UNIVERSITY OF SYDNEY ECON1002 INTRODUCTORY MACROECONOMICS
Semester One, 2012
Instructions: ________________________________________________________________________________ Time allowed: 60 minutes (plus 5 minutes reading time). The exam consists of 2 sections. Section I includes 10 multiple choice questions worth 1 mark each. To answer in this section, mark the letter representing the best response on the accompanying multiple choice answer sheet. You must use a pencil for the machine to be able to read your answer. You may use a dark ball point pen, if you do not have a pencil but you will not be able to correct your answer. Section II includes 2 short answer questions worth 20 marks in total. You should answer all questions. Your answer should be given in the space provided right below the questions. Any answer written outside the space provided will not be marked. That is, your answers must be succinct. This is a closed book test. Non-programmable calculators may be used. No other aides are allowed. This paper should be returned at the end of the exam. The exam may not be removed from the room. You should remain seated during the exam. ________________________________________________________________________________
2 SECTION I: Answer all 10 questions on the computer answer sheet. 1. Which of the following statements is incorrect? (a) (b) (c) (d) Growth in nominal GDP is the product of growth in real GDP and growth in the price level. The GDP deflator is the price level obtained by dividing nominal GDP by real GDP. Real GDP is also called GDP in constant prices. Growth in real GDP is the growth in nominal GDP minus the growth in the price level.
2. Data for an...