Microeconomics I exam 2021 with answers!

Macroeconomics I exam 2021
Answers to be found at the end


1. The following data are from an economy with 2 goods: good X and good Y:
2019 2020
Price of X €12 €15
Price of Y €42 €55
Quantity of X 100 150
Quantity of Y 50 40
How different is nominal GDP in 2020 compared to 2019?
A. 34.8% higher
B. 34.8% lower
C. 30.8% lower
D. 24.8% higher

2. Assume that the money supply increases by 7%, real GDP increases by 4%, and the
velocity of money increases by 5%. According to the Quantity Theory of Money, what is the
inflation rate?
A. 9%
B. 5%
C. 0%
D. 8%

3. An economy has a monetary base of 2 billion euro. Calculate the money supply in case all
money is held as demand deposits and banks hold 10 percent of their deposits as reserves.
A. 20 billion euro
B. 0.2 billion euro
C. 2 billion euro
D. 1.8 billion euro

4. Which of the following can be used by the central bank to control the money supply?
A. The velocity rate of money
B. The inflation rate
C. The reserve requirement
D. The currency-deposit ratio

5. Consider the labour market of a hypothetical country. Assume that 50% of employees
lose their jobs every year. Once unemployed, 40% of people finds a new job within a year. In
equilibrium, 5 million people are unemployed. Which of the following is correct?
A. The labour force equals 15 million people
B. Total employment is 5 million people
C. Total employment is 4 million people
D. The unemployment rate is 5%