Mid-term_2_examples_4-10

Mid-term_2_examples_4-10 - SAMPLE EXAM QUESTIONS FOR...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Page 1 SAMPLE EXAM QUESTIONS FOR ECON3310 MIDTERM II Content: Mankiw Chapters 6, 7, 8, 9, 10, 11, 13 PART I. Short questions: 4 out of 5 (40% of total marks) 1. Explain what type of wage rigidity is most likely to affect the unemployment rates of the following types of workers: a. workers with low marginal labor productivity; b. workers seeking jobs that are typically unionized, such as longshoremen and electricians; and c. workers engaged in creative work that is not easily monitored. 2. Suppose a government is able to permanently reduce its budget deficit. Use the Solow growth model of Chapter 8 to graphically illustrate the impact of a permanent government deficit reduction on the steady-state capital-labor ratio and the steady-state level of output per worker. Be sure to label the: a. axes; b. curves; c. initial steady-state levels; d. terminal steady-state levels; and e. the direction the curves shift. 3. Assume that an economy is described by the IS curve Y = 3,600 + 3 G – 2 T – 150 r and the LM curve Y = 2 M / P + 100 r [or r = 0.01 Y – 0.02( M / P )]. The investment function for this economy is 1,000 – 50 r . The consumption function is C = 200 + (2/3)( Y T ). Long-run equilibrium output for this economy is 4,000. The price level is 1.0 and
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Mid-term_2_examples_4-10 - SAMPLE EXAM QUESTIONS FOR...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online