Practice question: Chapter 1 & 2
1. The most recent financial crisis started in
A) stock market.
B) bond market.
C) foreign exchange market.
D) housing market.
2. The standard of living typically refers to
A) the rate of unemployment.
: Eshweena Bhuller
Student Id : 7696837
Part I. Numerical Problems
Question 1. Problems and Applications # 2 in textbook chapter 9.
Suppose the Bank of Canada reduces the money supply by 5 percent
(a) What happens to the aggregate demand
ECON 2020, A02
University of Manitoba
ECON 2020, A02: Macroeconomic Theory I
Duration: 45 minutes
Total Marks: 40
Students MUST count the number of pages in this examination question paper before
beginning to write
Practice question ch 5
1. Explain the determinants of investment. Include in your answer an explanation of how a
change in each determinant affects investment.
Answer: Investment depends on the level of sales/output and on the interest rate. As output
Practice question Ch 3 & 4
1. 1) For the U.S. economy, which of the following represents the largest component of GDP?
C) government spending
E) none of the above
2. Disposable income equals
A) income minus sa
Practice question ch7
1. Based on the aggregate supply relation, an increase in current output will cause
A) a shift of the aggregate supply curve.
B) an increase in the current price level.
C) a change in the expected price level this year.
D) an increas