Examination of Macroeconomics2003-2004学年第二学期Class：经济试验班021、022.doc

Examination of Macroeconomics20032004学年第二学期Class：经济试验班021、022 Name_ Number_ 08/06/2004.Choose the best answers (210)( ) 1. The difference between NDP and GDP is A. direct tax B. depreciationC. indirect tax D. net export( ) 2. Supposing nominal GDP in 2001y is 360 billion dollars, and price level went up 20% from 2000y to 2001y, then according to the price in 2000y, the real GDP in 2001y is A. 300 billion B. 320 billionC. 340 billion D. 360 billion( ) 3. Suppose the economy is operating at its full-employment-non-inflationary GDP and the MPC is 0.75. The Federal government now finds that it must increase spending on military goods by $21 billion in response to deterioration in the international political situation. To sustain full-employment-non-inflationary GDP government must: A. reduces taxes by $28 billion.B. increase taxes by $21 billion.C. increase taxes by $28 billion.D. reduces taxes by $21 billion.( ) 4. If wage and price are completely flexible, A. AD curve is vertical. B. AS curve is vertical.C. AS curve is up-ward slope. D. AS curve is flat.( ) 5.The four models of the short-run aggregate supply curve presented in Chapter 13 of the textbook include all of the following EXCEPT theA. sticky-wage mode B. sticky-price modelC. industry-misperception model D. imperfect-information model( ) 6 Which of the following reason can we use to explain stagflation phenomenon? ( )A. Cost-push inflation caused by supply shocks.B. Inertial rate of inflation rise.C. Demand-pull inflation caused by aggregate demand rising.D. All above are right.( ) 7. The domestic currency appreciation will A. increase export and decrease import.B. increase import and decrease export.C. increase export and increase import.D. decrease export and decrease import.( ) 8. When consume function is C = a + b Y, if a, b0, then A. MPC APC B. MPC = APCC. MPC APC D. all is available( ) 9.Suppose a commercial bank has demand deposits of $100,000 and the legal reserve ratio is 10 percent. If the banks required and excess reserves are equal, then its total reserves:A. are $30,000. B. are $10,000.C. are $20,000. D. cannot be determined from the given information.( )10. An increase of $1 in government purchases will:A. shift the planned expenditure curve upward by $1.B. shift the IS curve to the right by $1/ (1 - MPC).C. not shift the LM curve.D. all of the above. Explain the following terms. (20 points)1. Endogenous variables and exogenous variables2. Menu costs and shoe-leather costs3. GDP deflator and CPI4. Adaptive expectation and rational expectation5. Real exchange rate and nominal exchange rate . Answer the following questions by drawing or calculating. (10 4)1. Suppose that money demand depends on disposable income, so that the equation for money market becomes M/P=L(r, Y-T). Analyze the impact of a tax cut in a small open economy on the exchange rate and income under both floating and fixed exchange rates.2. Assume an economy has the following production function: Y=F (K, L) = K0.4(E*L)0.6. a. State the production function per effective workerb. For this economy, the savings rate is 25 percent, the depreciation rate is 5 percent, the population growth rate is 2 percent, and the technology growth rate is 3 percent. Calculate the steady-state capital stock per effective worker, output per effective worker, and consumption per effective worker.c. If the technology growth rate increases to 5 percent, what happens to the capital stock per effective worker and output per effective worker? Will this change cause total output to increase or decrease?3. Explain why the aggregate demand curve slopes downward.4. Suppose the Fed reduces the money supply by 5 percenta. What happens to the level of output put and the price level in the short run and in the long run.b. According t