Macroeconomics Numericals
ECON 4020
Spring 2008
Midterm exam 1
Name __________________________________________
This is a closed book exam.
Exam is out of 100 points.
Answer all the questions.
Show all your calculations.
Explain your answers in the essay type questions.
You have 50 minutes to finish this exam.
Academic Integrity: In cases of a violation of academic integrity it is the policy of the Department of Economics to impose the most severe penalties that are most consistent with University guidelines.
GOOD LUCK!
1. (4 points) Average labor productivity is the (a) amount of workers per machine. (b) amount of machines per worker. (c) ratio of employed to unemployed workers. (d) amount of output per worker. Answer: D
2. (4 points) A country has a trade deficit when (a) imports exceed exports. (b) imports equal exports. (c) exports exceed imports. (d) export is zero. Answer: A
3. (4 points) Classical economists argue that (a) the government should have an active role in the economy. (b) government policies will be ineffective and counterproductive. (c) the government should actively intervene in the economy to eliminate business cycles. (d) wages and prices don’t adjust quickly, so the economy is slow to return to equilibrium. Answer: B
4. (4 points) The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon.
| |2003 | |2004 |
|Good |Quantity |Price | |Quantity |Price |
|Milk | 500 |$2 | | 900 |$3 |
|Butter |2000 |$1 | |3000 |$2 |
Between 2003 and 2004, nominal GDP grew by (a) 60.0%. (b) 65.5%. (c) 83.3%. (d)
Spring 2008
Midterm exam 1
Name __________________________________________
This is a closed book exam.
Exam is out of 100 points.
Answer all the questions.
Show all your calculations.
Explain your answers in the essay type questions.
You have 50 minutes to finish this exam.
Academic Integrity: In cases of a violation of academic integrity it is the policy of the Department of Economics to impose the most severe penalties that are most consistent with University guidelines.
GOOD LUCK!
1. (4 points) Average labor productivity is the (a) amount of workers per machine. (b) amount of machines per worker. (c) ratio of employed to unemployed workers. (d) amount of output per worker. Answer: D
2. (4 points) A country has a trade deficit when (a) imports exceed exports. (b) imports equal exports. (c) exports exceed imports. (d) export is zero. Answer: A
3. (4 points) Classical economists argue that (a) the government should have an active role in the economy. (b) government policies will be ineffective and counterproductive. (c) the government should actively intervene in the economy to eliminate business cycles. (d) wages and prices don’t adjust quickly, so the economy is slow to return to equilibrium. Answer: B
4. (4 points) The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon.
| |2003 | |2004 |
|Good |Quantity |Price | |Quantity |Price |
|Milk | 500 |$2 | | 900 |$3 |
|Butter |2000 |$1 | |3000 |$2 |
Between 2003 and 2004, nominal GDP grew by (a) 60.0%. (b) 65.5%. (c) 83.3%. (d)