mt3p01 - ECO 2013-01, Third Midterm 2003 Spring. The...

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ECO 2013-01, Third Midterm 2003 Spring. The questions will not be in the same order you saw them, but they are the same. Correct answers at the end. 1) In the above figure, the impact of an improvement in technology is depicted by a movement from point C to A) point . B) point . C) point . D) point . 2) A key feature of the "new growth theory" is the assumption of A) diminishing returns to labor. B) diminishing returns to knowledge. C) no diminishing returns to knowledge. D) no diminishing returns to labor. 3) An increase in the expected inflation rate leads to ________ the short-run Phillips curve. A) a movement upward along B) a movement downward along C) an upward shift of D) a downward shift of 4) As the money wage rate increases A) the long-run aggregate supply curve shifts rightward. B) the short-run aggregate supply curve shifts rightward. C) both the long-run aggregate supply curve and the short-run aggregate supply curve shift leftward. D) the short-run aggregate supply curve shifts leftward. 5) Which one of the following statements about growth theories is correct? A) In the "new growth theory," knowledge is not subject to diminishing returns. B) In neoclassical growth theory, technological progress is the result of rapid increases in saving and investment in capital per person. C) In classical growth theory, real GDP per person in the long run is unrelated to the subsistence wage rate. D) In classical growth theory physical resources are unlimited. 6) As the real interest rate increases, the quantity of investment ________. Therefore, the investment demand curve plotted against the real interest rate is ________. A) increases; upward sloping to the right
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B) increases; downward sloping to the right C) decreases; upward sloping to the right D) decreases; downward sloping to the right 7) Which of the following statements regarding interest rates is correct? A) The return on capital is the nominal interest rate. B) The nominal interest rate is approximately equal to the real interest rate plus the inflation rate. C) The real interest rate rose sharply during the 1990s. D) The real interest rate was relatively constant during the 1980s. 8) If household disposable income decreases, then A) household saving will decrease. B) household saving will increase. C) investment will increase. D) government saving will increase. 9) In the short term, if there is an increase in the money wage rate, then A) short-run aggregate supply increases and the price level rises. B) short-run aggregate supply decreases and the price level rises. C) short-run aggregate demand decreases and the price level falls. D) short-run aggregate demand decreases and the price level rises. 10)
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This note was uploaded on 05/22/2011 for the course ECO 2013 taught by Professor Denslow during the Spring '05 term at University of Florida.

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mt3p01 - ECO 2013-01, Third Midterm 2003 Spring. The...

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