Course name: Macroeconomics, the European Perspective
Date examination: 8 July 2019
Duration 3 hrs; from 10.00 to 13.00
Examination: retake
Total number of pages: 15
Total number of questions: 6
Full name :--------------------------------------------------------------------------------------
Student ID Number : -------------------------------------------------------------------------
Signature : --------------------------------------------------------------------------------
Put your ID on your table for inspection.
Exam instructions
FULL RETAKE: ALL 6 QUESTIONS
SUPPLEMENTARY RETAKE: 3 OUT OF 6 QUESTIONS
During the examination
Nobody is allowed to leave the room within the first 30 minutes after the start of the
exam.
You are not allowed to go to the restroom unless you have permission of the
Examiner or an invigilator.
MOBILE PHONES AND OTHER COMMUNICATION DEVICES ARE ONLY
ALLOWED WHEN SWITCHED OFF AND STORED IN CLOSED BAGS.
It is not allowed to use any study aids such as books, readers, calculators
(pre-programmed), compilation of law decrees and lawbooks.
Answer the exam questions on the question form (within the outlined subjects).
Results/Post-examination regulations
The results of the examination will be published in OSIRIS ultimately at the 15th of July
2019.
The inspection session will be announced on Blackboard.
You can request a photocopy of your answers at the Student Desk up and until four
weeks after publication of the results.
Four weeks after the results of this exam are published, the original exam is available
to you, when a declaration is signed, stating that no appeal has been made or will be
made.
After the announcement of the exam results in OSIRIS you have six weeks within
which to lodge an appeal against your grade.
© 2019 Utrecht University School of Economics
All rights reserved. No part of this examination may be reproduced or transmitted in any form by any electronic
or mechanical means (including photocopying, recording or information storage and retrieval) without the prior
written permission of the Utrecht University School of Economics.
1
, Question 1 – Economic fluctuations (20 points)
An economy is described by the following equations:
Y=C+I+G
C = 0.75 YD + 20
T = 0.2 Y + 4
G = 20
I = 25
a. Calculate equilibrium output and equilibrium private and public saving.
b. CORE states that consumption is smoothed more than investment. Explain i) why this is the
case and ii) how consumers manage to smooth their consumption.
2
Date examination: 8 July 2019
Duration 3 hrs; from 10.00 to 13.00
Examination: retake
Total number of pages: 15
Total number of questions: 6
Full name :--------------------------------------------------------------------------------------
Student ID Number : -------------------------------------------------------------------------
Signature : --------------------------------------------------------------------------------
Put your ID on your table for inspection.
Exam instructions
FULL RETAKE: ALL 6 QUESTIONS
SUPPLEMENTARY RETAKE: 3 OUT OF 6 QUESTIONS
During the examination
Nobody is allowed to leave the room within the first 30 minutes after the start of the
exam.
You are not allowed to go to the restroom unless you have permission of the
Examiner or an invigilator.
MOBILE PHONES AND OTHER COMMUNICATION DEVICES ARE ONLY
ALLOWED WHEN SWITCHED OFF AND STORED IN CLOSED BAGS.
It is not allowed to use any study aids such as books, readers, calculators
(pre-programmed), compilation of law decrees and lawbooks.
Answer the exam questions on the question form (within the outlined subjects).
Results/Post-examination regulations
The results of the examination will be published in OSIRIS ultimately at the 15th of July
2019.
The inspection session will be announced on Blackboard.
You can request a photocopy of your answers at the Student Desk up and until four
weeks after publication of the results.
Four weeks after the results of this exam are published, the original exam is available
to you, when a declaration is signed, stating that no appeal has been made or will be
made.
After the announcement of the exam results in OSIRIS you have six weeks within
which to lodge an appeal against your grade.
© 2019 Utrecht University School of Economics
All rights reserved. No part of this examination may be reproduced or transmitted in any form by any electronic
or mechanical means (including photocopying, recording or information storage and retrieval) without the prior
written permission of the Utrecht University School of Economics.
1
, Question 1 – Economic fluctuations (20 points)
An economy is described by the following equations:
Y=C+I+G
C = 0.75 YD + 20
T = 0.2 Y + 4
G = 20
I = 25
a. Calculate equilibrium output and equilibrium private and public saving.
b. CORE states that consumption is smoothed more than investment. Explain i) why this is the
case and ii) how consumers manage to smooth their consumption.
2
