Econ_199_Aut_06_Exam__4 - Introduction to Macroeconomics...

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Introduction to Macroeconomics Allen R. Sanderson Economics 19900 Autumn 2006 FOURTH HOUR (AKA FINAL) EXAMINATION Name (Please Print): ______________________________________ [40 Points Possible] Part I. Multiple Choice. Circle letter corresponding to your answer. One point each; 14 points total. 1. Which one of the following scenarios or cases would cause the U.S. dollar to appreciate relative to the Mexican peso? a. an increase in the purchase of crude oil from Mexico b. higher interest rates in Mexico relative to the United States c. high inflation rates in the U.S. coupled with price-level stability in Mexico d. higher rates of economic growth in Mexico relative to the U.S. e. more attractive investment opportunities in Mexico for U.S. investors 2. With regard to growth theories, Parkin notes that: a. an assumption of the neoclassical theory is that technological advances are exogenous and largely the result of chance. b. classical growth theory asserts that real wages will continue to fall over time – and population will grow. c. in the new growth theory, the returns to knowledge are subject to rapidly diminishing returns. d. new growth theorists see economic advances as the result of technological change and productivity shocks. e. neoclassical growth theory predicts that growth rates of economies will diverge over time. 3. Compared with 50 years ago, the value of U.S. international trade as a percent of our GDP has: a. increased in terms of our imports but decreased in terms of our exports. b. remained approximately constant, as has been true of other countries as well. c. grown steadily year by year and is now about 50 percent higher than it was then. d. fluctuated up and down in the interval between 5 and 15 percent. e. increased by 100 percent. 4. The gains from trade depend primarily upon: a. one country having wage rates considerably below another – and a highly valued currency. b.
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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__4 - Introduction to Macroeconomics...

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