宏观经济学试题 Macroeconomics B Answers.docVIP

JIANGXI UNIVERSITY OF FINANCE AND ECONOMICS School of International Studies Macroeconomic Theory (Final Exam A, Two hours) Answers Prof.X. Wang, M. Zhang ,P.Lu,L. Xiao and J.Li JUNE 2008 B Attention: Please use the separate paper and booklet provided to answer the following questions and identify the numbers of the question you are doing. Part One: Definitions (3 pts each, 15pts in total) 1.Potential GDP is the value of real GDP when all the economy’s labour, capital, land, and entrepreneurial ability are fully employed. 2.Business cycle—a periodic but irregular up-and-down movement in production. 3.The economic growth rate is the percentage change in the quantity of goods and services produced from one year to the next. 4.Fiscal policy is the government’s attempt to influence economic activity by changing its taxes, spending, deficit, and debt policies. 5.Government debt is the total amount that the government has borrowed梩hat the government owes. s Part Tow: Multiplier Choice ( please choose one of the best answers among the choices given in each question and then blacken it on your answer sheet. 2 points each, 50 points in total) 1.An advance in technology shifts the production function upward and shifts the labor A) demand curve leftward. B) supply curve leftward. C) demand curve rightward. D) supply curve rightward. Answer: C 2.Suppose that the money wage rate is $22 per hour and that the price level is 100. If the money wage rate falls to $11 per hour and the price level does not change, what happens to the real wage rate? A) The real wage rate doubles. B) The real wage rate rises but does not double. C) The real wage rate does not change. D) The real wage rate falls. Answer: D 3. Investment demand is the relationship between investment and the____ other things remaining the same. A) real interest rate B) nominal interest rate C) inflation rate D) price level Answer: A 4