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Economics B 2018
Economics B 2018
Macroeconomics 1 / Microeconomics 1
Course 2,150,1
- For each question, mark only one answer as correct. If you mark several, you will
receive zero points for that question.
- Please note that there are several questions asking, “which of the following is false?”.
Here as well, mark only one answer.
- If not stated otherwise, the notation follows the notation used in the textbook and the
course.
- Please round numerical results to the number of decimal places given by the list of
answers.
- The number of points awarded per question serves as an indication of the number of
minutes you should allocate to that question.
- This exam contains 42 questions over 23 pages, for a maximum of 180 points.
Good Luck!
This collection of exam questions and its sample solutions are protected by copyright.
All rights, above all concerning but not limited to the rights to duplication and distribution,
translation and reproduction of parts or the entire document, are reserved. No part of
this exam and its sample solutions may to be reproduced, edited with the use of electronic
systems, duplicated or distributed in any form (print, photocopy, microfilm or any other
procedure) without written consent by the author.
1
Collection Exam Questions FS 2018 Economics B
Good A Good B
year price quantity price quantity
2015 1 100 2 200
2016 3 200 1 100
2017 3 100 2 200
2018 2 200 3 300
Which of the following statements concerning the growth rate of this economy is cor-
rect?
A. The growth rate of nominal gdp between the year 2017 and 2018 was 8.5%.
B. The growth rate of real gdp between the year 2017 and 2018 was 12% using
2015 year prices.
C. The growth rate of real gdp between the year 2015 and 2016 was 14% using
year 2018 as base year.
D. Using the gdp deflator based on first year prices, inflation between the year
2015 and 2017 was 30%.
E. None of the above.
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Collection Exam Questions FS 2018 Economics B
120
Level, Index (1990: 100)
115
110
Index
105
100
95
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
4
3 yearly growth rate
2
percentage change
1
0
1
2
3
4
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Which of the following statements is wrong?
A. Between 1990 and 2016, per capita real gdp increased by about a 1/5.
B. In the years 2000 and 2006, growth was about the same as in the year before.
C. In 2012, per capita real gdp neither increased nor decreased.
D. In 1998, per capita real gdp was at about the same level as in 1990.
E. The financial crisis of 2008-2009 triggered the longest recession since
1990.
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Collection Exam Questions FS 2018 Economics B
Y = 4K 0.2 L0.8 .
In addition, the depreciation rate is δ = 0.05, the population growth rate is n = 0.02,
and the saving rate is s = 0.10.
(a) (3 Points) In steady state, what is the stock of physical capital per worker?
A. 9
B. 25
C. 32
D. 40
E. None of the above
(b) (3 Points) In steady state, what is the level of gdp per worker?
A. 8
B. 12
C. 20
D. 24
E. None of the above
(c) (3 Points) In steady state, what is the level of consumption per worker?
A. 0.64
B. 5.76
C. 7.20
D. 10.53
E. None of the above
(d) (3 Points) In steady state, what is the marginal product of labour?
A. 10
B. 12
C. 21
D. 25
E. None of the above
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Collection Exam Questions FS 2018 Economics B
π + wL − P C.
wL
π+ + i(B + P K) − C.
P
C. Nominal household savings equals
∆B + P ∆K.
∆B + K∆P.
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Collection Exam Questions FS 2018 Economics B
(c) (2 Points) Which of the following statements concerning competitive market equi-
librium is false?
A. The marginal product of labour is equal to the real wage.
B. The marginal product of capital is equal to the real rental price of capital.
C. The demand for physical capital decreases in the real interest rate.
D. The demand curve of labour slopes up when the substitution
effect is large.
E. None of the above
B.
( ) (w) (w)
B1
C2 B0 L2 + K1
C1 + = (1 + i0 ) + K0 + L1 + − P P 2
1 + i1 P P 1 1 + i1 1 + i1
C.
( ) (w) (w) B2
C2 B0 L2 + K2
C1 + = (1 + i0 ) + K0 + L1 + P 2
− P
1 + i1 P P 1 1 + i1 1 + i1
D.
( ) (w) (w) B2
C2 B0 L2 + K2
C1 + = (1 + i0 ) + K0 + L1 + P 2
− P
1 + i2 P P 1 1 + i2 1 + i2
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Collection Exam Questions FS 2018 Economics B
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Collection Exam Questions FS 2018 Economics B
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Collection Exam Questions FS 2018 Economics B
(b) (2 Points) Assume that there is a positive technological shock. Which of the fol-
lowing statements is false?
A. The higher marginal product of labour, mpl, induces more job accept-
ances.
B. Vacancies are procyclical—hence they increase.
C. The job-finding rate increases because market opportunities became bet-
ter.
D. The rate of unemployment increases because it is procyclical
E. None of the above.
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Collection Exam Questions FS 2018 Economics B
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Collection Exam Questions FS 2018 Economics B
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Collection Exam Questions FS 2018 Economics B
Gt + Vt = Tt ,
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Collection Exam Questions FS 2018 Economics B
Gt + Vt = Tt ,
Gt + Vt = Tt ,
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Collection Exam Questions FS 2018 Economics B
Btg − Bt−1
g
Gt + Vt = Tt + .
P
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Collection Exam Questions FS 2018 Economics B
For each of the following statements, decide whether the statement is true or false.
(b) (1 Point) The Lucas hypothesis on monetary shocks is that the real effect of a
given size monetary shock is larger, the more unstable the underlying monetary
environment.
A. True
B. False
(c) (1 Point) The nominal stock of money, Mt , is predicted to be countercyclical.
A. True
B. False
(d) (1 Point) The real wage, wt /Pt , is predicted to be procyclical.
A. True
B. False
(e) (1 Point) The average product of labour, Yt /Lt , is predicted to be countercyclical.
A. True
B. False
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Collection Exam Questions FS 2018 Economics B
For each of the following statements, decide whether the statement is true or false.
(c) (1 Point) Labour hoarding improves the model’s predictions about labour produc-
tivity.
A. True
B. False
(d) (1 Point) In the longer run prices do not move.
A. True
B. False
(e) (1 Point) The price level, Pt , is predicted to be procyclical.
A. True
B. False
(f) (1 Point) The average product of labour, Yt /Lt , is predicted to be countercyclical.
A. True
B. False
(g) (1 Point) The sticky prices model predicts involuntary unemployment.
A. True
B. False
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Collection Exam Questions FS 2018 Economics B
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Collection Exam Questions FS 2018 Economics B
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Collection Exam Questions FS 2018 Economics B
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Collection Exam Questions FS 2018 Economics B
i = π̄ + r + a · (π − π̄) + b · (y − ȳ),
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Collection Exam Questions FS 2018 Economics B
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Collection Exam Questions FS 2018 Economics B
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Collection Exam Questions FS 2018 Economics B
(d) (2 Points) Which option is preferred by the bank’s shareholders that have limited
liability?
A. The are indifferent.
B. Option 1
C. Option 2
D. None of the above
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