Pratice Exam Macroeconomics
Faculty of Economics and Business Administration Exam: Macroeconomics 3.1 Practice Exam Code: not applicable (Practice Exam) Coordinator: Prof. dr. E.J. Bartelsman Date: not applicable (Practice Exam) Time: not applicable (Practice Exam) Duration: 2 hours and 45 minutes Calculator allowed: No Graphical calculator allowed: No Number of questions: 8 (4 True/False/Uncertain Questions, 2 Short Problems, 2 Long Problems) Type of questions: Open Answer in: English Remarks: It is a good idea to look over the entire exam before starting to write. Please be concise and write legibly. Credit score: The maximum credit score is 100. Each True/False/Uncertain question is worth 5 credits, each short problem is worth 15 credits, each long problem is worth 25 credits. Grades: The grades will be made public on: not applicable (Practice Exam) Inspection: not applicable (Practice Exam) Number of pages: 18 (including front page)
Good luck!
Part I: True, False, or Uncertain (20 credits) Say whether the following statements are true, false or uncertain. Justify your answer in a couple of paragraphs. Credit is given for the quality of the justification, so answering “true” without explanation does not give points even if “true” is correct. “Uncertain” is the same as “it depends”, and you should explain what the answer depends upon. If appropriate, you can support your argument through relevant graphs. 1. If a small economy is initially open but then it is cut off from the international credit market, then both consumption and investment in this economy will decrease. Your answer with justification (including graphs if applicable):
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Credits: xxx/x5
2
2. Shocks to government spending cannot be an important cause of business cycles, since they induce the wrong comovement between employment and output. Your answer with justification (including
Good luck!
Part I: True, False, or Uncertain (20 credits) Say whether the following statements are true, false or uncertain. Justify your answer in a couple of paragraphs. Credit is given for the quality of the justification, so answering “true” without explanation does not give points even if “true” is correct. “Uncertain” is the same as “it depends”, and you should explain what the answer depends upon. If appropriate, you can support your argument through relevant graphs. 1. If a small economy is initially open but then it is cut off from the international credit market, then both consumption and investment in this economy will decrease. Your answer with justification (including graphs if applicable):
dummy
Credits: xxx/x5
2
2. Shocks to government spending cannot be an important cause of business cycles, since they induce the wrong comovement between employment and output. Your answer with justification (including