Econ_199_Aut_06_Exam__1 - Introduction to Macroeconomics...

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Allen R. Sanderson Economics 19900 Autumn 2006 FIRST HOUR EXAMINATION Name (Please Print): ______________________________________ [40 Points Possible] Part I. Multiple Choice. Circle letter corresponding to your answer. One point each; 20 points total. 1. Real GDP: a. is the maximum output that can be produced when resources are fully employed. b. includes (or measures) everything produced in an economy in a given time period, generally one year. c. is normally a larger figure or number than nominal GDP for the typical (or a given) year. d. could be larger, smaller or the same as potential GDP. e. equals potential GDP minus imports, then adjusted for the rate of price level change. 2. Which one of the following variables is a stock? a. consumption b. investment c. wealth d. GDP e. Social Security payments to retired workers 3. In the U.S., business cycles are identified and dated by: a. the Office of Management and Budget (OMB) within the central/federal government. b. the National Bureau of Economic Research. c. The Federal Reserve System. d. The Council of Economic Advisers. e. The Bureau of Economic Analysis (in the Commerce Department). 4. The mildest and shortest of recent U.S. recessions was in: a. 1973. b. 1982. c. 1991. d. 1998. e. 2001. 5. Which of the following is incorrect ? a. The current “natural rate of unemployment” for the U.S. is thought to be in the 4-6% range. b. The unemployment rate equals the percent of the labor force currently unemployed. c. When people drop out of the labor force because they were unable to find a job, the measured unemployment rate will decrease. d. Whether at peaks or troughs of business cycles, the duration of unemployment in the U.S. is most commonly or typically about 5 weeks. e. Workers locked out by their employers during labor disputes are still considered employed. 6. Real GDP per capita can be criticized as a measure of economic welfare because: a. inflation distorts the actual number or amount of goods and services actually produced. b. it includes intermediate goods. c. it ignores the value of leisure time and the value of goods produced in the home. d. production has come mainly at the expense of environmental degradation, and exploiting low-wage workers in other counting, leaving us decidedly worse off as a nation. e.
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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_06_Exam__1 - Introduction to Macroeconomics...

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