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
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
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)
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
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
Midterm (Answers)
(Part 1)
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2
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9
10
D
B
C
D
B
C
A
C
C
B
11
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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
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
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