宏观经济学 双语 练习题.doc

ExercisesI. Definition1. GDP deflator 2. Real exchange rate; 3. Risk aversion;4. Investment; 5. Transfer payments; 6. Indexation 7. Efficiency wages; 8. Catch-up effect; 9. Rule of 70; 10. Marginal propensity to consume (MPC); 11. Nominal variables; 12. net capital outflow; 13. Purchasing-power parity; 14. Monetary neutrality; 15. Frictional unemployment; 16. The natural rate of unemployment; 17. Crowding out; 18. classical dichotomy ; 19. Structural unemployment; 20. Reserve requirement; 21. Fisher Effect; 22 fiscal policy; 23. automatic stabilizers; 24.multiplier effect; 25. the theory of liquidity preference; 26. recession; 27. Adverse selection 28. depreciate 29. Fiat money；30 Present valueII. Multiple choices:1. At a given real exchange rate, which of the following, by itself, would increase the supply of dollars in the market for foreign-currency exchange?a.foreign citizens buy more U.S. bondsb.U.S. citizens buy more foreign bondsc.foreign citizens buy more U.S. goodsd.U.S. citizens buy more foreign goodsANS: B2A typical worker in Italy can produce 24 units of product in an eight-hour day, while a typical worker in Poland can produce 25 units of product in a 10-hour day. We can conclude thata.worker productivity in Poland is higher than in Italy.b.the standard of living will likely be higher in Italy than in Pductivity is 3 units per hour for the Polish worker and 21/2 units per hour for the Italian worker.d.there will be no difference between the standard of living in Italy and Poland.ANS: B3Which of the following statements about GDP is correct?a.GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.b.Money continuously flows from households to government and then back to households, and GDP measures this flow of money.c.GDP is to a nations economy as household income is to a household.d.All of the above are correct.ANS: C4If the multiplier is 2.5, the MPC isa.0.2.b.0.6.c.0.75.d.1.00.ANS: B5When the Fed lowers the growth rate of the money supply, it must take into accounta.only the short-run effect on production.b.only the short-run effects on inflation and production.c.only the long-run effect on inflation.d.the long-run effect on inflation as well as the short-run effect on production.ANS: D6Which of the following transactions adds to U.S. GDP for 2006?a.In 2006, Ashley sells a car that she bought in 2002 to William for $5,000.b.An American management consultant works in Mexico during the summer of 2006 and earns the equivalent of $30,000 during that time.c.When John and Jennifer were both single, they lived in separate apartments and each paid $750 in rent. John and Jennifer got married in 2006 and they bought a house that, according to reliable estimates, could be rented for $1,600 per month.d.None of the above transactions adds to GDP for 2006.ANS: C7The five debates over macroeconomic policy exist mostly becausea.economists disagree over basic issues such as the importance of saving for economic growth.b.there are tradeoffs and people disagree about the best way to deal with them.c.politicians offer misleading information.d.people fail to clearly see the benefits or the costs of most changes.ANS: B8A higher rate of return on saving hasa.an income effect that discourages saving and a substitution effect that encourages saving.b.an income effect that encourages saving and a substitution effect that discourages saving.c.income and substitution effects that both decrease saving.d.income and substitution effects that both increase saving.ANS: A9In a particular country in 1995, the average worker needed to work 25 hours to produce 40 units of output. In that same country in 2005, the average worker needed to work 40 hours to produce 68 units of output. In that country, the productivity of the average workera.decreased by 1.7 percent between 1995 and 2005.b.remained unchanged between 1995 and 2005.c.increased by 4.75 percent between 1995 and 2005.d.increased by 6.25 percent between 1995 and 2005.ANS: D10Household spending on education is included in a.consumption, although it might be argued that it would fit better in investment.b.investment, although it might be argued that it would fit better in ernment spending, based on the fact that most higher-education students attend publicly-supported colleges and universities.d.None of the above is correct; in general, household spending on services is not included in any component of GDP.ANS: ATable 1Prices and QuantitiesYearPrice ofSandwichesQuantity ofSandwichesPrice ofMagazinesQuantity ofMagazines2006$4.00100$2.001802007$5.00120$2.502002008$6.00150$3.5020011.Refer to Table 1. Using 2006 as the base year, for 2007,a.real GDP is $880 and the GDP deflator is 80.b.real GDP is $880 and the GDP deflator is 125.c.real GDP is $950 and the GDP deflator is 95.d.real GDP is $950 and the GDP deflator is 116.ANS: B12. The market basket used to calculate the CPI in Aquilonia is 4 loaves of bread, 6 gallons of milk, 2 shirts and 2 pants. In 2005, bread cost $1.00 per loaf, milk cost $1.50 per gallon, shirts cost $6.00 each and pants cost $10.00 per pair. In 2006, bread cost $1.50 per loaf, milk cost $2.00 per gallon, shirts cost $7.00 each and pants cost $12.00 per pair. Using 2005 as the base year, what was Aquilonias inflation rate in 2006?a.30 percentb.24.4 percentc.21.6 percentd.It is impossible to determine without knowing the base year.ANS: B13. In the United States, if the price of imported oil rises so that the price of gasoline and heating oil rise thea.GDP deflator rises much more than does the consumer price index.b.consumer price index rises much more than does the GDP deflator.c.GDP deflator and the consumer price index rise by about the same amount.d.consumer price index rises slightly more than does the GDP deflator.ANS: B14. You know that a candy bar cost five cents in 1962. You also know the CPI for 1962 and the CPI for today. Which of the following would you use to compute the price of the candy bar in todays prices?a.five cents (1962 CPI/ todays CPI)b.five cents (1962 CPI/(todays CPI - 1962 CPI)c.five cents (todays CPI/1962 CPI)d.five cents todays CPI - five cents 1962 CPI.ANS: C15GDP is defined as the market value of all final goods and services produceda.by the citizens of a country, regardless of where they live, in a given period of time; this definition focuses on GDP as a measure of total income.b.by the citizens of a country, regardless of where they live, in a given period of time; this definition focuses on GDP as a measure of total expenditure.c.within a country in a given period of time; this definition focuses on GDP as a measure of total income.d.within a country in a given period of time; this definition focuses on GDP as a measure of total expenditure.ANS: D16Suppose there are only two firms in an economy: Cowhide, Inc. produces leather and sells it to Couches, Inc., which produces and sells leather furniture. With each $1,000 of leather that it buys from Cowhide, Inc., Couches, Inc. produces a couch and sells it for $2,000. Neither firm had any inventory at the beginning of 2006. During that year, Cowhide produced enough leather for 20 couches. Couches, Inc. bought 80% of that leather for $16,000 and promised to buy the remaining 20% for $4,000 in 2007. Couches, Inc. produced 16 couches during 2006 and sold each one during that year for $2,000. What was the economys GDP for the year?a.$32,000b.$36,000c.$40,000d.$52,000ANS: B17Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?a.Both item (1) and item (2) are included in the consumption component of GDP.b.Item (1) is included in the consumption component, while item (2) is included in the investment component.c.Item (1) is included in the investment component, while item (2) is included in the consumption component.d.Only item (2) is included in GDP and it is included in the investment component.ANS: B18. Suppose the nominal interest rate is 6 percent and the expected inflation rate is 4 percent.a.The dollar value of savings increases by 10 percent and the value of savings measured in goods is expected to increase by 6 percentb.The dollar value of savings increases by 10 percent and the value of savings measured in goods is expected to increase by 4 percentc.The dollar value of savings increases by 6 percent and the value of savings in goods is expected to increase by 4 percentd.The dollar value of savings increases by 6 percent and the value of savings in goods is expected to increase by 2 percentANS: D19. Which of the following is correct?a.Although levels of real GDP per person vary substantially from country to country, the growth rate of real GDP per person is similar across countries.b.Productivity is not closely linked to government policies.c.The level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge of economic progress.d.Productivity may be measured by the growth rate of real GDP per person.ANS: C20 If there are constant returns to scale, the production function can be written asa.xY = 2xAF(L, K, H, N).b.Y/L = A F(xL, xK, xH, xN).c.Y/L = A F( 1, K/L, H/L, N/L).d.L = AF(Y, K, H, N).ANS: C21Which of the following items is counted as part of government purchases?a.The federal government pays $2,000 in Social Security benefits to a retired person.b.The city of Des Moines, Iowa pays $10,000 to a tree-trimming firm to trim trees along city boulevards.c.The state of Iowa pays $1,000 to help a low-income family pay its medical bills.d.All of the above are correct.ANS: BTable 1:Prices and QuantitiesYearPrice ofSandwichesQuantity ofSandwichesPrice ofMagazinesQuantity ofMagazines2006$4.00100$2.001802007$5.00120$2.502002008$6.00150$3.5020022. Refer to Table 1. Using 2007 as the base year, for 2006,a.real GDP is $760 and the GDP deflator is 100.b.real GDP is $760 and the GDP deflator is 125.c.real GDP is $880 and the GDP deflator is 80.d.real GDP is $950 and the GDP deflator is 80.ANS: D23On the basis of theory and empirical evidence economists have concluded several things concerning growth. Which of the following is not one of these conclusions?a.A relatively simple way to increase growth rates permanently is to increase a countrys saving rate.b.Growth is generally inhibited rather than promoted by policies like protective tariffs.c.Well-established property rights that are enforced by fair and efficient courts are important to economic growth.d.Countries with few domestic natural resources still have opportunities for economic growth.ANS: A24In a closed economy, national saving equalsa.investment.b.income minus the sum of consumption and government purchases.c.private saving plus public saving.d.All of the above are correct.ANS: D25Suppose that a country has only a sales tax. Now suppose it replaces the sales tax with an income tax that includes a tax on interest income. This would make erest rates and the quantity of loanable funds erest rates rise and the quantity of loanable funds erest rates fall and the quantity of loanable funds erest rates and the quantity of loanable funds fall.ANS: B26Hector puts $150 into an account when the interest rate is 4 percent. Later he checks his balance and finds he has about $168.73. How long did Hector wait to check his balance?a.3 yearsb.3.5 yearsc.4 yearsd.4.5 yearsANS: A27You have a choice among three options. Option 1: receive $900 immediately. Option 2: receive $1,200 one year from now. Option 3: receive $2,000 five years from now. The interest rate is 15% per year. Rank these three options from highest present value to lowest present value.a.Option 1; Option 2; Option 3b.Option 3; Option 2; Option 1c.Option 2; Option 3; Option 1d.Option 3; Option 1; Option 2ANS: CTable 2:YearPeachesPecans2005$11 per bushel$6 per bushel2006$9 per bushel$10 per bushel28. Refer to Table 2. Suppose the typical consumer basket consists of 10 bushels of peaches and 15 bushels of pecans. Using 2005 as the base year, the CPI for 2006 isa.100.b.120.c.200.d.240.ANS: B29. Renee earned a salary of $60,000 in 2001 and $80,000 in 2006. The consumer price index was 177 for 2001 and 221.25 for 2006. Renees 2006 salary in 2001 dollars isa.$45,198; thus, Renees purchasing power decreased between 2001 and 2006.b.$64,000; thus, Renees purchasing power increased between 2001 and 2006.c.$64,000; thus, Renees purchasing power decreased between 2001 and 2006.d.$75,000; thus, Renees purchasing power increased between 2001 and 2006.ANS: B30. Jake loaned Elwood $5,000 for one year at a nominal interest rate of 10 percent. After Elwood repaid the loan in full, Jake complained that he could buy 4 percent fewer goods with the money Elwood gave him than he could before he loaned Elwood the $5,000. From this we can conclude that the rate of inflation during the year wasa.2.5 percent.b.6 percent.c.8 percent.d.14 percent.ANS: DFigure 131.Refer to Figure 1. Which of the graphs above is consistent with positive but diminishing marginal utility?a.Diagram Ab.Diagram Bc.Diagram Cd.Diagram DANS: C32. Which of the following is not correct?a.A risk averse person might be willing to hold stocks.b.Other things the same, a portfolio with the stocks of a large number of companies has less risk.c.Other things the same, the larger a portion of savings a person invests in stocks, the greater their expected return.d.Diversification can eliminate market risk but not firm-specific risk.ANS: D33Which of the following is correct?a.Managed funds typically have a higher return than indexed funds. This tends to refute the efficient market hypothesis.b.Managed funds typically have a higher return than indexed funds. This tends to support the efficient market hypothesis.c.Index funds typically have a higher rate of return than managed funds. This tends to refute the efficient market hypothesis.d.Index funds typically have a higher rate of return than managed funds. This tends to support the efficient market hypothesis.ANS: D34Monetary neutrality implies that an increase in the quantity of money willa.increase employment.b.increase the price level.c.increase the incentive to save.d.Not increase any of the above.ANS: B35. Suppose that more Chinese decide to vacation in the U.S. and that the Chinese purchase more U.S. Treasury bonds. Ignoring how payments are made for these purchases,a.the first action by itself raises U.S. net exports, the second action by itself raises U.S. net capital outflow.b.the first action by itself raises U.S. net exports, the second action by itself lowers U.S. net capital outflow.c.the first action by itself lowers U.S. net exports, the second action by itself raises U.S. net capital outflow.d.the first action by itself lowers U.S. net exports, the second action by itself lowers U.S. net capital outflow.ANS: B36The BLS reported in 2005 that there were 28.19 million people over age 25 who had no high school degree or its equivalent. In this group 11.73 million were employed and 1.04 million were unemployed. About what were the labor-force participation rate and the unemployment rate for this group?a.41.6% and 3.7%b.41.6% and 3.7%c.45.3% and 8.1%d.45.3% and 8.1%ANS: C37. Liquidity refers toa.the ease with which an asset is converted to the medium of exchange.b.a measurement of the intrinsic value of commodity money.c.the suitability of an asset to serve as a store of value.d.how many time a dollar circulates in a given year.ANS: A38. The Fed can influence unemployment ina.the short and long run.b.the short run, but not the long run.c.the long run, but not the short run.d.neither the short nor long run.ANS: B39. Which of the following equations is correct?a.S = I + Cb.S = I - NXc.S = I + NCOd.S = NX - NCO.ANS: C40 An understanding of the best ways to produce goods and services is calleda.human capital.b.physical ductivity.ANS: C41. Inward-oriented policiesa.are generally supported by economists.b.are primarily concerned with the development of human capital.c.in some ways are like prohibiting the use of certain technologies.d.All of the above are correct.ANS: C42Suppose that in a closed economy GDP is equal to 11,000, taxes are equal to 2,500， Consumption equals 7,500 and Government purchases equal 2,000. What are private saving, public saving, and national saving?a.1500, 1000, 500b.1000, 500, 1500c.500, 1500, 1000d.None of the above is correct.ANS: B43. Suppose that the Federal Reserve increases bank reserves and banks lend out some of these reserves, but at some point banks still have $5 million more they wish to lend out. If the required reserve ratio is 10%, how much more money can banks create if they lend out the remaining amount?a.$55 millionb.$50 millionc.$45 milliond.$40 millionANS: B44The classical theory of inflationa.is also known as the quantity