Choice Behavior - Principles of Macroeconomics - Exam, Exams of Macroeconomics

Download Choice Behavior - Principles of Macroeconomics - Exam and more Exams Macroeconomics in PDF only on Docsity! Ollscoil na hÉireann, Gaillimh GX_____ National University of Ireland, Galway Resit Examinations 2009/2010 
 
 Exam
Code(s)
 1BA1,
1BA11,
1BA6,
1BA7,
1BCS1,
1BCW1,
1BFS1,
 1BGL1,1BHR1,
1BIS1,
1BTP1,
1BWM1,
1BWM1,
1EM1,
1OA1
 Exam(s)
 1st
B.A.,
1st
B.A.
(Hist.),
1st
B.A.
(PSP),
1st
B.A.
(Psych.),
1st
B.A.
 (Child
St.),
1st
B.A.
(Creat.
Writ.),
1st
B.A.
(Film
St.),
B.A.
 (Gaeilge
&
Leann
an
Aist.),
1st
B.A.
(Human
Rights),

1st
B.A.
 (Irish
St.),
1st
B.A.
(Theatre
&
Perform.),
1st
B.A.
(Women
St.),
 Erasmus,
Occasional
 
 Module
Code(s)
 EC136
 Module(s)
 Principles
of
Macroeconomics
 
 Paper
No.
 1
 Repeat
Paper
 
 
 External
Examiner(s)
 Professor
Robert
Wright
 Internal
Examiner(s)
 Professor
John
McHale
 Professor
Terrence
McDonough
 
 Instructions: 
 Answer
all
questions
(no
negative
marking).
Please
use
the
 MCQ
answer
sheet
provided,
using
lines
1
–
40.
 
 
 Duration 2
hours
 No.
of
Pages
 8
pages
in
total
 Department(s)
 Economics
 Course
Co­ordinator(s)
 T.
McDonough
 
 Requirements:
 MCQ
 Yes
 Handout
 
 Statistical
Tables
 
 Graph
Paper
 
 Log
Graph
Paper
 
 
 
 
 
 
 1. Individuals are the important actors in which school of economics? a. Neoclassical b. Marxian c. Institutional d. Post Keynesian 2. Choice is a behavior associated with a. individuals. b. classes. c. institutions. d. economists. 3. In the lecture McDonough argued the relationship between theory and facts is a. dialectical. b. overdetermined. c. tenuous. d. none of the above. 4. A set of rules about how the world works plus a set of rules of investigation is a a. institutionalism b. conservative position c. paradigm d. textbook example 5. Price is to neoclassical theory what ______ is to Marxian theory. a. class b. profit c. exploitation d. wage labour 6. A class society is most precisely one in which a. inequalities exist. b. one group earns more money than another. c. discrimination is practiced. d. one group lives off the labour of another group. 19. In the Keynesian model consumption depends primarily on a. custom. b. income. c. utility. d. individual preferences. C = 20 + 7/8 GDP I = 80 G = 100 X = 30 M = 1/8 GDP 20. What is the equilibrium level of income in this model? a. 920 b. 1840 c. 230 d. 460 21. Suppose autonomous consumption rises by 10. The new equilibrium will be a. 960 b. 40 c. 950 c. 1920 22. Calculate the multiplier for this model. a. 4 b. 8 c. 7 d. 10 23. Using the original equilibrium, suppose the full employment level of income is 1040. The government should increase government spending to a. 110 b. 130 c. 140 d. 180 24. The government can lower the interest rate by a. decreasing the supply of money. b. increasing the supply of money. c. increasing the demand for money. d. none of the above. 25. In the Marxian theory of unemployment, expansion results in a. rising wages and falling profits. b. rising wages and rising profits. c. falling wages and rising profits. d. falling wages and falling profits. 26. Inflation creates a. uncertainty. b. menu costs. c. problems for business planning. d. all of the above. 27. Notes plus coins plus current accounts equal a. M1. b. M2. c. M3. d. M4 28. Which of the following does not help explain why the aggregate demand curve slopes down? a. Wealth effect b. Expectations effect c. Interest rate effect d. International trade effect 29. The quantity theory of money says a. increases in the money supply result in increases in price. b. increases in price result in increases in the money supply. c. increases in the money supply are balanced by decreases in velocity. d. increases in the money supply result in increases in quantity of output. 30. Repeating a pattern of recession, trough, recovery, peak creates a. Keynesian demand problems. b. unemployment. c. inflation. d. a business cycle. 31. In real business cycle theory, expansions can be created through a. expansions of exports. b. recovery from negative shocks. c. positive shocks. d. both b and c. 32. Which of the following is not a source of negative shocks? a. increase in the price of raw materials b. bad weather c. introduction of major new products and industries d. introduction of new technology 33. Which of the following is not a problem with real business cycle theory? a. The shocks are often unidentified. b. Technology shocks are specific to particular industries. c. It predicts that prices will fall in recessions. d. Weather has been demonstrated to have no effect on the economy. 34. Additional GDP demands additional investment is a statement of the a. multiplier principle. b. accelerator principle. c. inflationary gap. d. money illusion. 35. Which of the following is not a characteristic of the financial environment according to financial business cycle theory? a. uncertainty b. speculation c. debt finance d. rational markets