Prelim 2 Econ 1120 revised

Prelim 2 Econ 1120 revised - Name Section Number or TA Name...

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Name: Second Prelim ECON 1120 – Professor Steven Kyle Section Number or TA Name: November 5, 2009 PART I : Multiple Choice, 10 points (each question is worth ½ point). 1. If there is a(n)________ in the number of discouraged workers in the economy from the  pool of unemployed workers,  then all else equal the unemployment rate will _______.  A. Increase, increase B. Increase, decrease C. Decrease, decrease D. Increase, not change E. None of the above  Answer: B 2. If there is downward rigidity of the wage rate, then a recession will cause A. a lower equilibrium quantity of labor at a lower equilibrium wage.  B. a lower equilibrium quantity of labor at the same wage. C. the same equilibrium quantity of labor at a lower equilibrium wage.  D. a lower equilibrium quantity at a higher equilibrium wage.   Answer: B 3. Which of the following statements is FALSE? A. The unemployment rate among teenagers is typically higher than the  unemployment rate in the overall population.  B. The unemployment rate in Europe is typically lower than the unemployment rate  in the United States.   C. The female labor force participation rate is typically lower than the male labor  force participation rate.   D. The Phillips Curve shows that inflation and unemployment are negatively  correlated. E. None of the above F. All of the above  Answer: B 4. Implementation lags for fiscal policy  A. Are longer than those for monetary policy B. Are shorter than those for monetary policy C. About the same as those for monetary policy Answer: A 5. If the U.S. were to pass legislation that would make it easier for people to immigrate to  the U.S. from foreign countries, this would cause
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Name: Second Prelim ECON 1120 – Professor Steven Kyle Section Number or TA Name: November 5, 2009 A. The short-run aggregate supply curve to become nearly vertical at all levels of  output B. The short-run aggregate supply curve to shift to the left C. The short-run aggregate supply curve to become flatter D. The short-run aggregate supply curve to shift to the right Answer: D 6. Refer to the information about Phillips Curves provided in Figure 1 below to answer the  question that follows. Refer to the figure 1. Which combinations of events could move the economy from point  A to point E, and then from point E to point C? A.  A contractionary monetary policy followed by a leftward shift in the AS curve B. A contractionary monetary policy followed by a rightward shift in the AS curve C. An expansionary fiscal policy followed by a leftward shift  in the AS curve D. An expansionary fiscal policy followed by a rightward shift in the AS curve Answer: B SRPC SRPC SRPC D A B C E LRPC U 0 U0 U2 U1 % 3 4 5
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Prelim 2 Econ 1120 revised - Name Section Number or TA Name...

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