1.

If the stock market booms,

(2 Points)
aggregate supply increases, which the central bank could offset by decreasing the money
supply.
aggregate supply increases, which the central bank could offset by increasing the money
supply.
aggregate demand increases, which the central bank could offset by decreasing the money
supply.
aggregate demand increases, which the central bank could offset by increasing the money
supply.
2.Given a nominal interest rate of 6 percent, in which case would you earn
the lowest after-tax real rate of interest?
(2 Points)
Inflation is 4 percent; the tax rate is 25 percent. 3,5
Inflation is 3 percent; the tax rate is 20 percent. 6-(6+3)*20% =4,2
Inflation is 2 percent; the tax rate is 15 percent. 6-(6+2)*15% =4,8
The after-tax real interest rate is the same for all of the above.
3.If the US's domestic investment exceeds national saving, then the US
has
(2 Points)
negative net capital outflows and positive net exports.
positive net capital outflows and positive net exports.
positive net capital outflows and negative net exports.
negative net capital outflows and negative net exports.
4.Unemployed worker decides to stay at home to do housework
(2 Points)
Labor force decrease and number of unemployed increases
Labor force increases and unemployment rate increase
Labor force decreases and number of unemployed decreases
Labor force increases and unemployment rate decrease
5.If the economy is initially in long-run equilibrium, then shifts in
aggregate demand affect prices
(2 Points)
and output only in the short run.
in the long and short run, but affect output only in the long run.
in the long and short run, but affect output only in the short run.
and output in both the short and long run.
6.When Claudia, a U.S. citizen, purchases a handbag made in France, the
purchase is
(2 Points)
 a U.S. export and a French import.
both a U.S. and French import.
a U.S. import and a French export.
neither an export nor an import for either country.
7.Wealth is distributed from debtors to creditors when inflation is
(2 Points)
high, but expected.
 unexpectedly low.
low, but expected.
unexpectedly high.
8.In the long run, if the central bank increases the rate at which it
increases the money supply,
(2 Points)
inflation will be higher.
unemployment will be lower.
real GDP will be higher.
All of the above are correct.
9.If money is neutral and velocity is stable, an increase in the money
supply creates a proportional increase in
(2 Points)
the price level
nominal output.
real output.
both the price level and nominal output.
10.If saving is greater than domestic investment, then
(2 Points)
there is a trade surplus and Y > C + I + G. [a biết là surplus thôi =)))]
there is a trade deficit and Y > C + I + G.
there is a trade surplus and Y < C + I + G.
there is a trade deficit and Y < C + I + G.
11.A country sells more to foreign countries than it buys from them. It
has
(2 Points)
a trade deficit and negative net exports.
a trade deficit and positive net exports.
a trade surplus and positive net exports.
a trade surplus and negative net exports.
12.The model of aggregate demand and aggregate supply explains the
relationship between
(2 Points)
real GDP and the price level
unemployment and output.
the price and quantity of a particular good.
wages and employment.
13.Arnold puts money into an account. One year later he checks and sees
that he has 8 percent more dollars and that his money will buy 5 percent
more goods.
(2 Points)
The nominal interest rate was 13 percent and the inflation rate was 8 percent.
The nominal interest rate was 8 percent and the inflation rate was 3 percent.
The nominal interest rate was 8 percent and the inflation rate was -3 percent.
None of the above is correct.
14.John transfers $1000 from his savings account to his checking account.
This transaction will
(2 Points)
increase both M1 and M2.
decrease M1 and not change M2.
increase M1 and decrease M2.
None of the above is correct ---- decrease M2, not change M1 ( M2=M1+ SA)
15.Which following events will cause the structural unemployment?
(2 Points)
There is less worker availability in the market because retirees leave the market
Worker association wants to raise workers' wage
Workers currently take the vocational training to find a new job (cái này giống đi học cao
đẳng à?
None of the above is correct
16.An increase in the price level and a decrease in real GDP in the short
run could be created by
(2 Points)
an increase in government expenditures.
an increase in the money supply.
bad weather in farm states. Lower supply  AS dịch trái
a fall in stock prices.
17.A country has $60 million of saving and domestic investment of $40
million. Net exports are
(2 Points)
- $20 million.
- $100 million.
 $100 million
$20 million.
18.Savings deposits are included in
(2 Points)
M1 and M2.
M2 but not M1.
neither M1 nor M2.
M1 but not M2.
19.If purchasing-power parity holds, then the value of the
(2 Points)
real exchange rate is equal to the difference in inflation rates between the two countries.
nominal exchange rate is equal to one.
real exchange rate is equal to one.
real exchange rate is equal to the nominal exchange rate.
20.
(2 Points)
creditors receive a lower real interest rate than they had anticipated.
debtors receive a higher real interest rate than they had anticipated.
debtors pay a higher real interest rate than they had anticipated
creditors pay a lower real interest rate than they had anticipated.
21.When the central bank sells government bonds to commercial banks,
the reserves of the banking system
(2 Points)
decrease, so the money supply increases.
increase, so the money supply decreases.
decrease, so the money supply decreases.
increase, so the money supply increases.
22.The economy will move to a point on the short-run Phillips curve
where unemployment is lower if
(2 Points)
the inflation rate decreases.  increase
the government increases its expenditures.
the central bank decreases the money supply.
None of the above is correct.
23.Exchange rates are 120 yen per dollar, 1.1 euro per dollar, and 26
pesos per dollar. A bottle of beer in New York costs 8 dollars,900 yen in
Tokyo, 8 euro in Munich, and 200 pesos in Cancun. Where is the most
expensive and the cheapest beer in that order?
(2 Points)
 Tokyo, Cancun
Cancun, New York
New York, Munich
Munich, Tokyo
24.In the long run,
(2 Points)
the natural rate of unemployment depends primarily on the level of aggregate demand.
inflation depends primarily upon the money supply growth rate.
there is a tradeoff between the inflation rate and the natural rate of unemployment.
All of the above are correct.
25.Which of the following is incorrect concerning the long run?
(2 Points)
Per-capita real GDP depends on productivity.
Higher money supply growth leads to higher output growth.
An unemployment rate of zero is unobtainable.
An increase in the money supply raises the price level.

26.An economy is in long-term equilibrium. Covid 19 pandemic occurs

and most economists would agree that the Covid 19 pandemic combines
aspects of both supply and demand shocks. A supply shock is anything
that reduces the economy's capacity to produce goods and services, at
given prices. Lockdown measures preventing workers from doing their
jobs can be seen as a supply shock. A demand shock, on the other hand,
reduces consumers' ability or willingness to purchase goods and services,
at given prices.

a. Use AD-AS model to show what happens to output and the price level as
the economy moves from the initial to the new short-run equilibrium. (10
points)

b. To avoid a severe recession in short-run, should Central Bank sell bonds on
the open market? Explain your answer. (10 points)

c. If policymakers do nothing, please show the new long-run equilibrium. What
causes the economy to move from short run to long run equilibrium? (5
points)

(25 Points)
An economy is operating with output $250 billion below its natural rate,
and fiscal policy makers want to close this recessionary gap. Assume that
if there is no crowding out, the marginal propensity to consume is 0.6 and
the price level is completely fixed in the short run.

a. In what direction and by how much would government need to change
government spending to close the recessionary gap? Explain your thinking. (10
points)

b. Can you think of a way in which the government can close the recessionary
gap without changing the government’s budget balance? Please show the
amount of changing in fiscal policy. (15 points)