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 (U)
and briey explain your answer. No credit will be g
"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:
Answer ali question:
1. Use polar coordinates to find the
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 all questions.
1. Evaluate the line integral I x21; :1
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.
Calculate equilibrium price and quantity
given the demand and
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 illustrate how the budget line (and
slope) can change.
C
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.
Discuss, calculate and illustrate how costs will be
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 income-consumption curve
- How the IE and SE can be used to
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 saving would fall and the interest rate would
rise. But, th
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 shifts to the right and investment demand
curve shifts
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=100, r=20
r=-6.5
r increases
2. (A) The labor demand cur
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 uncertain (U)
and briey explain your answer. No credit w
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 (U)
and briey explain your answer. No credit will be giv
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 40r
A) Write a numerical formula for the IS curve, showi
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 uncertain (U)
and briey explain your answer. No credit