2013秋季学期宏观复习题

2013秋季学期《宏观经济学》期末复习题一、选择题1．Macroeconomics includes the study of topics such as （）a. national output, the inflation rate, and the trade deficit.b. the price of Cisco stock, wage differences between genders, and antitrust laws.c. differences in market structure, and how consumers maximize utility.d. None of the above are correct.2. Which of the following is the correct definition of GDP? ( )a. the market value of all goods produced within a countryb. the market value of all final goods and services produced by the citizens of a countryc. the market value of all final goods and services produced within a countryd. None of the above are correct.3. Which of the following is included in the Consumption component of GDP? ( )a. Social Security paymentsb. purchases of foreign goods and servicesc. purchases of newly constructed homesd. All of the above are correct.4. Suppose nominal GDP rose from $500 billion to $600 billion while the GDP deflator increased from 100 to 125. The real GDP ( )a. remained constantb. increasedc. decreasedd. cannot be calculated from these figures5. Which of the following is correct for an economy? ( )a. Income is greater than production.b. Production is greater than income.c. Income always equals production.d. Income equals production only when saving is zero.6. The government reports that "GDP increased by 1.6 percent in the last quarter." This statement means that GDP increased ( )a. by 6.4 percent for the year.b. at an annual rate of 6.4 percent during the last quarter.c. at an annual rate of 1.6 percent during the last quarter.d. at an annual rate of .4 percent during the last quarter.7. The consumer price index is used to ( )a. track changes in the level of wholesale prices in the economy.b. monitor changes in the cost of living.c. monitor changes in the level of real GDP.d. track changes in the stock market.8. Because the CPI is based on a fixed basket of goods, the introduction of new goods and services in the economy causes the CPI to overestimate the cost of living. This is so because ( )a. new goods and services are always of higher quality than existing goods and services.b. new goods and services cost less than existing goods and services.c. new goods and services cost more than existing goods and services.d. when a new good is introduced, it gives consumers greater choice, thus reducing the amount they must spend to maintain their standard of living.9. Which goods are supposed to be included in the CPI? ( )a. all goods and services produced in the economyb. all goods and services that typical consumers buyc. all goods and services in the consumption component of the GDP accountsd. all the goods, but not the services, in the consumption component of the GDP accounts10. When the relative price of a good increases, consumers will respond by buying ( )a. more of it and its substitutes.b. less of it and its substitutes.c. less of it and more of its substitutes.d. more of it and less of its substitutes.11. In a simple circular-flow diagram total income and total expenditure are ( )a. seldom equal because of the dynamic changes which occur in an economy.b. equal only when all goods and services produced are sold.c. always equal because every transaction has a buyer and a seller.d. always equal because of accounting rules.12. Productivity ( )a. is nearly the same across countries and so provides no help explaining differences across countries in the standard of living.b. explains very little of the differences across countries in the standard of living.c. explains some, but not most of the differences across countries in the standard of living.d. explains most of the differences across countries in the standard of living.13. Which of the following is NOT correct? ( )a. Countries that have had higher output growth per person have typically not done so with higher productivity growth.b. A country's standard of living and its productivity are closely related.c. Productivity refers to output produced per hour of work.d. Increases in productivity can be used to increase output or leisure.14. Which of the following is considered human capital? ( )a. knowledge acquired from early childhood education programsb. knowledge acquired from grade schoolc. knowledge acquired from on-the-job trainingd. All of the above are correct.15. When a country saves a larger portion of its GDP, it will have ( )a. less investment, and so have more capital and higher productivity.b. less investment, and so have less capital and higher productivity.c. more investment, and so have more capital and higher productivity.d. more investment, and so have less capital and higher productivity.16. Which of the following equations will always represent GDP in an open economy? ( )a. S = I – Gb. I = Y - C + Gc. Y = C + I + Gd. Y = C + I + G + NX17. Which of the following is considered human capital? ( )a. the comfortable chair in your dorm room where you read economics textsb. the amount you get paid each week to work at the libraryc. the things you have learned this semesterd. any capital goods that require a human to be present to operate18. A budget surplus is created if ( )a. the government sells more bonds than it buys back.b. the government spends more than it receives in tax revenue.c. private savings are greater than zero.d. None of the above are correct.19. Suppose that in a closed economy GDP is equal to 10,000, taxes are equal to 2,500 Consumption equals 6,500 and Government expenditures 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 are correct.20. If the tax revenue of the federal government exceeds spending, then the government ( )a. runs a budget deficit.b. runs a budget surplus.c. runs a national debt.d. will increase taxes.21. What is the future value of $500 one year from today if the interest rate is 6 percent? ( )a. $503b. $515c. $530d. None of the front is correct.22. Lisa deposits $250 in an account and one year later has $270; what was the interest rate? ( )a. 8 percentb. 9 percentc. 10 percentd. None of the above are correct.23. A risk averse person has ( )a. utility and marginal utility curves that slope upward.b. utility and marginal utility curves that slope downward.c. a utility curve that slopes down and a marginal utility curve that slopes upward.d. a utility curve that slopes upward and a marginal utility curve that slopes downward.24. The utility function of a risk-averse person has a ( )a. positive slope and gets steeper as wealth increases.b. positive slope but gets flatter as wealth increases.c. negative slope but gets steeper as wealth increases.d. negative slope and gets flatter as wealth increases.25. Which of the following is a reason for diversification? ( )a.to get the highest possible returnb. to get the most dividendsc.to eliminate riskd. to reduce risk26. Diversification of a portfolio can ( )a. reduce aggregate riskb. reduce idiosyncratic riskc. eliminate all risksd. increase the standard deviation of the portfolio’s return27. Municipal bonds pay a ( )a. low rate of interest because of their high-default risk and because the interest they pay is subject to federal income tax.b. low rate of interest because of their low-default risk and because the interest they pay isnot subject to federal income tax.c. high rate of interest because of their high-default risk and because federal taxes must be paid on the interest they pay.d. high rate of interest because of their low-default risk and because the interest they pay is not subject to federal income tax.28. A mutual fund ( )a. is a financial market where small firms mutually agree to sell stocks and bonds to raise funds.b. is funds set aside by local governments to lend to small firms who want to invest in projects that are mutually beneficial to the firm and community.c. sells stocks and bonds on behalf of small and less known firms who would otherwise have to pay high interest to obtain credit.d. is an institution that sells shares to the public and uses the proceeds to buy a selection of various types of stocks, bonds, or both stocks and bonds.29. The supply of loanable funds curve is upward sloping because a rise in the interest rate ( )a. decreases the opportunity cost of firms’ investment spending.b. increases the opportunity cost of firms’ investment spending.c. decreases the opportunity cost to households of consuming.d. increases the opportunity cost to households of consuming.30. The labor force equals the ( )a. number of people who are employed.b. number of people who are unemployed.c. number of people employed plus the number of people unemployed. ( )d. adult population.31. A college student who is not working or looking for a job is counted as ( )a. neither employed nor part of the labor force.b. unemployed and in the labor force.c. unemployed, but not in the labor force.d. employed and in the labor force.According to the statistics, the labor force is ( )a. 12.1 millionb. 13.3 millionc. 20.0 milliond. 21.2 million33. Most economists agree that eliminating unemployment insurance would ( )a. increase unemployment because people would quit jobs they thought were not secure.b. increase unemployment because if the government didn't provide unemployment insurance, private firms would offer superior insurance.c. reduce unemployment and so improve economic well-being.d. reduce unemployment, but they disagree about whether economic well-being would be enhanced by such a change.34. The natural rate of unemployment is the ( )a. unemployment rate that would prevail with zero inflation.b. rate associated with the highest possible level of GDP.c. difference between the long-run and short-run unemployment rates.d. amount of unemployment that the economy normally experiences.35. An increase in the minimum wage would ( )a. increase both the quantity demanded and the quantity supplied of labor.b. decrease both the quantity demanded and the quantity supplied of labor.c. increase the quantity of labor demanded while decreasing the quantity supplied.d. decrease the quantity of labor demanded while increasing the quantity supplied.36. Providing training for unemployed individuals will help to alleviate ( )a. frictional unemploymentb. seasonal unemploymentc. structural unemploymentd. cyclical unemployment37. Which of the following statements about efficiency wage theory is true? ( )a. Firms do not have a choice about whether they pay efficiency wages or not because these wages are determined are determined by law.b. Paying the lowest possible wage is always the most efficient (profitable).c. Paying above the competitive equilibrium wage may improve worker health, lower worker turnover, improve worker quality, and increase worker effort.d. Paying above the competitive equilibrium wage causes workers to shirk their responsibilities.38. According to the rule of 70, if the interest rate is 5 percent, how long will it take for the valueof a savings account to double? ( )a. about 3.5 yearsb. about 6.3 yearsc. about 12 yearsd. about 14 years39. The fact that someone with a high risk of medical problems is more likely to buy a lot of health insurance is an example of ( )a. moral hazard.b. adverse selection.c. monitoring .d. collective bargaining.40. Economists use the word "money" to refer to ( )a. income generated by the production of goods and services.b. those assets regularly used to buy goods and services.c. the value of a person's assets.d. the value of stocks and bonds.41. Which list ranks assets from most to least liquid? ( )a. currency, fine art, stocksb. currency, stocks, fine artc. fine art, currency, stocksd. fine art, stocks, currency42. Which of the following is included in M2 but not in M1? ( )a. currencyb. demand depositsc. savings depositsd. All of the above are included in both M1 and M243. In a 100-percent-reserve banking system, ( )a. banks can create money by issuing currency.b. banks can create money by lending out reserves.c. the Central bank can increase the money supply with open market sales.d. banks hold as many reserves as they hold deposits.44. If the reserve requirement is 10 percent, this bank ( )a. is in a position to make a new loan of $15,000.b. has less reserves than required.c. has excess reserves of less than $15,000.d. None of the above are correct.45. If the reserve ratio is 20 percent, the money multiplier is ( )a. 50.b. 20.c. 10.d. 5.46. When the number of dollars needed to buy a representative basket of goods falls, the value of money ( )a. rises, and so the price level rises.b. rises, and so the price level falls.c. falls, and so the price level rises.d. falls, and so the price level falls.47. According to the quantity equation, if P = 12, Y = 6, M= 8, then V =( )a. 9.b. 16.c. 4.d. None of the above is correct.48. Which of the following is not a tool of monetary policy? ( )a. open market operationsb. reserve requirementsc. changing the discount rated. increasing the deficit49. The Central bank can increase the money supply by conducting open market ( )a. sales and raising the discount rate.b. sales and lowering the discount rate.c. purchases and raising the discount rate.d. purchases and lowering the discount rate.50. When the money market is drawn with the value of money on the vertical axis, an increase in the money supply ( )a. increases the price level and the value of money.b. increases the price level and decreases the value of money.c. decreases the price level and increases the value of money.d. decreases the price level and the value of money.51. When the price level falls, the number of dollars needed to buy a representative basket of goods ( )a. increases, so the value of money rises.b. increases, so the value of money falls.c. decreases, so the value of money rises.d. decreases, so the value of money falls.52. When the money market is drawn with the value of money on the vertical axis, an increase in the money supply shifts the money supply curve to the ( )a. right, lowering the price level.b. right, raising the price level.c. left, raising the price level.d. left, lowering the price level.53. The nominal interest rate is 3 percent and the inflation rate is 2 percent. What is the realinterest rate? ( )a. 6 percent.b. 5 percent.c. 1 percent.d. 3/2 percent.54. The classical dichotomy refers to the idea that the supply of money( )a. is irrelevant for understanding the determinants of nominal and real variables.b. determines nominal variables, but not real variables.c. determines real variables, but not nominal variables.d. is a determinant of both real and nominal variables.55. According to the principle of monetary neutrality, a decrease in the money supply will notchange ( )a. nominal GDP.b. the price level.c. unemployment.d. All of the above are correct.56. Interest rates stated in the News are( )a. classical variables.b. dichotomous variables.c. nominal variables.d. real variables.57. Menu costs refers to ( )a. resources used by people to maintain lower money holdings when inflation is high.b. the distortion in resource allocation created by uncertainty concerning relative pricechanges created by inflation.c. the distortion in incentives created by inflation when taxes do not adjust for inflation.d. the cost of more frequent price changes induced by higher inflation.58. Foreign-produced goods and services that are sold domestically are called ( )a. imports.b. exports.c. net imports.d. net exports..59. Ivan, a Russian citizen, sells several hundred cases of caviar to a restaurant chain in the United States. By itself, this sale ( )a. increases U.S. net exports and has no effect on Russian net exports.b. increases U.S. net exports and decreases Russian net exports.c. decreases U.S. net exports and has no effect on Russian net exports.d. decreases U.S. net exports and increases Russian net exports.60. Net exports of a country are the value of ( )a. goods and services imported minus the value of goods and services exported.b. goods and services exported minus the value of goods and services imported.c. goods exported minus the value of goods imported.d. goods imported minus the value of goods exported.61. Which of the following statements about trade policy is true? ( )a. A restrictive import quota increases a country’s net exports.b. A restrictive import quota decreases a country’s net exports.c. A country’s trade policy has no im pact on the size of its trade balance.d. None of the above.62. Net capital outflow refers to the purchase of ( )a. foreign assets by domestic residents minus the purchase of domestic assets by foreign residents.b. foreign assets by domestic residents minus the purchase of foreign goods and services by domestic residents.c. domestic assets by foreign residents minus the purchase of domestic goods and services by foreign residents.d. domestic assets by foreign residents minus the purchase of foreign assets by domestic residents.63. Net capital outflow measures ( ).a. foreign assets held by domestic residents minus domestic assets held by foreign residents.b. the imbalance between the amount of foreign assets bought by domestic residents and the amount of domestic assets bought by foreigners.c. the imbalance between the amount of foreign assets bought by domestic residents and the amount of domestic goods and services sold to foreigners.d. None of the above is correct.64. The nominal exchange rate is the ( )a. nominal interest rate in one country divided by the nominal interest rate in the other country.b. rate at which a person can trade the currency of one country for the currency of another.c. price of a good in one country divided by the price of the same good in another.d. the number of goods a person can trade for a similar good in another country.65. Purchasing-power parity theory does not hold at all times because( )a. many goods are not easily transported.b. the same goods produced in different countries may be imperfect substitutes for each other.c. Both a and b are correct.d. prices are different across countries.66. If the exchange rate changes from 150 yen per dollar to 100 yen per dollar, the dollar has( )a. appreciated and so buys more Japanese goods.b. appreciated and so buys fewer Japanese goods.c. depreciated and so buys more Japanese goods.d. depreciated and so buys fewer Japanese goods.67. If P = domestic prices, P* = foreign prices, and e is the nominal exchange rate, which of the following is implied by purchasing-power parity? ( )a. P = e/P*b. 1 = e/P*c. e = P*/Pd. None of the above is correct.68. According to purchasing-power parity theory, if a McDonald’s B ig Mac cost $2.50 in theUnited States and 5 euros in France, then the nominal exchange rate should be ( )a. 2 euros per dollar.b. 1euro per dollar.c. 1/2 euro per dollar.d. None of the above is correct.69. Which of the following people or firm would be pleased by a depreciation of the Canadian dollar? ( )a. a Canadian tourist traveling in Europeb. a Canadian importer of wine to Canadac. a French exporter of wine to Canadad. an Italian importer of Canadian steel70. In the open-economy macroeconomic model, if the supply of loanable funds increases, netcapital outflow ( )a. and the real exchange rate increase.b. and the real exchange rate decrease.c. increases and the real exchange rate decreases.d. decreases and the real exchange rate increases.71. Business cycles( )a. are easily predicted by competent economists.b. have never occurred very close together.c. can only be seen as changes in real GDP.d. None of the above is correct.72. If a government increases its budget deficit, then the real exchange rate ( )a. and domestic investment rise.b. and domestic investment fall.c. rises and domestic investment falls.d. falls and domestic investment rises.73. In the open-economy macroeconomic model, if a country's interest rate increases, its netcapital outflow ( )a. and the real exchange rate increase.b. and the real exchange rate decrease.c. increases and the real exchange rate decreases.d. decreases and the real exchange rate increases.74. The aggregate demand curve ( )a. slopes downward for the same reasons that market demand curves slope downward.b. is vertical in the long run.c. shows an inverse relation between the price level and the quantity of all goods and services demanded.d. All of the above are correct.75. The model of aggregate demand and aggregate supply explains the relationship between ( ).a. the price and quantity of a particular good.b. unemployment and output.c. wages and employment.d. real GDP and the price level.76. The downward slope of the aggregate demand curve shows that an increase in the ( )a. money supply causes the aggregate quantity of goods and services demanded to increase.b. money supply causes the aggregate quantity of goods and services demanded to decrease.c. price level causes the aggregate quantity of goods and services demanded to increase.d. price level causes the aggregate quantity of goods and services demanded to decrease.77. The aggregate supply curve is upward sloping rather than vertical in( )a. the short and long run.b. neither the short nor long run.c. the long run, but not the short run.d. the short run, but not the long run.78. Which of the following shifts aggregate demand to the right? ( )a. an increase in the price levelb. an increase in the money supplyc. a decrease in the price leveld. a decrease in the money supply79. A decrease in government spending initially and primarily shifts( )a. aggregate demand right.b. aggregate demand left.c. aggregate supply right.d. neither aggregate demand nor aggregate supply.80. In the open-economy macroeconomic model, if a country's interest rate increases, its net capital outflow ( )a. and the real exchange rate increase.b. and the real exchange rate decrease.c. increases and the real exchange rate decreases.d. decreases and the real exchange rate increases.81. An increase in government spending initially and primarily shifts ( )a. aggregate demand right.b. aggregate demand left.c. aggregate supply right.d. neither aggregate demand nor aggregate supply.82. Which of the following is not included in aggregate demand?a. purchases of stock and bondsb. purchases of services such as visits to the doctorc. purchases of capital goods such as equipment in a factoryd. purchases by foreigners of consumer goods produced in the United States83. Which of the following shifts aggregate demand to the left? ( )a. an increase in the price levelb. an increase in the money supplyc. a decrease in the price leveld. a decrease in the money supply84. Which of the following is upward sloping? ( )a. both the long-run and the short-run Phillips curveb. neither the long-run nor the short-run Phillips curvec. only the long-run Phillips curved. only the short-run Phillips curve85. Which of the following is downward sloping? ( )a. both the long-run and the short-run Phillips curveb. neither the long-run nor the short-run Phillips curvec. only the long-run Phillips curved. only the short-run Phillips curve86．According to liquidity preference theory, the price level and interest rate are ( )a. positively related as are the interest rate and aggregate demand.b. inversely related as are the interest rate and aggregate demand.c. positively related while the interest rate and aggregate demand are inversely related.d. inversely related while the interest rate and aggregate demand are positively related. 87．If there is excess money demand, people will ( )a. deposit more into interest-bearing accounts, and the interest rate will fall.b. deposit more into interest-bearing accounts, and the interest rate will rise.c. withdraw money from interest-bearing accounts, and the interest rate will fall.d. withdraw money from interest-bearing accounts, and the interest rate will rise.88. The misperceptions theory of the short-run aggregate supply curve says that if the price level increases more than people expect, firms believe that the relative price of what they producehas( )a. decreased, so they increase production.b. decreased, so they decrease production.c. increased, so they increase production.d. increased, so they decrease production.89. The sticky wage theory of the short-run aggregate supply curve says that when prices fall unexpectedly, the real wage ( )a. rises, so employment rises.b. rises, so employment falls.c. falls, so employment rises.d. falls, so employment falls.90. When a country's central bank increases the money supply, its ( )a. price level rises and its currency appreciates relative to other currencies in the world.b. price level rises and its currency depreciates relative to other currencies in the world.c. price level falls and its currency appreciates relative to other currencies in the world.d. price level falls and its currency depreciates relative to other currencies in the world.91. During a recession the economy experiences ( )a. rising employment and income.b. rising employment and falling income.c. rising income and falling employment.d. falling employment and income.92. Which of the following is an adverse supply shock? ( )a. a decrease in the money supplyb. a tax cutc. a worldwide droughtd. decreased government spending93. An adverse supply shock will cause output ( )a. and prices to rise.b. and prices to fall.c. to rise and prices to fall.d. to fall and prices to rise94. Which of the following policies would stabilization policy activists support when the economy is experiencing unemployment above the natural rate? ( )a. a decrease in the money supplyb. a reduction in tax ratesc. a decrease in government purchasesd. None of the above is correct.95. According to the theory of liquidity preference, an increase in the price level causes the ( )a. interest rate and investment to rise.b. interest rate and investment to fall.c. interest rate to rise and investment to fall.d. interest rate to fall and investment to rise.96. If the MPC = 3/5, then the government purchases multiplier is ( )a. 5/3.b. 5/2.c. 5.d. 15.97. Suppose the government increases expenditures by $6 billion. If the multiplier effect exceeds the crowding-out effect, then ( )a. the aggregate-supply curve shifts to the right by more than $6billionb. the aggregate-supply curve shifts to the left by more than $6billionc. the aggregate-demand curve shifts to the right by more than $6billion。