Practice Test #1a

Practice Test #1a - ECO 3202 Applied Macroeconomics...

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ECO 3202 Applied Macroeconomics – Practice Test #1a – September 2010 1. To increase the money supply, the Federal Reserve: A) buys government bonds. B) sells government bonds. C) buys corporate stocks. D) sells corporate stocks. 2. In the national income accounts, all of the following are classified as government purchases except : A) payments made to Social Security recipients. B) services provided by police officers. C) purchases of military hardware. D) services provided by U.S. senators. 3. A measure of how fast prices are rising is called the: A) growth rate of real GDP. B) inflation rate. C) unemployment rate. D) market-clearing rate. 4. To avoid double counting in the computation of GDP, only the value of ______ goods are included. A) final B) used C) intermediate D) investment Page 1
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5. An example of an imputed value in the GDP is the: A) value-added of meals cooked at home. B) housing services enjoyed by homeowners. C) services of automobiles to their owners. D) value of illegal drugs sold. 6. The amount of capital in an economy is a ______ and the amount of investment is a ______. A) flow; stock B) stock; flow C) final good; intermediate good D) intermediate good; final good 7. The quantity of money in the United States is essentially controlled by the: A) president of the United States. B) Department of the Treasury. C) Federal Reserve. D) system of commercial banks. 8. The total income of everyone in the economy adjusted for the level of prices is called: A) a recession. B) an inflation. C) real GDP. D) a business fluctuation.
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9. Open-market operations are: A) Commerce Department efforts to open foreign markets to international trade. B) Federal Reserve purchases and sales of government bonds. C) Securities and Exchange Commission rules requiring open disclosure of market trades. D) Treasury Department purchases and sales of the U.S. gold stock. 10. When bread is baked but put away for later sale, this is called: A) waste. B) saving. C) fixed investment. D) investment in inventory. 11. The GDP deflator is equal to: A) the ratio of nominal GDP to real GDP. B) the ratio of real GDP to nominal GDP. C) real GDP minus national GDP. D) nominal GDP minus real GDP. 12. In a simple model of the supply and demand for pizza, the endogenous variables are:
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This note was uploaded on 12/31/2011 for the course ECO 3032 taught by Professor Danielomurgo during the Fall '11 term at FIU.

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Practice Test #1a - ECO 3202 Applied Macroeconomics...

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