MACRO 2 : Multiple CHOICE
1) Small open economy with a _____ exchange rate, the ____ cannot
influence income in the short run through budgetary policy.
Floating, government
2) If a country with open economy with a higher I than NAT SAU, then in
the long run, this economy will have a trade ___ and the country will be
a net ___.
Deficit, borrower
3) In the very Long run, solow model predicts that production per effective
worker will increase if ____.
The population growth rate (w) falls
4) Economy initially in its Long Run natural equilibrium experience decline
in income due to increa in in taxes. If ceteris paribus, this economy will
return to its Long run natural equilibrium because of ____ the ____.
A fall, expected price level
5) If Ai does not deliver (increase) in revenue that is expected, tirux will
scale back I, then in the short run this leads ____ in income and ____ in
the r in a closed economy.
A fall, a fall
6) Large open economy lia S , saving rate increases amon the population.
Thus, NX will ___ in the short run because exchange rate has ____.
Rise, fallen
7) The reason why prices could rise in the short run according to the
imperfect information model is that:
,A firm may believe that the relative price of its goods has risen.
8) In the ISLM model, LM slopes ____ because if ____ is higher demand
increases.
Upwards, income
9) Got in an open economy increases military expenditure in the Long Run,
this causes exchange rate to ____ and will ____ NX.
Rise, lower
10) If an economy is in a SS where a total production grows 4% / year and n
is 1%/year, then according to solow model, investment per effective
worker will grow by ____ % annually.
Zero
11) If companies in closedeconomy want to invest more, then in the Long
Run , interest will ____ and investment will ____.
Increase, remain unchainged.
12) Acoording to random walk hypothesis
Only unexpected policy changes effect on consumption.
13) Closed economy, inhabitants save half of disposable income. G, T, I are
all 500 and total production is 1500. If S = 0,75 then in the Long Run …
Remain unchanged.
14) Small open economy, floating exchange rate, higher demand for I will (
in the short run) lead to ____ in NCO and ____ in NX.
Decrease, decrease
15) ….
, 16) Increase ( equal size) in T and G will cause increase to ____ according to
Keynesion cros model. This is because of the ___
Increase, multiplier effect
17) Small open economoy has Investment increase in AI. In the long run,
exchange rate will ____ and NX will ____.
Increase, decrease
18) If i is lower than depreciations then ____ could increase in the solow
model without technological growt.
Consumption per worker
19) Due to a positive economic shock, income in a closed economy exceeds
long term natural level of production in the short run. If nothing else
changes, change in price will eventually shift the LM curve ____
allowing the economy to return to its Long term natural level of
production.
upwards
1) Small open economy with a _____ exchange rate, the ____ cannot
influence income in the short run through budgetary policy.
Floating, government
2) If a country with open economy with a higher I than NAT SAU, then in
the long run, this economy will have a trade ___ and the country will be
a net ___.
Deficit, borrower
3) In the very Long run, solow model predicts that production per effective
worker will increase if ____.
The population growth rate (w) falls
4) Economy initially in its Long Run natural equilibrium experience decline
in income due to increa in in taxes. If ceteris paribus, this economy will
return to its Long run natural equilibrium because of ____ the ____.
A fall, expected price level
5) If Ai does not deliver (increase) in revenue that is expected, tirux will
scale back I, then in the short run this leads ____ in income and ____ in
the r in a closed economy.
A fall, a fall
6) Large open economy lia S , saving rate increases amon the population.
Thus, NX will ___ in the short run because exchange rate has ____.
Rise, fallen
7) The reason why prices could rise in the short run according to the
imperfect information model is that:
,A firm may believe that the relative price of its goods has risen.
8) In the ISLM model, LM slopes ____ because if ____ is higher demand
increases.
Upwards, income
9) Got in an open economy increases military expenditure in the Long Run,
this causes exchange rate to ____ and will ____ NX.
Rise, lower
10) If an economy is in a SS where a total production grows 4% / year and n
is 1%/year, then according to solow model, investment per effective
worker will grow by ____ % annually.
Zero
11) If companies in closedeconomy want to invest more, then in the Long
Run , interest will ____ and investment will ____.
Increase, remain unchainged.
12) Acoording to random walk hypothesis
Only unexpected policy changes effect on consumption.
13) Closed economy, inhabitants save half of disposable income. G, T, I are
all 500 and total production is 1500. If S = 0,75 then in the Long Run …
Remain unchanged.
14) Small open economy, floating exchange rate, higher demand for I will (
in the short run) lead to ____ in NCO and ____ in NX.
Decrease, decrease
15) ….
, 16) Increase ( equal size) in T and G will cause increase to ____ according to
Keynesion cros model. This is because of the ___
Increase, multiplier effect
17) Small open economoy has Investment increase in AI. In the long run,
exchange rate will ____ and NX will ____.
Increase, decrease
18) If i is lower than depreciations then ____ could increase in the solow
model without technological growt.
Consumption per worker
19) Due to a positive economic shock, income in a closed economy exceeds
long term natural level of production in the short run. If nothing else
changes, change in price will eventually shift the LM curve ____
allowing the economy to return to its Long term natural level of
production.
upwards
