhintewenfim bythe Bank eel Canada. lumenmefmdueedtueammfiut ll] E E} A] discrefimary fiecfl policy is elimina—hd. Bl fluctuatime in aggregate are mdueed. E] fiscal pulley multipliers are made WEE; D} there is always a stmctuml deficit. E] there is always a cyclical deficit. 5-2 ECONOMIG me U 3.0 NIRDDUCHON TD Hammers WWTEE 1w? TEST 1 2 PRGFR JOHN FASCH AXIS Use flefigure Home in mm thefallmeerg gamma} 3 “5 r “'5 l * i Q “i Me Me. up D helm "h D MIME!” hr liming] [mummy {ll {Ill g “51"”: i M5: M5: i l E MD MD ElI Whale-Irwin {l lefllhlienerparhr {1936603051 llmldellurel 1‘} til figmifiJ 12} Refer to Figure 25.1. All else emstant. whieh graph best illustrates the effect on M1 at such firmedal 12] g inmvatiurla an the automatic teller machine? A} in} El [bl C} {Cl [1} MI E} nme at the above 13] The aggregate expenditure curve and the aggregate demand mrve are 13} A} the same curve, just wllh diffemrt names. E} linked henueeifthe price lml rises. the aweapendlture cum flflflsdnwmand the aggregate demand curve shite: leftward. C} linkedbecauseif the price level lieu. the aggregatewpelfilmremfiiiflsdm and there is a movement dawn the aggregate demand curve. D} linked becmme if the prime level rises, the aggregate expenditure curve shift: dawn, and there is a movement up theaggreg‘ate demand curve. E} not related at all. ECONOMICS 101:) Q 3.!) IN'I‘RDD-Um TD MACRDECDNGMC‘S WHERE? TEST 1 2 PROFESSOR ICE-IN PASCHAKIS L11: Hmfigfln balm la amhflbfingquuifinfs} hum in!“ fl MollnlManwp-u‘rm Figure 15.1 M] Refer In Figure 25.1 Which m of the following heal describesfl'lcrupmneui this i1me to: H} E In“ in the interest rate? Alamuvemtfmnbtnu Bjammvanentfmmutoc Clammfiumamf Ulnmwmentfmmutuc EJAandB ECDNDLIHCS 1019 Q 1|] INTRODUCTION TD MACEDECDNOMIG mm TES'I‘ I 1 FROFEHJR {Di-EH] PASU-IAKIS Hummumhdmmmmihehflmhgqnmfianm Expanding: {Elam vi mmfl dulu'l pr not] §§§§§§ fl IIIZ'iiIIII 3m 50:] mu m Dig-fillhmhilicnl n! lam “nip-rm] Figure 23.1 This figure describes 111E relationship between amt: mmmpfinn uxpmdituxfl and disposable inn-mu: fur a model crummy. 15] Marla FigumllL'I'he equatim'l nfthe consumption hmdjmis 15} C/ h} C - 1113+ EEYD‘. B} C = TDU+ flEYD‘. C]:-1W+IJ.EYD_ D}C=IDU+I13Y_ 3:1 _ $00 _ 5 E} 11011:- uf the above. Huu‘éjflr be i C: ESL-f- L-r’ CZKGO-{r o-fi’j’ g ECDNDLIIIE'S H110 Q in WUC'I'ION T0 MACROECONOILHEE W 2W? TEST 1 2 PROFESSOR IDLE-l PAWS Us: Hmfigm mummfixflnmfng questinnfsl 15:: Figure 2U ilhsstralu an my initially-r in equilibrium at point a. If government expmdlm'a _-I.--I.i1.- III-III!— I] Ht} .500 $20 but GDP billion: of dulloul Fig-mm Dimminflwlungmnhmnnmywfllmumfluinmcfimof A} All} and 5.451. where wage tales are higher. and nulpul falls In 5381] bfiflm Ii} AD] and 5115'], when! the price have! is higher, and mlpul has risen In 5E2!) billion. C'JAD1mdSASu. whnflwprim Mlislrtigimmndwtputrmmfilflhflfim. D1 Angina 5:151.wa33: rahesmhiglw.andmtputflmm$61flbillim EjAD] Ind 5A51.whemwage ntuandflmpflm mlmhigharfirliuutputismwant at Mbifliun 15]. E lfifiuppmeflutyuurwhnldhgswillbuylflmficfickehfillflsebeingfltsamfifflwpdmufa 1?] E movie dumb? m. you will A.) Enema: your mum}! huldjrlgsbecausemfiesmlessupmfiw. EmmywrcmhhuldingsmkwpywnulufluhlmaIWt. Clmnlavidca. DJ wanttuhuymurcrnmriefichfiandmdmdumymrmwyhaldingsbym F.) bra},-r Ieas tickets and infirm 3m: $511 holdings. 15} er'llch of the founme factors filflum HIE Emmi: uf meigu mgr that trailers- plan to buy? Almmdmmflbrexpmmandflumnm E) lnhrflralmhflmflmduflmrmunfigarflflumqmcfldflmudmngem. C] The Canadian dflmnd fur iJI‘lPfll'lE and the m5: railr— D} both A and Br above E} bum B and 1: above Hi} i ECDNU-tulICS Elli} U 3.0 lNTRDDUCTlDN TD MCRUECDNOMICE WINTER 200? TEST 1 1 PROFESSOR JDHN FAECHAICIS 19] Suppress: time is an increase in Expert: Awning the my operating an its shorthan 191 l ’2 aggregate mpply curve. whichune oftl'le Following best dmthesthesequmm utdungesln the W? A] Inducted expenditure increases. autunnmuus expemlimre increasea realGDF increases; and commpticm itun'eases. E} Autunumaus expenditure incieases. real GDP increases. induced expenditure increases. real GDP increases, etc.. and the price level increases. lawering autmerncrus expenditure, and real GDP increases by a smaller ammt as a result. C} Induced expmdjture increaaer. real GDP increase; submarines inn-eases. real GDP increases mare. autumn-mus espemlitme trier-em again. etc. D} Autonomous expendimre increases. induced expenditure inn'eases. real GDP lncreases. and eonsumptiun increasen E} nutmemmla expenditure increases. real GDP increases. induced expenditure lncreascs. real GDP mm mere. induced expanditure increases again. etc. 2D} Currently the munt‘ry of Ricardia has a budget plan that mulls constant geeeu'rment outlays equal 213] D to $100 billion. and a tax sclmne that is related pusitivety to fuel GDP try the telluwmg equation: Taxes = $25 billion 4- H.1[real What level elf real GDP helium the budget? msleuubfllim : FevefihflL-q mllmjfi 1351mm]: align-“lion 9 1 (15+U‘1V) 'Clfiu) H mm tow—LS" =otl‘f 5:7 awn-f 5 W5 Undieth belewteensuerflmfifltmnieg questimfl's}. \' H ___1—? 2mm e. ‘3‘ Fact 3.! The ecunurny nfTu'Iseltmm has a MPH-311 function of I: 2 l5 1- ll}? . investment equal to 3. government expenditures equal ta 12. experts equal to 2]], and an import function of M :2 DRY. 2!} Cumider Fact 232. Whatisthe equaiimfertheaggregate expendihrrefiinctiunfor thiaecmemy? 211 D mam-w me: C+I+ c: + rm. M 3 EJAE=35+tl5T C}AE=55+H.9Y :, ('54. ¢.r}—1)ay+tzfl+CZO-hfl.27 D}AE=55+D.5Y __ E}AE=45-t15‘t‘ AE — Ef-t- 0.87 221 Cfll'tfi‘ladll' Fact Eameequmbmmmcnetm thiaemnomy? 22} S M215 3155 El _.._ fit; (2] 110 mm figs-3“? tit-'3‘, E] nut calculable with the Manuel-inn given ECONOMICS ‘lfllfl Q 31] INTRODUCTION 'I'U MACRDECWULHCS mm TEST” WWPMAHS 13) iiAE=5iJ+t15Yand T:2I]ii.fl'tmunplannod inventories 23:: D Alidactnaaohyafl. C Blmbjrfi. -fi L ) Cldmaebffli. A ‘7: *Sh+ o c” 2.313 DHI'ICI'EIIEbyflfl. W: 24] Whid'torffl'tnfoflowingopotafimmnacflyrdufitoflleflechulfimlpoflcymflrimg ran? 2-1} A} '11! door-:an ititnaahaomimpoctm rm] GDPmfleo-s it hum-am aggro-gator. supply." B} "A. :hartgc in the budget has on impact on real: GDP." C] "An increase in government upendituman goods and services will imam real GDP." D} "The Mini-am wiflmiae prices-only." E} 1112 inn-ease in taxes will increase real GDP." Zfij'fludfimrtdfmflufloflarwiflslfiflflghmd.teterfaparibm,duem 25} E A} a decrease in the price of the dollar. madamimhcexpefledfimrovahtaolfltdollar. Qaninuemirnhnfipinterefl ratios. Dinninoraoaoitttho prioaot‘ Cmudiangoodsandnrviont E}anincmminflomdianinixafil rates. 215} All also aqual, financial innovation: in Canada have tended to 16) I M shin fl'tedamord for MI in tho-loft. and the demand firM2+ tniha right. 3} shitt the demani for Mir ho the loft, and the demand in]- M1 to the tight. mattiflboflttiwdmmndiorhil andflwdamldfiorflzimflwiefl Dlfliflflwdfirutflforfllhflwmbutluwmedmtmdtnrhfl+ undtartgad. maloflhofltflwdnnandiorhflmdthadamidformno the right. 23’]ConsidorflwmomyofNoTamwhemfluohpaoffl-tefilifuncfionisfl.fi,ondthou-mono 2?] E induced tuna and no imports. If li'te government doairea to shift the AD curve rightward by 55 billion. the oomaot increase in goth uponth is aiszahittim. 1-. B}$3hillian. ._..L-—-- r; .——r gr.- ..L — 2- C1$15bililion Lune: i—G‘Qb “‘4' 2 E, b q . I'- r swam i=- ‘-—'- 2.5 5Q or“? P E: ‘1 .. b .. 2. -1— E. ZEJTMrmonabanImmgarwiflauthoflzoamwluanbasodonfluumreservoscmaiodwhen 23} new deposit: com in. is no ALI create new money in the economy. 5} help banuwm. C] doplato desalted reserves. Di make a profit. E} deplete required reserves. ECONOMIE lull] Q 3.0 INTRKHJUCTDN TUMWLHCS WINTER 1!”? TEST I' 2 PROFESSOR JGHl’tl PASCHAKIE 29} If dollars were m expmm've In. Zurich thin in Torontu, 29] E A} Humppbr ufdoflnrswuuld mm Zurich and stay flu.- alme inTomnto. E] Emulpply ufdollnrs wouldincrmm Zuflcl'tanthmmt-u. C} Ila-demand fardullars waddfirmaeinZufldLand the wpplyufdu-llan wnuld increase in Toronto. D} the demand hr dd:th would increase in Zurich and deem in Tamio. E} the supplyr 1:! dollars would increase- in Zurich, and the demand fur dollars would increase in T'EIIII‘IIIJ. Ufie the tublr W to m:- thefilluwiug Table 111 ‘I‘he followh1g table shows the relafionstflp between aggregate mpendimms and GDP in the hypotl'mlical gummy of Ecnnnwnrld. Each variable is expressed in mt ddflars. 4?. WW SI OT pErYnlr Year F'- M C o 401} U 1 ____—---—" EE 2 7‘5 2m 260 h. Chara «L NE #4 mac am 420 H .15.? 1... a»? 6"” 5'“ F 20-0 - m 7‘“ 301Refo1-mTable1aL1.EMBEmeautmmmusmxmulflplierfmflfisemnmny 3:1] L Mir-fill. __ ‘I —-‘-- “HS-5 :1 £5 1 H ‘9‘ IS 3:3 x—avio or). Ejmnnntbcdetmnimdwithuutmurehfumufian. __ Us: flu.- infilmlfflfl helmn mm Hmfiflmdflg qmfimm Fact 15.2 The Bank of Hahbitnn has chm-H1 tl'll: fallmving initial halarme sheet: Bilhn Bagginsmm alungamidepudlsa lflfl—dnllarhilL 3]} lesider Fact 252. Mm the Bankuanbbilon'sinifialballncellflt. whatisits dutiful reserve 3]} 2 rulju? :1} HI pemt B} It] permt C} III) per-sent D} 5 pennant E] nut calculable with the nwilalfle Mmflm H ECUNDlt-HCS lfllli Q 3D MUCHUN TU MACROECUNUMICS WINTER me? TEST 1 2 PREFESSUR JOHN PASCHA KlS filCu'tsiderFmElAfierBilbo'edepoeltbutbelmemynflteradiuummtbetetelemmmtnf 32} 52 my in the mm? A.) has risen. with currawymdtengedlnd deposits rising. B} has stayed the same. with its manta-anemia W- C] has fallen,. with and Di has stayed the sense. with my falling and deposits rising. E) has fallen,r with currency falling and depnsita staying the same. 33}CunstderFartlfi.2.lfalldubmfismfitebankingsystemhavemesemedefiredmrafinasflte 35] :E Benlt Bl Hobbitmt. what willbe thetutal dungein depuelle within thesystem rewlfingfrmn Bilbn's initial chGflil? Assume thattbemunetarjrdraln rad-elem percent. A1548] ensue €154.20 015125 Elston 34}Cmtsidfiasimpleeemmywitltnehwumetaxenwberetbemlrgimlpmpemitytnmout 3413 of real GDP is 0'35, and the marginal pmpmsity teimport is 0.15. Suppose investing“ rises by seen. its a mu. equilibrium income will rise. with mm: rising by 552531 and mmptimi rising, by I A]1flfl;3flfl metre CHEN}; 01mm Ellflfltfllfl 9. 4.9. (F': e-I I13 a. t We. (and. 351 Which ei thief-allowing qualities-LI illustrate-stilt: ldeanftbemultipller? 35} E A] "Higher expected profits are lending whisker Mt spending by business. and Iwill lead to higher Hemmer spat-ding." B] "Taking the grain elevator out of our small tnwn will dBS-‘lmy Slit} lube." C} "The new stadium will Queenie 52W million in spinefl epmding." D} *niepmjededmtsingevemmttobewtllhunflie Inealretailindustry." E] ellultl'teabow "I 36} ppueetlutfliebankingsystemhnsexceeereseweeuffidbflflm '[hemmteyrrmltiplieristfl 316} L andtheeu dramrafiuisifipement. tltebmltatullylmdmtfilemtalmeyexpsmtm wmtld be 5 billion. ml which 5 billim would be ennui-'3. A} 144; 13.5 B} 144; .722 C} Its; 36 D} He; 11-! E] res: ten 3?} Suppose the multipller is 2 and the sturt—nm aggregate ntpply curve is positiver sloped and 3?} : investment increases by $10 billlm. In the shut run. equilibrium real GDP. will A] decrease by less than fill billion E] increase by lea than $211 billinn. {I} increase by more then fill billion D} be mlfected. E] increase by 52!} billion. JalStxpp-neeflutfitemarginalpmpeneitytncunsumeisflflJl‘ternargineltaxrateiaflliandflte 35‘] E nut-gins! prep-sisin to import is 0.2. It the governith raises autfltflflflfli tam amt km by Hill million, the refilling ell-Inge In real GDP will be A} "$16? B] +515? million. C} #13345 million. D] 41331: million :. ~1 M“ :‘KbngHSlLlif HDIJ'HEL :o'1(l3b) s-is ECONOMICS 1519 Q 3.5 mm TU MACROECONOMIC": W Elli]? TEST I 1 PRUFESSUR IDHN PASCHAHS 39} Whid1 of the following famra many cause the demand and «apply I‘m.- a mfim'a v::I.tr1-e-11a1.T In 39} E: change In apposite directions? Al Thlnmmtedlfiermflflmaaesmdmm E] The world denund hr file natiun‘l exp-om tritium ardlecmuea. E} Thenatian‘a impm'l demand inflamm- decreases. D1 “team-acted futumexmmflm Dr M11 E] Bath A. and D above. dfllSuppmfl'lalnL-urmwjrhdemexpmflutflowdlmudmgemtewillminlhemr 4-D} g future. How 1will flfisflmflm afled mailmdianfltdunge rate? A} The mpply of Canadian duIIa-rs will deem. am! the Elf-Elm rate will increase. Bribe-demand fmflnflhndflhmwillhm,nlfntflngfirdemminfiwsflpplyni Camdian dollars. As a result the Indiana! rate will be Lat-affected but fewer dollars will he Inded. C} The mpply of Canadian dollar: will amen. and the exchange rate will Inn-ease. D} lempply ufflnadimdulhnwlll rim and the Male will decrease. E] flunpply al Canadiandullara will inu‘eaae. and Haemdunge rate willdecreaaa. @ 3;} (9nd” P5”) 020.?F‘f H: C+I+C4(K"M > h: Big-l “l “.— D-a'fidm‘f‘ C—flaflgi cm 10¢: 1 g_S'\‘t’: cmfl : arm-(qua) 3350 B—ll ...
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1010Q-SampleExam-VersionB - YORK UNIVERSITY FACULTY OF ARTS...

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