Exam_01_White - Department of Economics UNC-Chapel Hill...

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Department of Economics UNC-Chapel Hill (White-paper) Econ420 – Instructor: E. Cabezon Midterm I Summer S1 2011 Last Name: ___________________________Name:_____________________________ Part I: 60%: Mark the correct answer to each of the questions on your scan page Measuring the Economy (questions 1 to 5) 1. Gross domestic product includes a. The current production of all goods and services produced. b. The current production of final goods and services with a country’s borders. c. Exchanges of assets. d. The current production of final goods and services by a country’s citizens. 2. In the base year, the relationship between nominal and real GDP is a. Uncertain. b. One of equality. c. Real GDP is higher. d. Nominal GDP is higher. 3. If the value of a GDP deflator index was 120 for 2005 and 80 for 1982, and Nominal GDP was 1500 in 2005 compared to 500 in 1982, the value of real 2005 GDP in terms of 1982 prices is a. 1000. b. 1250. c. 1500. d. 2250. 4. For 2 years the imports rose, and all other components of aggregate demand remained the same: a. GDP rose. b. GDP fell. c. GDP remained the same. d. Cannot determine whether GDP rose or fell. 5. If you know GDP and you want to know GNP you must subtract: a. Depreciation b. Taxes. c. a and b. d. Net earning from US factors overseas. e. Net exports. 1
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Classical Model (questions 6-13) 6. Technological change that increase the average and marginal productivity of labor in the classical model would cause: a. Output to rise and the price level to rise. b.
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Exam_01_White - Department of Economics UNC-Chapel Hill...

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