VEE Macroeconomics Exam Questions With 100% Verified Solutions | Late
Update
1. Orange is a small, new country which produces only 120
one item, personal computers. Output for the past
few years (20X1-20X3) has been 1,000 @ $500, 2,000
@ $550, and 1,500 @ $600. Assume that there are
no technological improvements. The GDP deflator for
20X3, with 20X1 as a base year, is closest to:
2. The neoclassical growth model is based on a two-fac- Labor, capital, and total
tor production function, according to which an econ- factor productivity
omy's aggregate level of output is most likely deter-
mined using which combination of variables?
3. The IS and LM curves are most likely plotted along Income and real interest
which axes? rates
4. The very short-run aggregate supply curve is most horizontal
accurately described as:
5. Before being purchased by a consumer, an item pass- $30
es through the following stages in the value chain:
Receipt of raw materials supplier from manufacturer
($100), Receipt of manufacturer from retailer ($400),
Receipt of retailer from final consumer ($600). After a
10% increase in the cost of raw materials, the manu-
facturer's price rises by 15%. If half of the increase in
manufacturer's price can be passed along to the final
consumer, the decrease in the amount of value added
by the retailer is closest to:
6. A central bank seeking to moderate an overheating sell government bonds
economy would most likely:
1/8
, VEE Macroeconomics Exam Questions With 100% Verified Solutions | Late
Update
7. Which of the following is most likely to shift the aggre- Increase in capacity utiliza-
gate demand curve to the right? tion
8. Confirmation of an increase in a country's standard of per capital real GDP
living is most likely provided by an increase in its:
9. Before being purchased by a consumer, an item passes $9
through the following stages: Raw materials supplier
(value added = $4), Manufacturer (value added = $5),
Retailer (value added = $6). The price paid by the re-
tailer to the manufacturer is closest to:
10. If government spending on final goods and services decrease
increases while private investment, net exports, and
total expenditures on domestically produced output
remain constant, consumer spending will most likely:
11. All else equal, if 1 percent of discouraged workers in an be unattected
economy are reclassified as voluntarily unemployed,
the activity ratio will most likely:
12. An inflation index's failure to capture the impact of quality bias
greater processing power in each new version of a
particular computer included in the underlying basket
of goods is most accurately described as:
13. Which of the following statements is most accurate? should be addressed with
According to the Austrian school of thought, an eco- minimal government in-
nomic crisis on the scale of the Great Depression: tervention
14. Which of the following most likely to be interpreted as Higher weekly manufac-
an indicator of a future economic expansion? turing hours
2/8
Update
1. Orange is a small, new country which produces only 120
one item, personal computers. Output for the past
few years (20X1-20X3) has been 1,000 @ $500, 2,000
@ $550, and 1,500 @ $600. Assume that there are
no technological improvements. The GDP deflator for
20X3, with 20X1 as a base year, is closest to:
2. The neoclassical growth model is based on a two-fac- Labor, capital, and total
tor production function, according to which an econ- factor productivity
omy's aggregate level of output is most likely deter-
mined using which combination of variables?
3. The IS and LM curves are most likely plotted along Income and real interest
which axes? rates
4. The very short-run aggregate supply curve is most horizontal
accurately described as:
5. Before being purchased by a consumer, an item pass- $30
es through the following stages in the value chain:
Receipt of raw materials supplier from manufacturer
($100), Receipt of manufacturer from retailer ($400),
Receipt of retailer from final consumer ($600). After a
10% increase in the cost of raw materials, the manu-
facturer's price rises by 15%. If half of the increase in
manufacturer's price can be passed along to the final
consumer, the decrease in the amount of value added
by the retailer is closest to:
6. A central bank seeking to moderate an overheating sell government bonds
economy would most likely:
1/8
, VEE Macroeconomics Exam Questions With 100% Verified Solutions | Late
Update
7. Which of the following is most likely to shift the aggre- Increase in capacity utiliza-
gate demand curve to the right? tion
8. Confirmation of an increase in a country's standard of per capital real GDP
living is most likely provided by an increase in its:
9. Before being purchased by a consumer, an item passes $9
through the following stages: Raw materials supplier
(value added = $4), Manufacturer (value added = $5),
Retailer (value added = $6). The price paid by the re-
tailer to the manufacturer is closest to:
10. If government spending on final goods and services decrease
increases while private investment, net exports, and
total expenditures on domestically produced output
remain constant, consumer spending will most likely:
11. All else equal, if 1 percent of discouraged workers in an be unattected
economy are reclassified as voluntarily unemployed,
the activity ratio will most likely:
12. An inflation index's failure to capture the impact of quality bias
greater processing power in each new version of a
particular computer included in the underlying basket
of goods is most accurately described as:
13. Which of the following statements is most accurate? should be addressed with
According to the Austrian school of thought, an eco- minimal government in-
nomic crisis on the scale of the Great Depression: tervention
14. Which of the following most likely to be interpreted as Higher weekly manufac-
an indicator of a future economic expansion? turing hours
2/8
