sample midterm1-ECON 321

# sample midterm1-ECON 321 - ECON 321 Macroeconomics Drexel...

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ECON 321 – Macroeconomics Drexel University Sample Midterm Exam Prof. María Pía Olivero Question 1: (a) Calculate the value of nominal and real GDP in 2006 and 2007 for this economy. Use 2006 as the base year. Good 2006 2007 Price_06 Quantity_06 Price_07 Quantity_07 Food \$5 100 \$1 500 Leisure \$10 200 \$1 1000 Education \$20 100 \$1 500 (b) Calculate the GDP deflator for this economy for both years (using 2006 as the base year). (c) Calculate the chain weighted growth rate of GDP between 2006 and 2007. Question 2: Write the equation used to calculate GDP using the expenditure approach. Question 3: Define a procyclical variable. In your definition be sure to refer to the concepts of “trend” and “deviations from trend”. Question 4: GDP in the economy under study follows the process indicated by the equation GDP t = GDP t_1 e x Play with this equation to show that the parameter x represents the growth rate of GDP.

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Question 5: What are the two possible ways for a government to finance a government budget deficit? In your discussion, be sure to use the equation that best describes these two choices. Question 6:
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## This note was uploaded on 05/16/2011 for the course ECON 202 taught by Professor Iforget during the Spring '08 term at Drexel.

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sample midterm1-ECON 321 - ECON 321 Macroeconomics Drexel...

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