midterm ii -mcq form a - answer key

midterm ii -mcq form a - answer key - NAME: _ DATE: _ ECON...

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NAME: ______________________________ DATE: _____________ ECON 1010: P RINCIPLES OF M ACROECONOMICS M IDTERM E XAM II S UMMER 2008 M ULTIPLE C HOICE Q UESTIONS F ORM A
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Page | 2 Answer Key 1. B 2. A 3. D 4. C 5. D 6. C 7. B 8. D 9. C 10. C 11. B 12. D 13. A 14. D 15. B 16. A 17. B 18. A 19. C 20. B 21. C 22. C 23. C 24. B 25. A 26. B 27. B 28. D 29. D 30. C 31. B 32. D 33. C 34. A 35. B 36. B 37. D 38. B 39. C 40. B
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Page | 3 Instructions: Please carefully read each question (underline key points if you have to) then select the best/correct answer. Fill in the bubble sheet neatly so that the grading machine can properly grade your answers. 1. In the “paradox of thrift”: A) profligate behavior during economic tough times has large negative consequences for society. B) increased saving by individuals increases their chances of becoming unemployed. C) firms that are pessimistic about the future lay off the most saving-conscientious workers. D) when families and business are feeling pessimistic about the future, they spend more today. 2. Monetary policy attempts to stabilize the economy during the business cycle through: A) changes in the quantity of money or the interest rate. B) changes in tax policy or government spending. C) discretionary regulation of profits and wages. D) changes in the inflation rate. Use the following to answer question 3: Table: Unemployment and Employment Data Unemployment and Employment Data Population 170 Employed 95 Unemployed and looking for work 5 Discouraged workers 3 Retired 60 All figures are in the millions 3. (Table: Unemployment and Employment Data) According to the accompanying table, the unemployment rate for this economy is: A) 4.8%. B) 5.3%. C) 2.9%. D) 5.0%.
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Page | 4 4. Secular long-run growth is the sustained upward trend in: A) nominal GDP over time. B) aggregate output per person over the business cycle. C) aggregate output per person over several decades. D) real GDP over time. 5. A nominal measure, as opposed to a real measure, is: A) inversely affected by inflation. B) a measure that has been adjusted for changes in prices over time. C) an accurate indicator of the general cost of living. D) a measure that has not been adjusted for changes in prices over time. 6. As opposed to a closed economy, in an open economy: A) trade is only beneficial to the relatively larger economy. B) the exchange rate is determined by the government. C) there is trade in goods, services, or assets with other countries. D) specialization in activities with a comparative advantage is not possible. 7. The exchange rate is: A) the growth rate differential between two countries. B) the value of one currency in terms of another. C) the rate at which goods are sold in a country. D)
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This note was uploaded on 12/16/2011 for the course ECON 1010 taught by Professor Noordeh during the Fall '08 term at York University.

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midterm ii -mcq form a - answer key - NAME: _ DATE: _ ECON...

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