{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Midterm 2 Version 3

# Midterm 2 Version 3 - ECON 102 Introductory Macroeconomic...

This preview shows pages 1–20. Sign up to view the full content.

ECON 102: Introductory Macroeconomic Analysis SECOND MIDTERM EXAM, Version 3 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 “3” 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. _______________________________________________

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

View Full Document
1.
Assume the economy is in long-run equilibrium, and then there is a negative supply shock. As a result, in the short run, a. actual GDP will go below potential GDP, and unemployment will go below the natural rate. b. actual GDP will go above potential GDP, and unemployment will go below the natural rate. c. the price level will go up, and unemployment will go below the natural rate d. the price level will go up, and unemployment will go above the natural rate Figure 12-1 2.

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

View Full Document
Refer to Figure 12-1. Assume the economy is at point A. Then, foreign GDP increases, while domestic GDP, and all other variables, remain the same. As a result, the economy moves in the short run to point ____, and in the long run to point ____. a.
D; A b.

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

View Full Document
D; C c.
B; A d.

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

View Full Document
B; C 3.
In exchange for the risks involved with owning stock, stockholders receive all of the following benefits except: a. guaranteed dividend payments b. ownership in the company c. residual claim on firm assets in the event of bankruptcy d. higher returns, on average, over the long run 4.

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

View Full Document
All other things being equal, an increase in net capital outflow (NCO) from the United States will a.
decrease the balance on the U.S. financial account. b.

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

View Full Document
increase the balance on the U.S. financial account. c.
decrease the balance on the U.S. current account. d.

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

View Full Document
leave the U.S. current and financial accounts unchanged. 5.
Which of the following correctly describes the automatic mechanism through which the economy adjusts to long- run equilibrium? a.

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

View Full Document
the leftward shift of the short-run aggregate supply curve that occurs after a recession b.
the rightward shift of the short-run aggregate supply curve that occurs after a recession c.

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

View Full Document
the leftward shift of the aggregate demand curve that occurs after a recession d.
the rightward shift of the aggregate demand curve that occurs after a recession 6. Suppose the loanable funds market is currently in equilibrium. Then, there is a decrease in private saving (S). This will result in a.

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

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

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern