Term Test 3 Final Solutions

Term Test 3 Final Solutions - D First Letter o f L AST NAME...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
-------------------- -- ----------------------------- D First Letter of LAST NAME EC0202: Macroeconomics University of Toronto Mississauga Term Test 3, March 12, 2010 FalllWinter 2009-2010 Student Name: ______ -- __ ---=-A.!. .-N _! _W_t_R. __ "_ E ---'rL---- _ ____ ~ __ Student Number: You must show all your work to receive full credit. This test will start promptly at 9:10am and you will have 50 minutes to complete the exam. All writing instruments must be down when time has been called and you must pass your exam to the aisle. If you finish the exam with less than 10 minutes before lOam, please remain seated with your exam until time is up. Be sure to print and sign your name on the sign-in sheet before you leave the exam room. PLEASE DO NOT TURN THIS SHEET OVER TO LOOK THROUGH THE EXAM UNTIL EVERYONE HAS AN EXAM IN FRONT OF THEM AND YOU ARE TOLD TO BEGIN. Question Points (Points Possible) Earned 1 (20) 2 (14) 3 (16) Total Points (out of a possible 50) $V =$zl~[lI(l+i)n] I l-[lI(l+i)] $~ = 1 [1 + 1 + ... ]$Z/ (1 + i) (1 + i) Note: You mayor may not find the following equations of use.
Background image of page 1

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

View Full DocumentRight Arrow Icon
1. (20 points total) True/FalselUncertain. Read the statement carefully. Decide whether the statement is true, false or uncertain and explain the arguments for your answer. Answers without an explanation will not receive credit. If the answer you give is based on any assumptions, be sure to state them clearly. a. (6 points) When making cross-country comparisons of economic growth over time, it is important to use adjusted real GDP numbers. Economists construct measures of purchasing power by using a common set of quantities and different prices to measure output. False. In order to accurately calculate the adjusted real GDP, you should use a common set of prices (say Canadian prices) and different quantities (# of loaves of bread produces in Kenya, Canada). By using a common set of prices, you eliminate the problem of varying exchange rates over time. This is also especially important for poorer countries, where price levels for basic goods, are often much lower. b. (7 points) Assume the economy is currently at a steady state. In a model without
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/02/2011 for the course ECON eco200 taught by Professor Wolfson during the Spring '11 term at University of Toronto.

Page1 / 6

Term Test 3 Final Solutions - D First Letter o f L AST NAME...

This preview shows document pages 1 - 3. Sign up to view the full document.

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