中级宏观经济题库.pdf

Spring 2009 ECON 3312 Quiz 1 1 The most volatile component of real GDP is a Investment b Government spending c Consumption d Wages and salaries e None of the above 2 Mercantilism a Preceded classicalism b Viewed money as wealth and a spur to real economic activity c Believed state action was necessary to ensure that markets operated efficiently d All of the above e None of the above 3 In the classical model firms maximize by setting the equal to the real wage a Output MU b Profits production function c Profits MPL d Utility MPL e None of the above 4 In the determination of labor supply a Workers maximize the real wage b Firms minimize the real wage c Firms maximize profits d Workers maximize utility e None of the above 5 Assume that the classical labor market can be represented by the following equations Aggregate Production Function Y 20 5N Labor Demand Nd 5 4 W P Labor Supply Ns 4 W P What is equilibrium W P N and Y a W P 0 20 N 4 20 and Y 41 00 b W P 1 00 N 1 00 and Y 25 00 c W P 0 50 N 3 00 and Y 35 00 d Cannot be determined from information given 6 The starting point for the classical theory of money is a Say s Law b The equation of exchange quantity theory c The loanable funds market d All of the above e None of the above 7 The specie flow mechanism implies that a Bullionism is a sound economic policy b Mercantilists were right about the use of trade policy c David Hume should have stuck to political philosophy d Gold flows internationally make Mercantilist trade policies self defeating e None of the above 8 In the classical model when AD increases due to an increase in money supply the effect on the equilibrium real wage is a The same as the effect on real output b The same as the effect on total employment c The real wage is not affected d All of the above e None of the above 9 In the Classical model real output is determined by and the price level by in the Classical model a aggregate demand aggregate demand b aggregate demand aggregate supply c aggregate supply aggregate supply d aggregate supply aggregate demand e None of the above 10 Which of the listed factors can cause the aggregate production function to shift a Bubonic plague b Hurricane in Florida c Discovery of gas in Arlington TX d Cold fusion technology perfected e All of the above Extra credit 5 points Show why fiscal policy is ineffective at changing total spending in the economy under the Classical paradigm The increase in government spending Q1 Q0 shifts the demand for loanable funds to the right raising interest rates The increase in interest rates causes private investment to fall Q1 Q2 and private saving to rise which is the same as private consumption falling Q2 Q0 The increase in government spending is just off set by the decline in private spending i i0 S D I Q D I G Q0 Q2 i1 Q1 ECON 3312 Quiz 2 1 If full employment GDP is 1000 and current GDP is 500 what policy will be best at achieving full employment when the MPC is 0 9 a an increase in taxes of 500 b a decrease in taxes of 500 c an increase in government spending of 50 d none of the above 2 If full employment GDP is 1000 and current GDP is 500 what policy will be best at achieving full employment when the MPC is 0 5 a an increase in taxes of 500 b a decrease in taxes of 500 c an increase in government spending of 100 d none of the above 3 If the Fed were to fly helicopters over the ten largest US cities and drop money what would be the result a an excess demand for bonds b an excess supply of money c price of bonds will rise d interest rate will fall e all of the above 4 If the Keynesian consumption function is 100 0 9Yd then the saving function is a 100 0 9Yd b 100 0 1Yd c 100 0 9Yd d 100 0 1Yd 5 An increase in lump sum taxes will a move along the IS curve to the right b shift the IS curve to the right c shift the IS curve to the left d move along the IS curve to the left 6 If AE C I G and C C0 Cy Y T where C0 500 and Cy 0 8 then an increase in G of 100 will shift the IS curve by a 100 b 500 c 1000 d Cannot be determined from the information given 7 If the MPC is 0 75 what is the simple tax multiplier a 3 b 4 c 3 d Cannot be determined from the information given 8 The slope of the aggregate expenditures curve is a equal to the MPS b the same as the slope of the consumption function c the same as the slope of the money demand curve d both a and b 9 The parameter Lr is the interest elasticity of money demand and it captures a the precautionary motive for holding money b the transactions motive for holding money c the speculative motive for holding money d none of the above 10 From the following information what is the value of YIS G 100 T 0 S 60 0 25Yd I 100 100r r 10 a 100 b 500 c 1000 d 5000 Extra Credit 5 points Given that YIS C0 CyT0 G0 I0 Irr 1 Cy and rLM M0 L0 LyY Lr What is the intercept and slope of the IS and LM curves ISslope ISintercept LMslope LMintercept ECON 3312 Quiz 3 1 From an initial equilibrium an increase in government expenditures will create a excess supply of money b excess demand for goods c excess supply of goods d excess demand for bonds e None of the above 2 From an initial equilibrium an increase in autonomous consumption expenditures will create a excess supply of money b excess demand for money c excess supply of goods d excess demand for bonds e None of the above 3 From an initial equilibrium an increase in money supply will create a excess supply of money b excess demand for goods c excess demand for bonds d All of the above e None of the above 4 The difference between the Classical money demand and the Keynesian money demand is a Classical is correct b Keynesian is correct c Classical has no speculative component d Keynesian has no transactions component e There is no difference between the two 5 Assume that the economy can be represented by the following equations Consumption C 100 0 9 Y T Investment I 100 10r Government G 100 Taxes T 100 Money Demand L 100 Y 50r Money Supply M 700 What is equilibrium r and Y a r 5 and Y 500 b r 6 and Y 1100 c r 7 and Y 1500 d None of the above 6 An increase in lump sum taxes will have what effect on equilibrium income and equilibrium interest rates a no effect b increase both c increase Y and decrease r d decrease both e increase r and decrease Y 7 Which magnitude is larger a the equilibrium multiplier b the simple multiplier c the MPC d the MPS e All are equal 8 If money demand has just increased which of the following events may have preceded it a Increase in taxes b Increase in demand for bonds c Decrease in autonomous investment d Increase in autonomous investment e None of the above 9 If both the money market and the goods market are in equilibrium then the bond market must also be in equilibrium because of a Say s Law b Quantity Theory c Pigou effect d Keynes effect e Walras Law 10 An increase in the supply of bonds could be caused by which of the following a Increase in money supply b Increase in government spending c Decrease in money demand d Decrease in money supply e All of the above Extra Credit 5 points Analyze the effects of a money supply contraction using the IS LM model r Y0 r0 LM M0 IS LM M1 Y1 r1 ECON 3312 Quiz 4 1 The upward sloping not vertical aggregate supply curve is the result of a money illusion b wage contracts c imperfect information in a rational expectations equilibrium d All of the above 2 An increase in the nominal money supply shifts the AD curve out due to a the Pigou effect b the real balance effect c the interest rate effect d All of the above 3 Short run money or fiscal neutrality is consistent with a the Monetarist paradigm b the Classical paradigm c the Keynesian paradigm d All of the above 4 In equilibrium i e at consumer worker optimum workers equate the real wage with a The MPL b The marginal disutility of leisure c The marginal disutility of labor d All of the above 5 If workers make no price level expectations errors the slope of the AS curve is a zero b one c minus one d infinite 6 The Phillip s Curve demonstrates the trade off between a inflation and real wages b real wages and unemployment c inflation and unemployment d None of the above 7 The vertical Phillip s Curve suggested by Milton Friedman is the result of a insufficient aggregate demand b the natural rate of unemployment c the full employment assumption d There is no such thing as a vertical Phillip s Curve 8 In the long run after all expectations adjustments have been made the effect of Keynesian demand side policy on aggregate output a is not as large as the effect on total employment of labor b depends on the marginal propensity to consume c is different for monetary policy than for fiscal policy d None of the above 9 Macroeconomic policy evaluation has been complicated by a the Heisenberg uncertainty principle b the Lucas critique c The Pigou effect d The natural rate hypothesis e None of the above 10 If your expectations are formed rationally then a your expectations are always correct b your expectations are self fulfilling c your expectations are delusional d your expectations can be improved with better information e None of the above Extra credit 5 points Using the expectations augmented Phillips curve show what is meant by the accelerationist hypothesis ECON 3312 Quiz 5 1 If Robinson Crusoe makes a fishing spear that allows him to increase his productivity what will happen to his consumption a Increase b Decrease c Stay the same d It depends on the substitution and income effects 2 Friedman s restatement of the quantity theory of money implies that a change in the supply of money a will alter its rate of return b will lead to a portfolio adjustment by economic agents c will alter the relative rate of return on other assets d All of the above 3 Long run run money or fiscal non neutrality is consistent with a the Monetarist paradigm b the Classical paradigm c the Keynesian paradigm d the Neo Classical rational expectations paradigm e All of the above 4 The long run adjustment process due to a nominal shock a takes longer under the Classical paradigm than the Keynesian b is shorter under the Neo Classical due to rational expectations c is shorter under the Monetarist paradigm due to adaptive expectations d All of the above 5 The downfall of the Keynesian model can be attributed to a the Lucas critique b the oil price shocks of the 1970s c its inability to explain stagflation d All of the above 6 According to Friedman the long run Phillips curve a is horizontal b reflects the accelerationist hypothesis c is vertical d both b and c e None of the above 7 The assumption of perfect information reduces the Neo Classical model to a the Keynesian model b the Classical model c the Monetarist model d all of the above 8 The schools of thought which believe that the macroeconomy is naturally stable are a Keynesians b Monetarists c Calvinists d all of the above 9 Regardless of the particular paradigm an increase in government expenditures will ceteris paribus result in a higher price level b lower interest rate c lower nominal wage d lower real output 10 If Robinson Crusoe makes a fishing spear that allows him to increase his productivity what will happen to his work effort a Increase b Decrease c Stay the same d It depends on the substitution and income effects Extra Credit If Robinson Crusoe suffers an illness that prevents him from working for a short time what are the effects on his intertemporal decisions regarding consumption and work effort Since the decline in productivity is temporary it will have negligible effects on lifetime wealth X Robinson will thus want to smooth his consumption by borrowing today That will raise the interest rate Friday charges causing Robinson s intertemporal budget constraint to become steeper see graph This implies a change in the relative price of current consumption versus future consumption Specifically the higher interest rate means current consumption has become more expensive Robinson must give up higher future consumption to consume today since the rate of interest on saving is now higher The substitution effect says that he will substitute away for the higher priced good current consumption to wards the cheaper good future consumption The increase in the interest rate will not generate any aggregate wealth effects since Friday s wealth is increased by exactly the amount of Robinson s decrease so that wealth effects are washed out in the aggregate Friday does respond to the higher interest rate via the intertemporal substitution effect just as Robinson does Finally since Robinson is temporarily less productive today the cost of leisure today has fallen relative to the cost of leisure tomorrow So the intertemporal substitution effect implies Robinson will work less today and more in the future Ct Ct 1 X X 1 r0 U0 X 1 r1 t t 1 ECON 3312 Intermediate Macro Quiz 6 Name MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the question 1 An increase in government spending other things equal aggregate 1 A decreases supply B increases demand C decreases demand D increases supply 2 Everything else held constant a balanced budget increase in government spending that is an increase in government spending that is matched by an identical increase in net taxes will 2 A decrease aggregate demand B increase aggregate demand but not by as much if just government spending increases C increase aggregate demand by more than if just government spending increases D will not affect aggregate demand 3 Everything else held constant aggregate demand increases when 3 A taxes are cut B animal spirits decrease C government spending is reduced D the money supply is reduced 4 The long run aggregate supply curve is a vertical line passing through 4 A the expected rate of inflation B the natural rate price level C the actual rate of unemployment D the natural rate of output 5 If workers demand and receive higher real wages a successful wage push the cost of production and the short run aggregate supply curve shifts 5 A falls leftward B rises leftward C rises rightward D falls rightward 6 Everything else held constant an increase in the cost of production aggregate 6 A decreases supply B increases supply C increases demand D decreases demand 7 Which of the following increases aggregate supply in the shor