203-final-summer-2008-answers-v1 - Concordia University...

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Concordia University Department of Economics eConcordia Online Course ECON 203 – Introduction to Macroeconomics Summer 2008 Section OL FINAL EXAMINATION AND ANSWERS STUDENT 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 has 14 pages and it 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 all your answers on this exam. Do not use additional booklets. 4. You are allowed to use a non-programmable calculator. You may use either pen or pencil to provide your answers.
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Part I: Twenty-five Multiple Choice Questions. Please record your answers in the computer scan sheet provided in PENSIL . Remember to write your name and ID on the scan sheet (Total=25 marks). 1. If nominal GDP is $750 million and real GDP is $600 million, the GDP deflator is a. 37.5. b. 66.67. c. 100. d. 125. e. 150. 2. In Arbez, 100,000 people are in the labour force and the unemployment rate is 25%. As Arbez moves out of a recession and jobs increase, 20,000 discouraged workers become "encouraged" to search for jobs. The unemployment rate becomes a. 20%. b. 25.75%. c. 35%. d. 45%. e. None of the above. (=37.5%) 3. If Japan’s GDP is higher than its GNP, then a. Japanese workers working outside of Japan earn more income than foreigners working in Japan. b. Japanese workers working outside of Japan earn less income than foreigners working in Japan. c. Japanese workers working outside of Japan earn the same amount as foreigners working in Japan. d. Japan’s net exports must be positive. e. Japan’s net exports must be negative. 4. Which of the following is FALSE? a. The bigger the multiplier, the higher the impact of a change in any autonomous variable on equilibrium output. b. A discouraged worker is no longer in the labor force. c. Unanticipated inflation benefits borrowers. d. For a given nominal interest rate, the real interest rate is lower when there is a low inflation rate. e. The marginal tax rate has a negative effect on the multiplier. 5. If an economy is heading towards a recession and if the authorities want to minimize the drop in real GDP, they should a. Decrease taxes and decrease money supply. b.
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This note was uploaded on 06/10/2011 for the course ECON 00000112 taught by Professor Ianirvine during the Spring '09 term at Concordia Canada.

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203-final-summer-2008-answers-v1 - Concordia University...

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