W07_econ-2410_assignment1

W07_econ-2410_assignment1 - Econ*2410 Name Lab UNIVERSITY...

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Econ*2410 Name:______________________ Lab:__ UNIVERSITY OF GUELPH College of Management and Economics Department of Economics ECON*2410: INTERMEDIATE MACROECONOMICS Winter Semester 2007 Homework assignment#1 (Due date 01-30-2007) I. Multiple Choice Questions (5 points) 1) The relationship between the level of growth of an economic variable, g t , and its level, y , is best approximated as a) 1 = t t t y y g b) 1 log log = t t t y y g c) 1 log log = t t t g g y d) 1 log = t t t y y g 2) According to the Lucas critique , changes in economic policy are likely to have important effects on a) the available amounts of natural resources. b) the behaviour of consumers and firms. c) the preferences of consumers. d) none of the above. 3) When a country has a current account deficit, the country a) is always borrowing from abroad. b) is always lending abroad. c) always has a large government budget surplus. d) always has a large government budget deficit. 4) Acme Steel Co. produces 1 000 tonnes of steel. Steel sells for $30 per tonne. Acme pays wages of $10 000. Acme buys $15 000 worth of coal, which is needed to produce the steel. Acme pays $2 000 in taxes. Acme’s contribution to GDP is a) $15 000. b) $20 000. c) $30 000. d) $45 000.
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Econ*2410 Name:______________________ Lab:__ 5) Additions to inventory are a) not counted as an expenditure in GDP accounting. b)
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W07_econ-2410_assignment1 - Econ*2410 Name Lab UNIVERSITY...

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