Macro Final

1. 1If nominal GDP double and the GDP deflator doubles, then real GDP

   1. Aremains constant
   2. Bdoubles
   3. Ctriples
   4. Dquadruples
2. 2A country reported nominal GDP of $115 billion in 2010 and $125 billion in 2009. It also reported a GDP deflator of 85 in 2010 and 100 in 2009. Between 2009 and 2010,

   1. Areal output and the price level both rose.
   2. Breal output rose and the price level fell.
   3. Creal output fell and the price level rose.
   4. Dreal output and the price level both fell.
3. 3Which of the following would not be included in the measurement of GDP for the USA?

   1. ANew Honda Accords produced in the United States
   2. BUsed Ford Broncos sold in the United States
   3. CHealth care and legal services
   4. DComputers and software products
4. 4Labor and capital alone cannot produce sustained growth because of

   1. Adiminishing returns to labor and increasing returns to capital
   2. Bincreasing returns to labor and diminishing returns to capital
   3. Cdiminishing returns to labor and capital
   4. Dincreasing returns to labor and productivity
5. 5Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries?

   1. AIncrease taxes on income from saving
   2. Bimpose restrictions on foreign ownership of domestic capital
   3. Cprotect property rights and enforce contracts
   4. Dencourage to increase the fertility
6. 6Which of the following is not a way of increasing research and development?

   1. Aa tax credit for research
   2. Beliminating patents, copyrights, and trademarks
   3. Cincreasing funding
   4. Dimproving intellectual property laws
7. 7If there is inflation,

   1. Anominal GDP grows faster than real GDP
   2. Bnominal GDP grows faster than the GDP deflator
   3. Creal GDP grows faster than nominal GDP
   4. Dreal GDP grows faster than the GDP deflator
8. 8Which of the following is true?

   1. Athe decline in consumption resulting from an increase in government purchases is called crowding out
   2. Bthe natural rate of unemployment is the rate of unemployment when the economy is in either a recession or boom
   3. Ca higher interest rate causes the exchange rate to fall, which results in the share of net exports rising
   4. Dthe CPI is based on a fixed quantity of goods and services in the base-year
9. 9The price index was 320 in one year and 360 in the next year. What was the inflation rate?

   1. A9%
   2. B11.1%
   3. C12.5%
   4. D40%
10. 10Suppose that a country increased its saving rate. In the long run it would have

    1. Ahigher productivity, and another unit of capital would increase output by more than before
    2. Bhigher productivity, but another unit of capital would increase output by less than before
    3. Clower productivity, and another unit of capital would increase output by more than before
    4. Dlower productivity, but another unit of capital would increase output by less than before

11. 111. Which of the following is a requirement for the Bureau of Labor Statistics to place someone in the “unemployed” category?

    1. AThe person must have worked no more than 10 hours during the past week.
    2. BThe person must have tried to find employment during the previous four weeks
    3. CThe person may not have been laid off.
    4. DAll of the above are correct.
12. 12Who is included in the labor force by the Bureau of Labor Statistics?

    1. ADia, an unpaid homemaker not looking for other work
    2. BKevin, a full-time student not looking for work
    3. CSarah, who does not have a job but is looking for work
    4. DNone of the above is correct.
13. 13Suppose there are a large number of men who used to work or seek work who now no longer do either. Other things the same, this makes

    1. Athe number of people unemployed rise but does not change the labor force.
    2. Bthe number of people unemployed rise but makes the labor force fall.
    3. Cboth the number of people unemployed and the labor force fall.
    4. Dthe number of people unemployed fall but does not change the labor force.
14. 14The Bureau of Labor Statistics reported in 2005 that there were 28.19 million people over age 25 who had no high school degree or its equivalent, 11.73 million of whom were employed and 1.04 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

    1. A45.3% and 3.7%
    2. B45.3% and 8.1%
    3. C41.6% an 3.7%
    4. D41.6% and 8.1%
15. 15Suppose that some country had an adult civilian population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were employed?

    1. A2.76 million
    2. B31.74 million
    3. C34.5 million
    4. D42.32 million
16. 16Economists would predict that, other things the same, the more generous unemployment compensation a country has, the

    1. Ashorter the duration of each spell of unemployment and the higher the unemployment rate.
    2. Bshorter the duration of each spell of unemployment and the lower the unemployment rate.
    3. Clonger the duration of each spell of unemployment and the higher the unemployment rate.
    4. Dlonger the duration of each spell of unemployment and the lower the unemployment rate.
17. 17Suppose that efficiency wages become more common in the economy. Imposing efficiency wages

    1. Aincreases the quantity demanded and decreases the quantity supplied of labor.
    2. Bdecreases the quantity demanded and increases the quantity supplied of labor.
    3. Cincreases the quantity demanded and increases the quantity supplied of labor.
    4. Ddecreases the quantity demanded and decreases the quantity supplied of labor.
18. 18Sectoral changes in demand

    1. Acreate frictional unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates structural unemployment.
    2. Bcreate structural unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates frictional unemployment.
    3. Cand firms paying wages above equilibrium to attract a better pool of candidates both create structural unemployment.
    4. Dand firms paying wages above equilibrium to attract a better pool of candidates both create frictional unemployment.
19. 19At the Federal Reserve,

    1. Athe nation’s monetary and fiscal policies are made by the Federal Open Market Committee, which meets about every six weeks.
    2. Bthe nation’s monetary and fiscal policies are made by the Federal Open Market Committee, which meets twice a year.
    3. Cthe nation’s monetary policy is made by the Federal Open Market Committee, which meets about every six weeks.
    4. Dthe nation’s monetary policy is made by the Federal Open Market Committee, which meets twice a year.
20. 20A bank has $8,000 in deposits and $6,000 in loans. It has loaned out all it can given the reserve requirement. It follows that the reserve requirement is

    1. A2.5%
    2. B33.3%
    3. C25%
    4. D75%
21. 21If the money multiplier is 3 and the Fed wants to increase the money supply by $900,000, it could

    1. Abuy $300,000 worth of bonds.
    2. Bbuy $225,000 worth of bonds.
    3. Csell $300,000 worth of bonds.
    4. Dsell $225,000 worth of bonds.
22. 22When the Fed decreases the discount rate, banks will

    1. Aborrow more from the Fed and lend more to the public. The money supply increases.
    2. Bborrow more from the Fed and lend less to the public. The money supply decreases.
    3. Cborrow less from the Fed and lend more to the public. The money supply increases.
    4. Dborrow less from the Fed and lend less to the public. The money supply decreases.
23. 23First National Bank (FNB) has a reserve ratio of 20 percent, a required reserve ratio of 10 percent, and deposits of $1,000. If FNB receives an additional deposit of $100,

    1. Athen it has required reserves of $210 and holds excess reserves of $10.
    2. Bthen it has required reserves of $10 and holds excess reserves of $20.
    3. Cthen it has required reserves of $110 and holds excess reserves of $190.
    4. Dthen it has required reserves of $110 and holds excess reserves of $0.
24. 24When the Consumer Price Index falls from 110 to 100

    1. Athere is inflation of 9.1% and the value of money decreases.
    2. Bthere is deflation of 9.1% and the value of money increases.
    3. Cthere is deflation of 10% and the value of money increases.
    4. Dthere is inflation of 10% and the value of money decreases.
25. 25When the Fed purchases $1000 worth of government bonds from the public, the U.S. money supply eventually increases by

    1. Amore than $1000
    2. Bexactly $1000
    3. Cless than $1000
    4. DNone of the above are correct
26. 26Your nominal wage increases from $12 per hour to $13 per hour. At the same time, the price level increases from 140 to 147. As a result,

    1. AThe number of dollars you receive increases and the purchasing power of the dollars you receive increases.
    2. BThe number of dollars you receive increases and the purchasing power of the dollars you receive decreases.
    3. CThe number of dollars you receive decreases and the purchasing power of the dollars you receive increases.
    4. DThe number of dollars you receive decreases and the purchasing power of the dollars you receive decreases.
27. 27If the Federal Reserve increases the interest rate on bank deposits at the Fed (which are also known as reserves), banks will want to hold

    1. Afewer reserves, so the money multiplier will fall.
    2. Bfewer reserves, so the money multiplier will rise.
    3. Cmore reserves, so the money multiplier will fall.
    4. Dmore reserves, so the money multiplier will rise.
28. 28Which of the following combinations of real interest rates and inflation implies a nominal interest rate of 6 percent?

    1. Aa real interest rate of 3 percent and an inflation rate of 2 percent.
    2. Ba real interest rate of 7 percent and an inflation rate of 1 percent.
    3. Ca real interest rate of 5 percent and an inflation rate of 1 percent.
    4. Da real interest rate of 6 percent and an inflation rate of 1 percent.
29. 29In the 1970s, in response to recessions caused by an increase in the price of oil, the central banks in many countries increased their money supplies. The central banks might have done this by

    1. Aselling bonds on the open market, which would have not raised the value of money.
    2. Bpurchasing bonds on the open market, which would have raised the value of money.
    3. Cselling bonds on the open market, which would have raised the value of money.
    4. Dpurchasing bonds on the open market, which would have lowered the value of money.
30. 30Kelly puts money in a savings account. One year later she has two percent more dollars and can buy three percent more goods. Kelly earned a real interest rate of

    1. Atwo percent and prices fell one percent.
    2. Btwo percent and prices rose one percent.
    3. Cthree percent and prices rose one percent.
    4. Dthree percent and prices fell one percent.
31. 31In which case is velocity the highest?

    1. Athe price level equals 4, the money supply equals 5,000, and output equals 20,000.
    2. Bthe price level equals 4, the money supply equals 20,000 and output equals 5,000.
    3. Cthe price level equals 2, the money supply equals 5,000, and output equals 20,000.
    4. Dthe price level equals 2, the money supply equals 20,000 and output equals 5,000.
32. 32If a country experienced deflation, then

    1. Athe nominal interest rate would be greater than the real interest rate.
    2. Bthe real interest rate would be greater than the nominal interest rate
    3. Cthe real interest rate would equal the nominal interest rate.
    4. Dnominal GDP would be greater than the money supply.
33. 33According to the quantity equation, the price level would change less than proportionately with a rise in the money supply if there were also

    1. Aeither a rise in output or a rise in the rate at which money changes hands.
    2. Beither a rise in output or a fall in the rate at which money changes hands
    3. Ceither a fall in output or a rise in the rate at which money changes hands.
    4. Deither a fall in output or a fall in the rate at which money changes hands.
34. 34Suppose that in some tax year you earned a nominal interest rate of 6 percent. During the time you held these funds inflation was 1 percent. You compute that you made a real after-tax interest rate of 3 percent. What was your tax rate?

    1. A40%
    2. B33.3%
    3. C25%
    4. D50%
35. 35If inflation is higher than what was expected,

    1. Acreditors receive a lower real interest rate than they had anticipated.
    2. Bcreditors pay a lower real interest rate than they had anticipated.
    3. Cdebtors receive a higher real interest rate than they had anticipated.
    4. Ddebtors pay a higher real interest rate than they had anticipated.
36. 36If domestic residents of France purchase 1.2 trillion euros of foreign assets and foreigners purchase 1.5 trillion euros of French assets, then France’s net capital outflow is

    1. A-.3 trillion euros, so it must have a trade deficit.
    2. B-.3 trillion euros, so it must have a trade surplus.
    3. C.3 trillion euros, so it must have a trade deficit.
    4. D.3 trillion euros, so it must have a trade surplus.
37. 37A Japanese bank buys U.S. government bonds, this purchase

    1. Aincreases U.S. net capital outflow and has no affect on Japanese net capital outflow.
    2. Bincreases U.S. net capital outflow and increases Japanese net capital outflow.
    3. Cincreases U.S. net capital outflow, but decreases Japanese net capital outflow.
    4. Ddecreases U.S. net capital outflow, but increases Japanese net capital outflow.
38. 38If saving is greater than domestic investment, then

    1. Athere is a trade deficit and Y > C + I + G.
    2. Bthere is a trade deficit and Y < C + I + G.
    3. Cthere is a trade surplus and Y > C + I + G.
    4. Dthere is a trade surplus and Y < C + I + G.
39. 39A country has a trade deficit. Its

    1. Anet capital outflow must be positive, and saving is larger than investment.
    2. Bnet capital outflow must be positive and saving is smaller than investment.
    3. Cnet capital outflow must be negative and saving is larger than investment.
    4. Dnet capital outflow must be negative and saving is smaller than investment.
40. 40Exchange rates are 100 yen per dollar, 0.8 euro per dollar, and 12 pesos per dollar. A bottle of beer in New York costs 6 dollars, 500 yen in Tokyo, 6 euro in Munich, and 84 pesos in Cancun. Where is the most expensive and the cheapest beer, in that order?

    1. ACancun, New York
    2. BMunich, Tokyo
    3. CTokyo, Munich
    4. DNew York, Cancun
41. 41If the unit of foreign currency is the peso, in which case is the real exchange rate 1.2?

    1. Athe U.S. price is $2, the foreign price is 5 pesos, and the exchange rate is 3 pesos per dollar.
    2. Bthe U.S. price is $3, the foreign price is 18 pesos, and the exchange rate is 5 pesos per dollar.
    3. Cthe U.S. price is $5, the foreign price 12 pesos, and the exchange rate is 2 pesos per dollar.
    4. Dthe U.S. price is $10, the foreign price is 3 pesos, and the exchange rate is 4 pesos per dollar.
42. 42If the real exchange rate between the U.S. and Japan is 1, the nominal exchange rate is 100 yen per U.S. dollar and the price of chicken in the U.S. is $2.50 per pound, what is the price of chicken in Japan?

    1. A400 yen per pound
    2. B250 yen per pound
    3. C100 yen per pound
    4. D40 yen per pound
43. 43If purchasing-power parity holds but then U.S. prices rise, which of the following move the exchange rate back towards purchasing-power parity?

    1. Aforeign prices rise or the U.S. nominal exchange rate rises
    2. Bforeign prices rise or the U.S. nominal exchange rate falls
    3. Cforeign prices fall or the U.S. nominal exchange rate rises
    4. Dforeign prices fall or the U.S. nominal exchange rate falls
44. 44If the central bank wants to expand Aggregate Demand (AD), it can _________ the money supply, which would __________ the interest rate

    1. Aincrease, increase
    2. Bincrease, decrease
    3. Cdecrease, increase
    4. Ddecrease, decrease
45. 45If the government wants to contract AD, it can ___________ government purchases (G) or ____________ taxes.

    1. Aincrease, increase
    2. Bincrease, decrease
    3. Cdecrease, increase
    4. Ddecrease, decrease
46. 46Which of the following is an example of an automatic stabilizer? When the economy goes into recession,

    1. Amore people become eligible for unemployment insurance benefits
    2. Bstock prices decline, particularly for firms in cyclical industries
    3. CCongress begins hearings about a possible stimulus package
    4. Dthe Federal Reserve changes its target for the federal funds rate
47. 47An increase in the AD for goods and services has a large impact on output _________ and a larger impact on the price level ____________

    1. Ain the short run, in the long run
    2. Bin the long run, in the short run
    3. Cin the short run, also in the short run
    4. Din the long run, also in the long run
48. 48Which of the following is true?

    1. Athe decline in consumption resulting from an increase in government purchases is called crowding out
    2. Bthe natural rate of unemployment is the rate of unemployment when the economy is in either a recession or a boom
    3. Ca higher interest rate causes the exchange rate to fall, which results in the share of net exports rising
    4. DThe CPI is based on a fixed quantity of goods and services in the base-year
49. 49Suppose there are both multiplier and crowding out effects. An increase in government expenditures would definitely

    1. Ashift aggregate demand right by a larger amount than the increase in government expenditures
    2. Bshift aggregate demand right by the same amount as an the increase in government expenditures
    3. Cshift aggregate demand right by a smaller amount than the increase in government expenditures
    4. DAny of the above outcomes are possible
50. 50If businesses and consumers become pessimistic, the Federal Reserve can attempt to reduce the impact on the price level and real GDP by

    1. Aincreasing the money supply, which raises interest rates
    2. Bincreasing the money supply, which lowers interest rates
    3. Cdecreasing the money supply, which raises interest rates
    4. Ddecreasing the money supply, which lowers interest rates
51. 51Stagflation is caused by

    1. Aa leftward shift in the AD curve
    2. Ba rightward shift in the AD curve
    3. Ca leftward shift in the short-run AS curve
    4. Da rightward shift in the short-run AS curve
52. 52If policymakers expand aggregate demand, then in the long run

    1. Aprices will be higher and unemployment will be lower
    2. Bprices will be higher and unemployment will be unchanged
    3. Cprices and unemployment will be unchanged
    4. DNone of the above is correct
53. 53In the long run, if the Fed decreases the rate at which it increases the money supply

    1. Ainflation will be lower
    2. Bunemployment will be higher
    3. Creal GDP will be lower
    4. DAll of the above are correct
54. 54Which of the following events would shift money demand to the right?

    1. Aan increase in the interest rate or an increase in the price level
    2. Ban increase in the interest, but not an increase in the price level
    3. Can increase in the price level, but not an increase in the interest rate
    4. Dneither an increase in the interest rate nor an increase in the price level
55. 55Which of the following properly describes the interest-rate effect that helps explain the slope of the aggregate-demand curve?

    1. AAs the money supply increase, the interest rate falls, so spending rises
    2. BAs the money supply increases, the interest rate rises, so spending rises
    3. CAs the price level increases, the interest rate falls, so spending rises
    4. DAs the price level increases, the interest rate rises, so spending falls
56. 56Suppose the Fed decreases the growth rate of the money supply. Which of the following would be lower in the long run?

    1. Aboth the natural rate of unemployment and the inflation rate
    2. Bthe natural rate of unemployment, but not the inflation rate
    3. Cthe inflation rate, but not the natural rate of unemployment
    4. Dneither the natural unemployment rate nor the inflation rate
57. 57If the government reduced the minimum wage and pursued contractionary monetary policy, then in the long run

    1. Aboth the unemployment rate and the inflation rate would be lower
    2. Bthe unemployment rate would be lower and the inflation rate would be higher
    3. Cthe unemployment rate would be higher and the inflation rate would be lower
    4. Dthe unemployment rate and the inflation rate would be higher
58. 58Which of the following policies would be advocated by someone who wants the government to follow an active stabilization policy when the economy is experiencing severe unemployment?

    1. Adecrease the money supply
    2. Bincrease government expenditures
    3. Cincrease taxes
    4. DAll of the above are correct
59. 59If countries that imported goods and services from the United States went into recession, we would expect that U.S, net exports would

    1. Arise, making aggregate demand shift right
    2. Brise, making aggregate demand shift left
    3. Cfall, making aggregate demand shift right
    4. Dfall, making aggregate demand shift left
60. 60in equilibrium a country has a net capital outflow of $200 billion and domestic investment of $150 billion. What is the quantity of loanable funds demanded?

    1. A$50 billion
    2. B$150 billion
    3. C$200 billion
    4. D$350 billion
61. 61If U.S. net exports are negative, then net capital outflow is

    1. Apositive, so foreign assets bought by Americans are greater than American assets bought by foreigners
    2. Bpositive, so American assets bought by foreigners are greater than foreign assets bought by Americans
    3. Cnegative, so foreign assets bought by Americans are greater than American assets bought by foreigners
    4. Dnegative, so American assets bought by foreigners are greater than foreign assets bought by Americans
62. 62Which of the following is not an automatic stabilizer?

    1. Athe minimum wage
    2. Bthe unemployment compensation system
    3. Cthe federal income tax
    4. Dthe welfare system
63. 63the imposition of an import quota shifts

    1. Athe supply of currency right, so the exchange rate falls
    2. Bthe supply of currency left, so the exchange rate rises
    3. Cthe demand for currency right, so the exchange rate rises
    4. Dthe demand for currency left, so the exchange rate falls
64. 64In the long run, which of the following depends primarily on the growth rate of the money supply?

    1. Athe natural rate of unemployment and the inflation rate
    2. Bthe natural rate of unemployment but not the inflation rate
    3. Cthe inflation rate but not the natural rate of unemployment
    4. Dneither the natural rate of unemployment nor the inflation rate
65. 65According to the Phillips curve, policymakers would reduce inflation but raise unemployment if they

    1. Adecreased the money supply
    2. Bincreased government expenditures
    3. Cdecreased taxes
    4. DNone of the above is correct
66. 66If policymakers decrease aggregate demand, then in the long run

    1. Aprices will be higher and unemployment will be lower
    2. Bprices will be higher and unemployment will be unchanged
    3. Cprices and unemployment will be unchanged
    4. DNone of the above is correct
67. 67In the long run, if the Fed decreases the rate at which it increases the money supply

    1. Ainflation will be lower
    2. Bunemployment will be higher
    3. Creal GDP will be lower
    4. DAll of the above are correct
68. 68If the Federal Reserve increases the rate at which it increases the money supply, then unemployment is lower

    1. Ain the long run and the short run
    2. Bin the long run but not the short run
    3. Cin the short run but not the long run
    4. Din neither the short run nor the long run
69. 69The natural rate of unemployment

    1. Ais constant over time
    2. Bvaries over time, but can't be changed by the government
    3. Cis the unemployment rate that the economy tends to move to in the long run
    4. Ddepends on the rate at which the Fed increases the money

Descripción

Business/Economics Test sobre Macro Final, creado por Stephanie Souza el 19/12/2016.

Autor

Stephanie Souza

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Creado el 19 dic 2016 · actualizado el 22 dic 2016

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