Macroeconoics_exam_20090630_XiaoLiping[]武汉大学宏观经济学试卷.doc

武汉大学2008-2009学年第二学期期末考试 经济与管理学院 2008级 2009年6月30日 宏观经济学（A卷） Principles of Macroeconomics (Paper A) Instructions: You have two hours to complete the test. Full marks are 100 points. Write your answers on the answer sheet. You can answer your questions either in English or Chinese. Read the questions carefully before answering them. Be precise and to the point.Good luck! Problem 1 (10 points) True or False? Explain your answer completely but briefly. James Bond is about to retire and is thinking of selling his car. He spends ￡1,000 in repairing and tuning the engine, and finally agrees to sell it to Miss Money Penny for ￡10,000. As a result, GDP increases by ￡11,000. Robinson Crusoe will live better by catching fish, if he has more physical capital, human capital, natural resources and technological knowledge. It is one case of moral hazard that a patient is more likely to apply for health insurance than healthy men. According to the theory of efficiency wages, firms who pay wages at the equilibrium level will operate more efficiently. The introduction of ATM machines has made it easier to withdraw cash from checking accounts. As a result, the Central Bank now has to buy more bonds in the market every time it wants to increase the stock of money in the economy by a certain amount. Problem 2 (10 points) Suppose there is a small farming economy. It produces some corn and imports 7 bushels of corn. Of these, 80 bushels are consumed, 10 go for government purchases to feed the army, and 6 go into domestic investment as increases in inventories, 11 bushels are exported. In addition, taxes are 12 bushels. What is the GDP of the economy? Calculate private saving, public saving and net capital outflow. Then explain the relationship between saving and investment. Assuming in the economy, women have worked more hours in producing corn. How would this affect GDP? Explain the paradox, “When a person marries his or her gardener, GDP goes down.” Do you think GDP is a good