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SECTION B ( short answer questions) consists of 6 Questions. Answer any four questions in
the answer book provided. Each question carries 10 marks.

Question 1. Consider the following data on a country’s GDP

Year Nominal GDP (billions) GDP Deflator

( base year: 2009)
2018 $756 117.0
2019 $868 149.2

a. What was the growth rate of nominal GDP between 2018 and 2019? ( 2 marks)
14.81%
b. What was the growth rate of GDP deflator between 2018 and 2019? ( 2 marks)
27.52%
c. What was real GDP in 2018 ( in 2009 dollars)? What was real GDP in 2019 ( in 2009
dollars)? ( 2 marks) 646.15 & 581.77
d. What was the growth rate of real GDP between 2018 and 2019 ?( 2 marks) -9.69%
e. Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP?
Explain. ( 2 marks)

Question 2. The fixed basket of goods contains 10 books and 5 movie tickets.

Year Price ($)

Book Compact disk
2018 $5 $3
2019 $6 $4
2020 $7 $5

a. Calculate cost of the basket of goods in each year. ( 3 marks) 65 80 95

b. Compute the consumer price index in each year by taking the year 2018 as the base year.
(3 marks) 100 123.8 146.15
c. Calculate the rate of inflation. ( 4 marks) 23.08 18.74

Question 3. What is productivity? (2 marks)

What are determinants of productivity? (4 marks)
How to increase productivity of a country? (4 marks)
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Question 4. Suppose GDP is $200 trillion, taxes are $38 trillion, private saving is $8 trillion, and
budget deficit is $1.2 trillion. Assumong the economy is closed, calculate consumption,
government purchases, national saving and investment. (10 marks) 154tri 39.2tri 6.8tri 6.8tri

Question 5 : in the graph of labor market, horizontal axis is quantity of labor (Q), measured by
unit of labor, vertical axis is real wage (W/P), measured by $. Use the graph below to answer the
following questions:
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a. If the minimum wage is $5, how many people are umemployed? (1 mark)
b. If the minimum wage is $6, how many people are umemployed? (1 mark)
c. If the minimum wage is $7, how many people are umemployed? (2 marks)
d. If the minimum wage fell from $7 to $5, how does umemployment change? (2 marks)
e. If the minimum wage rose from $5 to $7, how does umemployment change? (2 marks)
f. If the minimum wage rose from $6 to $7, how does unemployment change? (2 marks)

Question 6: suppose that the T-account for First National Bank is as follows:

Assets Liabilities
Cash $500,000 Deposits $500,000

a. If the Central Bank requires banks to hold 10% of deposits as reserves, how much in
excess reserves does First National now hold? (3 marks) 50,000 and excess 450,000
b. What will be the total money supply? (7 marks) 5,000,000
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SECTION A
1. Which of the following is true?
a. Although levels of real GDP per person vary substantially from country to country, the
growth rate of real GDP per person is similar across countries.
b. Productivity is not closely linked to government policies.
c. The level of real GDP per person is a good guage of economy prosperity, and the
growth rate of real GDP per person is a good gauge of economic progress.
d. Productivity may be measured by the growth rate of real GDP per person.
2. Which of the following does the levek of real GDP measure?
a. Total real income
b. Productivity
c. The standard of living
d. All of the above is correct
3. Blabla
4. Blabla
5. The identity that shows that GDP is both total income and total expenditure is represented by
a. GDP = Y
b. Y = PI + DI + NX
c. GDP = GNP – NX
d. Y = C + I + G + NX
6. Which of the following is correct?
a. some degree of umemployment is inevitable
b. other things the same an increase in the number if peopke who are unemployed
c. cyclical unemployment is inversely related to short-run economic fluctuations
d. all of the above are correct
7. the BLS reported there were 48.6 million people over age 25 who had at least a bachelor’s
degree. Of this number, 38.0 million were in the labor force and 36.9 million were employed.
What was the LF participation rate and the unemployment rate for this group?
a. 97% & 2.9%
b. 97% & 2.3%
c. 78% & 2.9%
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d. 78% & 2.3%

8. the country of Hykania does not trade with any other country. Its GDP is $20 billion. Its
government purchases $3 billion worth of goods and services each year, collects $3 billion in
taxes, and provides $2 billion in transfer payments to households. Private saving in Hykania is
$4 billion. What is investment in Hyrkania?
a. $4 billion
b. $3 billion
c. $2 billion
d. not enough in4
9. which of the following is the correct the question
a. the market value of all goods produced within a country
b. the market value of final goods and services produced by the citizens of a country
c. the market value of final goods and services produced within a country
d. None Correct
10. An inflation rate calculated using the CPI shows the rate of change of
a. all prices
b. the prices of all final goods and services
c. the prices of all consumers goods
d. the prices of some consumer goods
11. the Federal Reserve does all except which of the following?
a. control the supply of money
b. control the value of money
c. make loans to individuals
d. regulate the banking system
12. the central bank can increase the Money supply by conducting open market
a. sales and raising the discount rate
b. sales and lowering the discount rate
c. purchases and raising the discount rate
d. purchases and lowering the discount rate
13. In the country of Hyrkania, the CPI in 2000 was 120 and the CPI in 2001 was 132.
Jake, a resident of Hyrkania, borrowed money in 2000 and repaid the loan in 2001. If
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the nominal interest rate on the loan was 12 percent, then the real interest rate was

a. 12 percent.
b. 10 percent.
c. 2 percent.
d. impossible to determine without knowing the base year for the CPI.

14. Suppose that the nominal interest rate was 3 percent and the inflation rate was 1 percent.
What happened with the value of savings? c
(a) The dollar value of savings increased at 1 percent, and the value of savings
measured in goods increased at 2 percent.

(b) The dollar value of savings increased at 2 percent, and the value of savings
measured in goods increased at 3 percent.

(c) The dollar value of savings increased at 3 percent, and the value of savings
measured in goods increased at 2 percent.

(d) The dollar value of savings increased at 4 percent, and the value of savings
measured in goods increased at 3 percent.
15. A nation's standard of living is best measured by its
real GDP per person/ producivity
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16.
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Bài 5
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TRAC NGHIM
16.C
17.A
18 D
19 D
20 B
21 A
22 D
23 D
24 D
25 D
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