Midterm 2 Version 2

Midterm 2 Version 2 - ECON 102 Introductory Macroeconomic...

Info iconThis preview shows pages 1–30. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ECON 102: Introductory Macroeconomic Analysis SECOND MIDTERM EXAM, Version 2 November 10, 2010 This exam contains 30 multiple choice questions. Identify the letter of the choice that best completes the statement or answers the question. Each question is worth an equal number of points. Be sure to answer questions on the bubble answer sheet provided. Any questions answered on the test question sheets will not be counted. Calculators are allowed. _______________________________________________ Please write your name on the test sheet and on the bubble sheet. VERY IMPORTANT : Write “2” in the space provided on the bubble sheet to indicate the version of your exam. Both the test sheet and the bubble sheet must be turned in at the end of the exam. _______________________________________________ 1. Which of the following is not an explanation for why prices can be sticky in the short run? a. Menu costs b. Contracts c. Staggered price setting d. Increases in interest rates 2. Last week, six Swedish kronor could purchase one U.S. dollar. This week, it takes eight Swedish kronor to purchase one U.S. dollar. This change in the value of the dollar will ________ exports from the United States to Sweden and ________ U.S. aggregate demand. a. increase; increase b. decrease; decrease c. increase; decrease d. decrease; increase 3. On the long-run aggregate supply curve, a. an increase in the price level increases the aggregate quantity of GDP supplied. b. an increase in the price level reduces the aggregate quantity of GDP supplied. c. an increase in the price level has no effect on the aggregate quantity of GDP supplied. d. an increase in the price level increases the level of potential GDP. 4. When r increases, a. C goes down, I goes down, NX goes down. b. C goes down, I goes down, NX goes up c. C goes down, I goes up, NX goes down. d. C goes up, I goes up, NX goes down. 5. Assume that currently, nominal interest rates are 1% and inflation expectations are 0%. If the Federal Reserve raises nominal interest rates to 2% and inflation expectations rise to 2%, all other things being equal, what is the most likely effect on output and the price level in the short run ? a. Output will rise and the price level will fall. b. Output will fall and the price level will rise. c. Output will fall and the price level will fall. d. Output will rise and the price level will rise. d. Output will rise and the price level will rise . 6. Which of the following will shift the aggregate demand curve to the left, all other things being equal? a. an increase in interest rates b. an increase in disposable income c. an increase in expected profits for firms d. an increase in net exports 7. A Big Mac costs $2.40 in the United States and 4.60 reals in Brazil. If the exchange rate is 2 reals per dollar, purchasing power parity predicts that a. a....
View Full Document

{[ snackBarMessage ]}

Page1 / 155

Midterm 2 Version 2 - ECON 102 Introductory Macroeconomic...

This preview shows document pages 1 - 30. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online