ECON1050 – Spring Term (Macro) – Exercise 3
Instructions: Prepare the answers to the 2022 ROGO test following on the
next page. Be ready to discuss answers during the class. You may prepare
written notes, which you can use in class.
Please note that your class teacher is unlikely to be able to go through more
than 15 questions maximum (but will provide you with all answers). If you do
the test after the tutorials, do try to answer before consulting the answers and
try to give yourself the same amount of time as you will get at the actual
ROGO (1 hour).
The test has the exact same structure and level of difficulty as the forthcoming
2023 ROGO test except that in the 2022 test, one question was removed so
there were only 24 questions (in the 2023 test there will be 25).
The marking criteria are as follows: A correct answer gives 4 marks, and an
incorrect or no answer gives 0 marks. The maximum mark out of 25 question
is thus 100 and the minimum mark is 0. With 24 questions the mark would be
(4*X)/96 where X is the number of correct answers out of 24. For example,
10 correct answers would result in a mark equal to (4*10)/96=41.66 or 42
after rounding. But to repeat, the 2023 ROGO test will not have 24 questions
but 25.
1
, ECON1050 – Spring Term (Macro) – Exercise 3
1. “Changes in nominal variables have no influence on real variables”. This statement
is known as
a. Real Business Cycle (RBC) theory
b. Keynesian economics
c. Monetary non-neutrality
d. The classical dichotomy
e. Long-run policy analysis
2. Which of the following statements is not true
a. Monetary policy in the Euro Area is set by the European Central Bank
b. When a central bank sells government bonds to the public, the money supply
decreases
c. Monetary policy in the UK is set by the Chancellor of the Exchequer in consultation with
the Bank of England
d. When a central bank buys government bonds from the public, the money supply
increases
e. A central bank cannot perfectly control the money supply in an economy
3. You are told that in a closed economy, private saving is £20 billion, private
consumption is £15 billion, public saving is -£10 billion and the GDP is £100 billion. What is
government purchases equal to?
a. There is not enough information to answer the question
b. £55 billion
c. £65 billion
d. £75 billion
e. None of the above
2
Instructions: Prepare the answers to the 2022 ROGO test following on the
next page. Be ready to discuss answers during the class. You may prepare
written notes, which you can use in class.
Please note that your class teacher is unlikely to be able to go through more
than 15 questions maximum (but will provide you with all answers). If you do
the test after the tutorials, do try to answer before consulting the answers and
try to give yourself the same amount of time as you will get at the actual
ROGO (1 hour).
The test has the exact same structure and level of difficulty as the forthcoming
2023 ROGO test except that in the 2022 test, one question was removed so
there were only 24 questions (in the 2023 test there will be 25).
The marking criteria are as follows: A correct answer gives 4 marks, and an
incorrect or no answer gives 0 marks. The maximum mark out of 25 question
is thus 100 and the minimum mark is 0. With 24 questions the mark would be
(4*X)/96 where X is the number of correct answers out of 24. For example,
10 correct answers would result in a mark equal to (4*10)/96=41.66 or 42
after rounding. But to repeat, the 2023 ROGO test will not have 24 questions
but 25.
1
, ECON1050 – Spring Term (Macro) – Exercise 3
1. “Changes in nominal variables have no influence on real variables”. This statement
is known as
a. Real Business Cycle (RBC) theory
b. Keynesian economics
c. Monetary non-neutrality
d. The classical dichotomy
e. Long-run policy analysis
2. Which of the following statements is not true
a. Monetary policy in the Euro Area is set by the European Central Bank
b. When a central bank sells government bonds to the public, the money supply
decreases
c. Monetary policy in the UK is set by the Chancellor of the Exchequer in consultation with
the Bank of England
d. When a central bank buys government bonds from the public, the money supply
increases
e. A central bank cannot perfectly control the money supply in an economy
3. You are told that in a closed economy, private saving is £20 billion, private
consumption is £15 billion, public saving is -£10 billion and the GDP is £100 billion. What is
government purchases equal to?
a. There is not enough information to answer the question
b. £55 billion
c. £65 billion
d. £75 billion
e. None of the above
2
