Midterm - Econ305 Intermediate Macroeconomic Theory and...

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Econ305 – Intermediate Macroeconomic Theory and Policy Midterm Exam October 15, 2007 The exam consists of 4 sections. The first section consists of 10 fill-in-the-blanks questions. The second section has 4 short-essay questions. The third section has 10 multiple-choice questions. Finally, the last section has a bonus question. PLEASE ANSWER ALL OF THEM. The duration of the exam is 1 hr 15 minutes. DO NOT OPEN the exams until you are told to do so and STOP writing when you are told that the exam is over. Failure to comply will result in a 10% loss in the grade. Do not forget to write your name and university ID number on the exam booklet. NO PROGRAMMABLE OR FINANCIAL CALCULATORS ARE ALLOWED. Only simple calculators can be used. GOOD LUCK!
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1 Section A: Fill-in-the-blanks (each question is worth 0.5 points) 1. One of the economic statistics used to measure inflation is ______ 2. Assume that a rancher sells McDonald's a quarter-pound of meat for $1 and that McDonald's sells you a hamburger made from that meat for $2. In this case, the value included in GDP should be ______ 3. If disposable income is 4,000, consumption is 3,500, government spending is 1,000, and tax revenues are 800, national saving is equal to ______ 4. According to the model developed in Chapter 3, when taxes decrease consumption ______ 5. Assume that the consumption function is given by C = 150 + 0.85( Y - T ). The marginal propensity to consume is ______ 6. If the money supply increases 12 percent, velocity decreases 4 percent, and the price level increases 5 percent, then the change in real GDP must be ______ percent. 7.
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This note was uploaded on 09/21/2011 for the course PHY 201 at Pennsylvania State University, University Park.

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Midterm - Econ305 Intermediate Macroeconomic Theory and...

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