203-final-winter-2010-answers-POST

203-final-winter-2010-answers-POST - Concordia University...

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Concordia University Department of Economics ECON 203 – INTRODUCTION TO MACROECONOMICS Winter 2010 COMMON FINAL EXAMINATION VERSION 1 AND ANSWERS LAST NAME: ___________________________ FIRST NAME:_______________________________ STUDENT NUMBER: __________________________________________________ Please read all instructions carefully. 1. This is a three-hour exam (180 minutes). The questions are worth 150 marks altogether. It is a good strategy to spend one minute per mark for your answers (150 minutes) and spend the remaining time (30 minutes) to review your answers. 2. The exam consists of four parts: (i) Part I: 25 multiple-choice questions (25 marks); (ii) Part II: Choose 5 out of 7 “true-false” questions (25 marks); (iii) Part III: Choose 4 out of 5 long questions (60 marks), and (iv) Part IV: One “current events” question (40 marks). 3. Write your answers for the multiple-choice questions on the computer scan-sheet with a pencil . For Parts II to IV, write all your answers on this exam. Do not use additional booklets. 4. You are allowed to use a non-programmable calculator and a dictionary. You may use either pen or pencil to provide your answers for Parts II to IV. Grades: Part I: __________ Part II: __________ Part III: __________ Part IV: __________ Total:
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Part I: Multiple Choice Questions. Write all answers on the computer sheet with a PENCIL (Total=25 marks). 1. A saving deposit in a bank is considered __________ of that bank. a) A liability b) An asset. c) Net worth. d) Capital. e) None of the above. 2. In the economy of Rosemont, everyone is above the age of 15. In Rosemont, 40 people have jobs, 10 people are not working but are searching for work, and 100 people do not work or seek work. The unemployment rate is _ and working age population is __. d) e) None of the above. 3. An example of "investment" in computing real GDP using the expenditure approach is the purchase of a) A new cooking oven by Tim Horton’s to bake donuts. b) 100 shares of Air Canada. c) Batteries by Ford company to put in their cars. d) A 100-year old house by a married couple. e) Both a) and c) are correct. 4. Empirical evidence for Canada suggests that if actual GDP grows by 2 percent a year and potential GDP grows by 3 percent a year, then a) The unemployment rate will be unchanged. b) The unemployment rate will fall by 1 percentage point. c) The unemployment rate will rise by ½ of one percentage point . d) The economy will experience an inflationary gap. e) None of the above. 5. If a $100 billion increase in investment spending creates $100 billion of new income in the first round of the multiplier process and $50 billion in the second round, the multiplier in the economy is: a) 2.5. b) 5.
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203-final-winter-2010-answers-POST - Concordia University...

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