Business Conditions Analysis ECON 736 Sample Midterm Exam Name_
Prof. Yamin Ahmad
Id # _
Instructions: There are two parts to this midterm. Part A consists of multiple choice questions. Please mark the answers to the multiple choice questions on the exam
Quiz 5 (1) The IS-LM model takes: a. b. c. d. National income as exogenous The price level as exogenous The interest rate as exogenous National income and the price level as exogenous
(2) In the Keynesian-cross model, actual expenditure equals: a. b. c. d
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1. Short-run fluctuations in output and employment are called: A. sectoral shifts. B. the classical dichotomy. C. business cycles. D.
Mid2 Review Summer08
1. If the number of employed workers equals 200 million and the number of unemployed workers equals 20 million, the unemployment rate equals _ percent (rounded to the nearest percent). A) 0 B) 9 C) 10 D) 20 2. If the fraction of emplo
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1. If the number of employed workers equals 200 million and the number of unemployed workers equals 20 million, the unemployment rate
1. A fixed-weight price index like the CPI _ the change in the cost of living because it _ take into account that people can substitute less expensive goods for ones that have become more expensive. A) overestimates; does B) overestimates; does not C) und
Quiz 3 (1) The natural rate of unemployment is: a. b. c. d. The average rate of unemployment around which the economy fluctuates About 15% of the labor force A rate that never changes The transition of individuals between employment and unemployment
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Some firms do not instantly adjust the prices they charge in response to changes in demand for all of the following reasons except: a. it is costly to alter prices. b. they do not want to annoy their frequent customers. c. some
Exam 2 (Sample)
1. If the nominal exchange rate falls 10 percent, the domestic price level rises 4 percent, and the foreign price level rises 6 percent, the real exchange rate will fall: A) 0 percent. B) 8 percent. C) 10 percent. D) 12 percent.
2. In a sm
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1. John Maynard Keynes wrote that responsibility for low income and high unemployment in economic downturns should be placed on: A. l
Note: This exam consists of 50 multiple choice questions, 2 points each for the maximum total of 100. Select the best choice and summarize your
answers in the separate answer sheet. Turn in both your answers and the exam when you are finished.
1. The rela
Example: Finding Equilibrium Level of Income Y E=C+I+G in equilibrium E = Y Y=C+I+G Y = 500 + 0.75 (Y T) + 1500 + 600 Y = 500 + 0.75 Y 0.75 (1000) + 1500 + 600 Y 0.75 Y = 500 750 + 1500 + 600 0.25 Y = 1850 Y = (1 / 0.25) 1850 Y = 7400
IS-LM Model Example (with income taxation) Given the following information, derive the equations for the IS and LM curves. C = C0 + c Y D I = I0 + IY Y Ir r G = G0 T = T0 + t Y YD = Y T d (M/P) = L0 + LY Y Lr r M/P = M0 (A) (B) (C) (D) (E) (F) (G) Consump
IS-LM Model Example Given the following information, derive the equations for the IS and LM curves. C = C0 + c Y D I = I0 + IY Y Ir r G = G0 T = T0 YD = Y T d (M/P) = L0 + LY Y Lr r M/P = M0 (A) (B) (C) (D) (E) (F) (G) Consumption Function Investment Func
IS-LM Model Example Given the following information, derive the equations for the IS and LM curves. C = 200 + 0.25 YD I = 150 + 0.25 Y 1000 r G = 250 T = 200 YD = Y T d (M/P) = 2 Y 8000 r M/P = 1,600 (A) (B) (C) (D) (E) (F) (G)
You can use equations (A) t
Chapter 10, Problem #5 , (6th Edition) The objective of this problem is to find the equations for IS and LM and solve for equilibrium level of income and real interest rate. Equations used to solve for IS Curve (Goods Market Equilibrium) Y= C + I + G C =
Mankiw, Chapter 10, Exercise #4, (6th Edition) Given the following model, find the equation for the IS curve. Y= C + I + G C = 125 + 0.75 (Y T) I = 200 10r G = 150 T = 100
According to the Keynesian model, we know that equilibrium occurs somewhere along t
Chapter 10, Exercise #5, 6th Edition Given the following model, find the equation for the IS curve. Y= C + I + G C = 125 + 0.75 (Y T) I = 200 10r G = 150 T = 100
According to the Keynesian model, we know that equilibrium occurs somewhere along the 45-degr
Mankiw, Chapter 10, Exercise #4, (6th Edition) Given the following model, find the equation for the IS curve. Y= C + I + G C = 125 + 0.75 (Y T) I = 200 10r G = 150 T = 100
According to the Keynesian model, we know that equilibrium occurs somewhere along t
Chapter 10, Exercise #2 d. (6th Edition) Given the following model, solve for the equilibrium level of income. Y= C + I + G C = 125 + 0.75 (Y T) I = 100 G = 150 T = 100
Based on the same information in exercise #1, we were able to determine the equilibriu
Chapter 10, Exercise #1 g. (p. 179, Study Guide, 6e) Given the following model, solve for the equilibrium level of income. Y= C + I + G C = 125 + 0.75 (Y T) I = 100 G = 150 T = 100
According to the Keynesian model, we know that equilibrium occurs somewher
Mankiw_Text_Problem_3a_6e Part (a). Derive IS-LM function
Given the following information, derive the equations for the IS and LM curves. C = 200 + 0.25 (Y-T) I = 200 25 r G = 100 T = 100 E=C+I+G We know that in equilibrium E = Y, therefore Y = C + I + G.
Mankiw_Text_Chapter_11_Prob_1_d First lets examine the effect of increasing government purchases and taxes by equal amounts. The effect on income (Y) is determined by the effect of each variable times its respective multiplier. Y = [Govt Purchases Multipl
Response Details: 1- The Golden Rule level of capital accumulation k*gold denotes the steady state with the highest: A. Level of consumption per worker. B. Level of output per worker. C. Growth rate of consumption per worker. D. Growth rate of output per
INTERMEDIATE MACROECONOMICS (ECON 300) SPRING 2008 ILAN NOY PRACTICE MIDTERM
USE GRAPHS WHENEVER THAT IS POSSIBLE!
1) Based on your understanding of the AS-AD model and the IS-LM model, graphically illustrate and explain what effect an increase in governm
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Student ID _ Mark on your scantron: Test from A
Final Exam - Economics 101 (Fall 2007)
You will have 120 minutes to complete this exam. There are 6 pages and 155 points.
Section 1: (30 points total, 3 points each) Record the best answer on your sca
Final Exam Solutions
Economics 101 - Fall 2007
Multiple Choice
Versions A, C: Versions B, D: 1) a 1) c 2) b 2) b 3) c 3) d 4) b 4) a 5) d 5) b 6) a 6) c 7) c 7) d 8) d 8) a 9) c 9) d 10) d 10) c
Problem 1: Neoclassical Model
a) Ys = 10 x 1001/2 x 1001/2 =