曼昆宏观经济学：期中考试示例

Eco f304L Introduction To Macroeconomics Summer 2008 Midterm Exam 1Multiple Choice 2 points each 1 In 1890 U S workers worked about 60 hours per week on average In 2003 the average was about 40 hours per week In the mean time the real wage rate has had a 5 fold increase Based on the facts we can argue that A Income eff ect of wage increase exceeds substitution eff ect B Substitution eff ect of wage increase exceeds income eff ect C There is no income eff ect of wage increase D There is no substitution eff ect of wage increase 2 Let the production function be F A K N AK0 3N0 7 which of the following is NOT true A A is the total factor productivity B Given A and K we observe a diminishing marginal productivity of labor C Given A and N we observe a diminishing marginal productivity of capital D K includes both physical capital and human capital 3 In making employment decisions profi ts are maximized A wherever the marginal product of labor is an increasing function of employment B at the level of employment where the marginal product of labor equals the nominal wage rate C at the level of employment where the marginal product of labor equals the real wage rate D at the level of employment where the marginal product of labor equals the average product of labor E none of the above 4 Which of the following is NOT true about Malthusian model A Between the years 500 AD and 1500 AD economic growth in Europe took place at the rate of zero percent per year B When output is above subsistence level the fertility rate will increase C When output is below subsistence level the mortality rate will decrease D When output is below subsistence level the mortality rate will increase E It is not a good model to describe today s advanced economies 5 According to the Malthusian growth model improvements in technology A allow an improvement in living standards in the short run B allow an improvement in living standards in the long run C cause fertility rates to increase D only A and C E only B and C 6 Which of the following is a source of growth in potential GDP A Growth in the labor force B Growth in the capital stock C Growth in labor productivity D Growth in TFP E All of the above 7 An increase in technology in Solow s neoclassical growth model A increases the steady state capital per worker B increases the output per worker over the long run C decrease the output per worker in the short run D both A and B E both A and C 8 In a diagram of the economy s production function that plots capital input on the horizontal axis and output on the vertical axis an increase in the labor input is represented by A a movement along the production function to higher levels of capital input and output B an upward shift in the production function refl ecting the corresponding increase in capital productivity due to the increase in labor C a downward shift in the production function due to the decline in capital s share in producing output D a movement along the production function to lower levels of capital input E none of the above 9 When the economy operates at potential GDP A unemployment is equal to the natural rate B the equilibrium real wage and employment level have been reached in the labor market C the labor market is overheated D all of the above E a and b 10 The law of motion of capital stock can be represented by Kt 1 1 Kt It 1 Suppose the current capital stock is 100 billion the depreciation rate 0 02 What is the investment that maintains the capital stock at the current level A 1 billion B 2 billion C 10 billion D 20 billion 11 According to the rule of 70 a country growing at 5 percent per year doubles its GDP per capita approximately every A 7 years B 10 years C 14 years D 20 years E 30 years 12 From 2006 to 2007 suppose labor input had not changed but total factor productivity has in creased from 1 to 1 1 and capital stock has DECREASED 5 what is the growth rate of output according to Solow s formula A 10 percent B 10 percent C 5 percent D 5 percent 13 Which of the following is a NOT policy to stimulate labor supply A a tax reform that reduces the progressivity of income tax B a cut of income tax C a cut of bequest tax D a cut of labor earning tax 14 Which of the following is NOT true about sticky price A In response to a decline in demand the price does not adjust at all B In response to a decline in demand the adjustment of price occurs gradually C Sticky price is one of the key assumptions in Keynsian model of short run fl uctuation D A labor contract that fi x the wage rate for 1 year is an example of sticky price 15 An assumption central to the short run analysis of the goods and services produced by an econ omy is that A a fi rm s operating objective is to maximize profi ts B consumers operate according to the principle of self interest C aggregate demand determines the amount of good produced D governments fulfi ll their role of guaranteeing property rights E monetary policy assures an environment of stable prices 16 The marginal propensity to import is A the rate at which import increases as GDP increases B the rate at which import increases as disposable income increases C equal to 1 divided by the slope of the net export function D the rate at which imports climbs as consumption increases E none of the above 17 The net export function function is given by X g mY Which of the following is NOT true A As the output of the U S increase net export will decrease B As the output of the U S increase net export will increase C As the output of the U S increase import will increase D As the output of the U S increase export is not aff ected generally E Given the net export function U S export is determined by the output of U S trading partners 18 If the marginal propensity to consume were to increase with no change in the tax rate then the consumption function drawn on a graph with disposable income on the horizontal axis would A rotate to a steeper line around the same intercept B rotate to a steeper line and start at a higher intercept C rotate to a steeper line but start from a lower intercept D rotate to a fl atter line around the same intercept E shift to a parallel line starting from a higher intercept 19 Consider a closed economy in which consumption is described by C 100 0 5 1 t Y Let the tax rate t 0 2 and I 600 and assume an active government so that G 500 If the government balances its budget in equilibrium by increasing the tax rate and decreasing its spending then A GDP climbs above 2 000 B GDP remains at 2 000 C GDP falls below 2 000 D GDP rises or falls depending on which policy is stronger E consumption expenditure either rises or falls depending on whether or not the tax increase dominates the eff ect of climbing GDP 20 Let consumption of an closed economy given by C a b 1 t Y T Further assume invest ment and government spending are exogenous The multiplier for T would then be A 1 1 1 t b B b 1 1 t b C b 1 b D b 1 1 t b E b 1 b 2Numerical 30 points 1 10 points Suppose the production function is Y AK0 3N0 7 where Y is the total output K is the total capital stock and N is the number of worker in the economy a 3 points Write the output per worker Y N as a function of capital per worker K N b 3 points If capital per worker is 2 250 000 and technology A 10 what is the output per worker c 4 points If technology grows from 10 to 11 what is the growth rate of output per worker holding capital and labor input constant Problem 2 and 3 are based on the open economy model given by the following equations Y C I G X I 140 G 60 C 200 0 7 1 t Y T X 50 0 1Y 2 10 points For this problem t 0 i e the consumption function is given byC 200 0 7 Y T a 2 points graph net export X as a function of output Y b 4 points let T 100 at the point of spending balance calculate Y C and X Is there a trading defi cit c 1 point when T 100 does the government have a budget defi cit d 3 points if the government wants to eliminate trade defi cit surplus i e wants X 0 should the lump sum tax T be increased