Macroeconomics Exam

Exam

1) Refer to Table. At an aggregate output level of $3,000 million, planned expenditure equals
A) $3,000.
B) $3,600.
C) $2,800.
D) $4,400.
2) Refer to Table. The MPC in this economy is
A) 0.5.
B) 0.6.
C) 0.7.
D) 0.8.
3) Refer to Table. At an aggregate output level of $4,000 million, the unplanned inventory change is
A) $1,200 million.
B) 0.
C) $400 million.
D) -$400 million.
4) Refer to Table At an aggregate output level of $7,000 million, the unplanned inventory change
A) 0.
B) $400 million.
C) -$400 million.
D) -$1,200 million.
5) Refer to Table. If aggregate output equals ________, there will be a $200 million unplanned
decrease in inventories.
A) $3,000 million
B) $4,000 million
C) $5,000 million
D) $6,000 million
6) Refer to Table. The equilibrium level of aggregate output equals
A) $3,000 million.
B) $4,000 million. Answer sheet ‫االجابات فى‬
C) $5,000 million. ‫اللى وارا الن هنصحح منه اوعى تنسى‬
D) $6,000 million.
zero ‫عشان مش تاخد‬

1 Mr :- Mahmoud Hamed
Macroeconomics Exam
7) Refer to Table. Which of the following statements is FALSE?
A) At an output level $4,000, there is a $400 million unplanned inventory decrease.
B) If aggregate output equals $4,000 million, then aggregate saving equals $1000 million.
C) The MPC for this economy is 0.8.
D) At an output level of $3,000 million, there is a $600 million unplanned inventory decrease.
8) Refer to Table. Planned saving equals planned investment at an aggregate output level of
A) $4,000 million.
B) $5,000 million.
C) $6,000 million.
D) $7,000 million.
9) Refer to Table. Planned investment equals actual investment at
A) all income levels.
B) all income levels above $6,000 million.
C) all income levels below $6,000 million
D) an income level of $6,000 million.
10) If C = 100 + .8Y and I = 50, then the equilibrium level of income is
A) 600.
B) 375.
C) 187.5.
D) 750.

11) Refer to Figure Along aggregate expenditure AE1, the MPC is

A) .6. B) .7. C) .8. D) .9.
12) Refer to Figure What is the value of Point A?
A) $3,500 billion. B) $6,000 billion.
C) $7,000 billion. D) cannot be determined from the given information
13) Refer to Figure What is the value of Point B?
A) $7,000 billion B) $3,500 billion
C) $6,000 billion D) cannot be determined from the given information
14) Refer to Figure. What is the value of the expenditure multiplier?
A) 8 B) 10
C) 5 D) 20
15) Refer to Along AE1, injections equal leakages when aggregate output equals____ billion.
A) 1,500 B) 3,000
C) 2,500 D) 2,000
2 Mr :- Mahmoud Hamed
Macroeconomics Exam
16) Refer to Figure If aggregate expenditures are represented by AE2 and government
spending increases by $20 billion, equilibrium aggregate output increases by $________ billion.
A) 100
B) 200
C) 400
D) 800
17) Legalizing all forms of illegal activities would
A) reduce measured GDP.
B) reduce the size of the underground economy and increase measured GDP.
C) reduce both the underground economy and measured GDP.
D) increase the size of the underground economy and reduce measured GDP.

18-Refer to the above diagram. Flow (1) represents:

A) wage, rent, interest, and profit income.
B) land, labor, capital, and entrepreneurial ability.
C) goods and services.
D) consumer expenditures.
19-Refer to the above diagram. Flow (2) represents:
A) wage, rent, interest, and profit income.
B) land, labor, capital, and entrepreneurial ability.
C) goods and services.
D) consumer expenditures.
20- Refer to the above diagram. Flow (3) represents:
A) wage, rent, interest, and profit income.
B) land, labor, capital, and entrepreneurial ability.
C) goods and services.
D) consumer expenditures.
21- Refer to the above diagram. Flow (4) represents:
A) wage, rent, interest, and profit income.
B) land, labor, capital, and entrepreneurial ability
C) goods and services.
D) consumer expenditures.
22-In terms of the circular flow diagram, households make expenditures in the_____ market and
receive income through the _____ market.
A) product; financial
B) resource; product
C) product; resource
D) capital; product

3 Mr :- Mahmoud Hamed
Macroeconomics Exam

23)Refer to the above diagram. The average propensity to consume is 1 at point:

A) F.
B) A.
C) D.
D) B.
24)Refer to the above diagram. The marginal propensity to consume is equal to:
A) AE/0E.
B) CF/CD.
C) CB/AB.
D) CD/CF.
25)Refer to the above diagram. At income level F the volume of saving is:
A) BD.
B) AB.
C) CF-BF.
D) CD.
26)Refer to the above diagram. Consumption will be equal to income at:
A) an income of E.
B) an income of F.
C) point C.
D) point D.
27)Refer to the above diagram. The economy is dissaving:
A) in the amount CD.
B) at all income levels greater than E.
C) at income level H.
D) at income level E.
28)Refer to the above diagram. The marginal propensity to save is:
A) CD/EF.
B) CB/CF.
C) CB/AF.
D) EF/CB.
4 Mr :- Mahmoud Hamed
Macroeconomics Exam

29) Refer to Table. Assume that this economy produces only two goods Good X and Good Y. If year
1 is the base year, the value for this economyʹs GDP deflator in year 2 is
A) 93.9.
B) 100.
C) 106.5.
D) 179.
30) Refer to Table. Assume that this economy produces only two goods Good X and Good Y. If year
1 is the base year, the value for this economyʹs inflation rate between year 1 and year 2 is
A) -6.1%.
B) -5.5%.
C) 6.5%.
D) 79%.

Answer sheet
1 11 21
2 12 22
3 13 23
4 14 24
5 15 25
6 16 26
7 17 27
8 18 28
9 19 29
10 20 30

5 Mr :- Mahmoud Hamed
Macroeconomics Exam

Answer sheet
1 B 11 C 21 D
2 D 12 A 22 C
3 C 13 B 23 B
4 B 14 C 24 C
5 C 15 D 25 D
6 D 16 A 26 A
7 B 17 B 27 C
8 C 18 A 28 A
9 D 19 B 29 C
10 D 20 C 30 C

6 Mr :- Mahmoud Hamed