Econ_199_Aut_05_Exam__3 - Introduction to Macroeconomics...

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Introduction to Macroeconomics Allen R. Sanderson Economics 19900 Autumn 2005 THIRD HOUR EXAMINATION Name (Please Print): ______________________________________ [40 Points Possible] Part I. Multiple Choice. Circle letter corresponding to your answer. One point each; 16 points total. 1. The purchase of U.S. Government securities by the Fed would increase, at least in the short run, all of the following except : a. bank reserves. b. the money supply. c. interest rates. d. investment. e. aggregate demand. 2. The Fed’s primary, ultimate long-term goal or objective is: a. price level stability. b. higher real output and sustained economic growth. c. to keep the money supply from changing. d. to coordinate its monetary policy actions with the federal government’s fiscal policy actions. e. to ensure the solvency and overall health of commercial banks. 3. According to Parkin, the 2001 recession in the U.S. was primarily due to: a. external shocks, including the September 11, 2001, terrorist attacks. b. fiscal policy shocks – more government spending, lower tax revenues. c. monetary policy shocks – higher interest rates, decreases in the money supply. d. slowdown in the productivity growth rates, especially in the high-tech sectors. e. declines in both labor productivity and real wages. 4. “Whatever the shocks are that hit the economy, they hit one crucial variable: ______________ .” a. consumption. b. net exports. c. expectations. d. investment. e. the money supply. 5. provide which of the following services? a.
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This test prep was uploaded on 04/07/2008 for the course ECON 199 taught by Professor Sanderson during the Fall '07 term at UChicago.

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Econ_199_Aut_05_Exam__3 - Introduction to Macroeconomics...

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