Intermediate Macroeconomic Theory /
Macroeconomic Analysis
(ECON 3560/5040)
Midterm Exam
Part A (15 points)
State whether you think each of the following questions is true (T), false (F), or uncertain
"UNIVERSITY OF THE FREE STATE
DEPARTMENT OF MATHEMATICS 3:. APPLIED MATHEMATICS
WTWQH
TUTORIAL TEST Ii r 23 MARCH 2&13
Time: 15 minutes Marks : II]
Initials and Surname:
Memo
Student Number:
Ans
UNIVERSITY OF THE FREE STATE
DEPARTMENT OF MATHEMATICE 3a APPLIED MATHEMATICS
WTW214
TUTORIAL TEST 3 : 12 APRIL 2013
Time: 15 minute; Marks : ll]
Initials and Surname:
WWO
Student Number:
Answer
Unit 1.1:
Demand & Supply
Theoretical foundations & practical
application
(Chapter 2)
Outcomes
Revise the concepts of demand, supply
surplus and shortages as well as demand
and supply curves.
Calcul
Outcomes
Discuss the characteristics of consumer preferences.
Define, illustrate and discuss the different charateristics
of indifference curves.
Define and explain the MRS.
Define, explain and il
Outcomes
Define the isocost line.
Discuss, calculate and illustrate the slope of the isocost line.
Discuss, calculate and illustrate how the optimal output id determined
given a certain expenditure
Outcomes
Explain and illustrate:
- the price-consumption curve
- the effect of a change in price and a change in income on the
consumers equilibrium for both a normal and inferior product
- the incom
Final Exam (Answers)
(Part 1)
1
C
2
C
3
A
4
B
5
C
6
A
7
C
8
B
9
D
10
D
11
12
13
14
15
16
17
18
19
20
D
B
B
A
B
C
D
B
C
C
(Part 2)
1.
(A) The closed economy model correctly predicted that
national savi
Midterm Exam Answers
(Part 1)
1
2
3
4
5
6
7
8
9
10
D
D
D
D
B
A
C
A
B
C
11
12
13
14
15
16
17
18
19
20
C
B
A
B
C
B
A
D
C
C
(Part 2)
1. (A) r=10
(B) C=950, I=50, r=15
(C) r increases
2. (A) Saving curve
Midterm (Answers)
(Part 1)
1
2
3
4
5
6
7
8
9
10
D
B
C
D
B
C
A
C
C
B
11
12
13
14
15
16
17
18
19
20
B
B
D
D
C
B
D
B
C
A
(Part 2)
1. (A)
(B)
(C)
(D)
(E)
(F)
r=10
C=950, I=100
C=950, I=50, r=15
C=950, I=1
Intermediate Macroeconomic Theory /
Macroeconomic Analysis
(ECON 3560/5040)
Final Exam (Answers)
Part A (15 points)
State whether you think each of the following questions is true (T), false (F), or u
Intermediate Macroeconomic Theory /
Macroeconomic Analysis
(ECON 3560/5040)
Final Exam
Part A (15 points)
State whether you think each of the following questions is true (T), false (F), or uncertain (
A Numerical Example (IS-LM model)
Assume the following model of the economy, with the price level fixed at
1.0:
C = 0.8(Y T)
I = 800 20r
Y=C+I+G
MS = 1,200
T = 1,000
G = 1,000
(M/P)S = (M/P)d = 0.4Y 4
Intermediate Macroeconomic Theory /
Macroeconomic Analysis
(ECON 3560/5040)
Midterm Exam (Answers)
Part A (15 points)
State whether you think each of the following questions is true (T), false (F), or