ECON7021: The Macroeconomy Sample mid-semester exam paper
Note: The questions provided in this sample simply give you an idea how the exam paper looks
like. They do not necessarily reflect the focused
Tutorial 1
Question 1
A farmer grows a bushel of wheat and sells it to a miller for $1.00. The miller turns the wheat
into flour and then sells the flour to a baker for $3.00. The baker uses the flour
Tutorial 5
Question 1
What are the various ways in which the Central Bank can influence the money supply?
Question 2
Why might a banking crisis lead to a fall in the money supply?
Question 3
An econom
ECON7020 Practising MCQs 12
1. Economists who view the economy as inherently unstable generally argue that:
A) stabilization policy is too dangerous to be used.
B) the economy should be stimulated whe
4/9/2014
This lecture
ECON7020
The Macroeconomy
accounting identities for the open economy
the small open economy model
what makes it small
how the trade balance and exchange rate are
determined
how p
1/04/2014
This lecture
ECON7020
The Macroeconomy
The classical theory of inflation
causes
effects
social costs
Classical assumes prices are flexible &
markets clear
Lecture 6
Applies to the long run
T
3/11/2014
This lecture
ECON7020
The Macroeconomy
the closed economy Solow-Swan model
how a countrys standard of living depends on its
saving and population growth rates
how to use the Golden Rule to f
3/4/2014
This lecture
ECON7020
The Macroeconomy
modeling the macroeconomy
what determines the economys total
output/income
how the prices of the factors of production are
determined
Lecture 2
how tota
25/03/2014
This lecture
ECON7020
The Macroeconomy
the definition, functions, and types of money
how banks create money
what a central bank is and how it controls the
money supply
Lecture 5
Text treatm
26/02/2014
This lecture
ECON7020
The Macroeconomy
about the issues macroeconomists study
the tools macroeconomists use
some important concepts in macroeconomic
analysis
Lecture 1
Text treatment: Manki
19/03/2014
This lecture
ECON7020
The Macroeconomy
incorporates technological progress in the
Solow-Swan model
about policies to promote growth
about growth empirics: confronting the theory
with facts
1- Differential calculus
1
the cost function, the above equation is just a mathematical representation of the process
of obtaining the marginal cost.
Differentiation rules
We use the following notatio
Univariate differentiation
Concerned with measuring the rate of
change of one variable in response to a
change in another variable.
Finding the slope of a function at a point
Slope of tangent to fu
29/04/2014
This lecture
ECON7020
The Macroeconomy
facts about the business cycle
how the short run differs from the long run
an introduction to aggregate demand
an introduction to aggregate supply in
6/05/2014
This lecture
ECON7020
The Macroeconomy
develops the IS-LM model,
the basis of the aggregate demand curve.
focuses on the short run and assume the price
level is fixed (so, SRAS curve is hori
Tutorial 3
Question 1
Why might an economic policymaker choose the Golden Rule level of capital?
Question 2
In the Solow-Swan model, how does the rate of population growth affect the steady-state leve
Tutorial 2
Question 1
Consider an economy with the following equations:
Y=C+I+G
Y = 5000
G = 1000
T = 1000
C = 250 + 0.75 (Y T)
I = 1000 50r
where r denotes the interest rate (measured as percentage
p
ECON7020: Macroeconomics for Business Mid-Semester Examination, Semester 1, 2011
Part A Multiple Choice Questions
Answer ALL 15 Questions in Part A on the MCQ Answer Sheet provided
Part A is worth 15
ECON7020: Macroeconomics for Business Final Examination, Semester 2, 2011
Part A Answer all questions (20 marks)
Choose the best answer for each of the following questions:
Question 1
In the small ope
ECON7020: Macroeconomics for Business Final Examination, Semester 1, 2011
Part A Answer all questions (20 marks)
Choose the best answer for each of the following questions:
Question 1
If domestic spen
26/05/2014
This lecture
ECON7020
The Macroeconomy
We will look at two policy debates:
1. Should policy be active or passive?
2. Should policy be by rule or discretion?
Lecture 12
Text treatment: Manki
12/05/2014
This lecture
ECON7020
The Macroeconomy
uses the IS-LM model to analyse the effects of
shocks, fiscal & monetary policy.
derives the AD curve from the IS-LM model
goes through several theori
21/05/2014
This lecture
ECON7020
The Macroeconomy
the Mundell-Fleming model
(IS-LM for the small open economy)
causes and effects of interest rate differentials
arguments for fixed vs. floating exchan
ECON7020 Practising MCQs 11
1. Compared to a closed economy, an open economy is one that:
A) allows the exchange rate to float.
B) fixes the exchange rate.
C) trades with other countries.
D) does not
ECON7020 Practising MCQs 10
1. In the ISLM model when government spending rises, in short-run equilibrium, in the
usual case the interest rate _ and output _.
A) rises; falls
B) rises; rises
C) falls;
Tutorial 7
Question 1
If Japan has low inflation and Mexico has high inflation, what will happen to the exchange
rate between the Japanese yen and the Mexican peso?
Question 2
Consider an economy with
Tutorial 2
Question 1
Consider an economy with the following equations:
Y=C+I+G
Y = 5000
G = 1000
T = 1000
C = 250 + 0.75 (Y T)
I = 1000 50r
where r denotes the interest rate (measured as percentage
p
Tutorial 10
Question 1
According to the IS-LM model, what happens to the interest rate, income, consumption, and
investment under the following circumstances?
a) The central bank increases the money s
Tutorial 4 (Assessable)
Please note that this tutorial is assessable. The test will be conducted during your normal
tutorial times. During 15 minutes of your allocated time, you will be asked to answe
Tutorial 6
Question 1
Write the quantity theory of money equation and explain its meaning.
Question 2
If inflation rises from 6 to 8%, what happens to real and nominal interest rates according to
the