Quiz 1

Which of the following activities is included in the investment expenditure category of GDP for France?
A French firm buys a new machine from Japan.
Renault France imported car engines from Poland to be used in its car assembly plant in France.
An individual bought a 10 year old house in France.
A German firm located in France exports machines to Germany.

Which of the following statements is true regarding GDP?

It measures total market value of goods and services produced in a country in a given period of time.
It measures the value of all goods and services consumed by householdsin a country in a given period of time.
It
It is
is the
the total
sum ofwealth
laborofincome,
the country.
gross operating surplus and net transfers/taxes in a country in a given period of
time
In GDP measurement by expenditure approach, which of the following activities is NOT included in
government purchase of goods and services G for France?
The French government buys some furniture from Sweden.
The French government buys textbooks (printed in France) for the schools.
The French government builds new roads.
The French government gives every HEC student a housing subsidy of €100.

Which of the following activities will lead to a change in the GDP of France?
A Belgium firm exports some furniture to France.
A French engineer works for Google in US.
A French firm invests in a new factory in India.
An American company sets up a new factory to produce semi-conductors in France.

Which of the following events add €10 000 to the GDP to France?
You bought a €10000 apartment built in 1970 in France.
A French firm produces and exports wine worth €10000 (with 100% local content) to US.
The French treasury issued/sold €10000 worth of bonds.
The French government bought €10000 worth of masks from China.
Suppose Renault exports a car produced in France to Belgium. The sale brings €10,000 but contains
€3,000 of imported parts. The French GDP increases by
3 000
0
7 000
10 000
Suppose a retail firm ABC imported €3000 worth of watches but sold them for only €2000 to domestic
customers. Which of the following statement is true?
The value added of ABC is negative.
The value added of ABC is positive since it needs to pay wages to its workers.
The value added of ABC is €2000

Which of the following activities is included in the consumption expenditure category of GDP?
You invited a friend to see a movie at the movie theater together.
You found a €10 bill on the floor.
You bought an old car from a friend.
You parents gave you €1000 on your birthday.

Quiz 2
The "true" real GDP growth of an economy tend to be higher than the officially measured real GDP
growth whenever formerly informal activities became formal.
1
0

Suppose an economy produces 2 goods and the prices and quantities are given by the following table: Apples Oranges
The real GDP growth of the economy from 2021 to 2022 using 2021 as the base year is Price Quantity Price Quantity
75% 2021 1 100 2 50
28.60% 2022 2 120 3 70
125%
30%

Suppose consumers purchase only 2 goods as follows: Apples Oranges

The rate of inflation in 2022 relative to 2021 according to the CPI using 2021 as the base year is: Price Quantity Price Quantity
71.40% 2021 1 150 2 100
174% 2022 2 180 3 200
25.10%
65.70%

When inflation is positive, nominal GDP growth is lower than real GDP growth.
1
0

Indicate how the following transactions change GDP:

A secondhand car dealer bought a used car for €8000 and sold it to Prof. Goh for €10 000. In addition,
Prof. Goh paid €500 in yearly insurance fees.
Consumption of goods and services increased by €10 500.
Consumption of goods and services increased by €2500.
Consumption of goods and services increased by €500.
Consumption of goods and services increased by €2000.
Which of the following is NOT a reason why the current year official CPI inflation rate could be mis-
measured?
Consumers' That
tend tois,substitute
the true CPI
awayinflation
from morerate is different
expensive from
to less the official
expensive goodsrate.
but the CPI inflation rate is
calculated
Some pricebased uponcould
increases a fixed
bebase year
due to basket
higher of goods.
quality of goods and services but the official rate failed to adjust
adequately for quality changes.
The prices of imported goods are not taken into account in the official CPI measure.
Consumers are buying some new products that do not appear in the base year basket of goods.
According to the expenditure approach, which of the following activities will lead to a change in
consumption expenditure but no change in the GDP of France?
A French resident plants some vegetables in her own garden for her own consumption
A French resident purchased a bottle of French wine produced this year.
A French resident purchased an old house in France.
Renault sold 10 cars (produced last year) from its inventory to consumers.
because you consumed more food compared to the representative consumer and the prices of food has
increased more than the national inflation rate.
1
0

QUIZ
In the 3past 5 years, the growth rate of potential real GDP of Freedonia was 5%. Which of the following
statements is most likely to be true?
Freedonia would likely grow at less than 5% next year.
Business
The actualcycles dorates
growth not exist for Freedonia
of Freedonia in the last 5 years were likely to be different from 5% due to shocks that
hit Freedonia
The output gap of Freedonia was 5%

The output gap can be positive in the contraction phase of the business cycle
Yes always
No never
Yes after the peak of the cycle at the beginning of the contraction
Yes just before the trough of the cycle.

If a country's potential growth is positive, then its actual growth rate must always be positive
1
0
The IMF estimated that the output gap last quarter for US was 1%. This means that the US economy
was
growing at 1%
producing 1% less than the potential output level
producing 1% more than the potential output level
growing at 1% more than the potential output growth rate

Which of the following least likely coincides with stylized facts on business cycles?
Economies go through phases of expansions and contractions.
Business cycles involve fluctuations in many macroeconomic variables.
Business cycles are recurrent.
Business cycles are periodic.

Quiz
Which4 of the following is NOT a reason why a recession in US is a negative aggregate demand shock for
Mexico?
Americans are less likely to travel to Mexico for tourism
Mexico car producers are able to buy cheaper car engines from US because of the recession
US consumers purchase less manufacturing products of Mexico due to the recession

Oil price increase is a negative supply shock because

car owners find it expensive to use their car as much as before
consumers reduce their purchase of goods as good prices increase due to high oil prices
governments try to keep energy prices low using subsidies
firms find it less profitable to produce the same amount as before as input costs increase

In general inventory investments are

counter-cyclical and leading
procyclical and coincidental
procyclical and leading
acylical

Which of the following data series is least likely to be a good leading indicator for France?
imports
Purchasing managers index.
Stock prices
Inflation rate
If you are anticipating a downturn (contraction), it is better to invest in stocks like Walmart or
Carrefour now since
investors tend to buy more stocks and less bonds when anticipating a downturn
their stock prices are uncertain
their stock prices are expected to fall more than the market in the future
their stock prices are expected to fall less than the market or may even rise in the future

Business cycles are caused by changes in the population growth rate

1
0
is decreasing, but stock prices and inventory investment are starting to decrease rapidly. You conclude
that in the last quarter the economy is most probably in which part of the cycle?
In contraction, just before the trough.
In expansion, just before the peak
In contraction, just after the peak.
In expansion, just after a trough.
When aggregate demand falls below current output, which of the following provides an explanation of
why the economy's GDP is likely to fall in the near future?
Firms are likely to reduce output to avoid unwanted accumulation of inventories.
Consumers are likely to buy more imports because domestic production has decreased.
Government is likely to increase transfers to households.
Firms are likely to export goods to other countries as domestic demand falls.

Quiz 5 of the following event will NOT lead to an increase in labor productivity (meaured by real GDP
Which
per hour worked)?
An increase in the average number of hours worked by each worker.
More efficient management practices.
Widespread adoption of AI technology.
An increase in the skill level of workers.

Using the growth accounting framework, which of the following statements is true?
If labor and capital grow at 1% and productivity is constant, output grows at 1%.
If labor and productivity (A) grow at 1% and capital is constant, output grows at 2%.
If capital and productivity grow at 1% and labor is constant, output grows at 1%
If labor, capital and productivity grow at 1%, output grows at 3%.
Which of the following is most likely to be one of the causes of why Italy's labor productivity (real GDP
per worker) is lower than its European peers?
Its inflation rate is higher than other European countries.
Its investment rate is higher than other European countries.
Its population growth rate is higher than other European countries.
Its human capital per worker is lower than other European countries
High growth rates coming from high rate of capital accumulation are not sustainable in the very long
run if TFP does not change because of diminishing returns to capital.
1
0

Which of the following policies will most likely increase the TFP of a country?
An increase in unemployment benefits.
Better control of corruption
Raising the age of retirement.
An increase in the tariffs on imports of steel.

Which of the following events will raise potential real GDP of a country?
A increase in households' expenditure on food.
An increase in the level of inventory investment.
An increase in the number of tourist arrivals.
A fall in the unemployment rate.

The Solow growth accounting equation aims to identify determinants of TFP growth.
1
0

Which of the following is the most likely cause of Japan’s TFP being lower than that of US?
Its population growth rate is lower than in US.
Its capital stock per worker is lower than in US.
It has a large labor force in the retail sector which has much lower TFP than in US.
It has a large labor force in steel and automobile sectors which have lower TFP than in US.

Quiz 6
Which of the following actions taken by a bank will NOT increase its reserves?
Obtain a loan from other commerical banks.
Buy a bond from the central bank.
Obtain a loan from the central bank.
Increase the interest rate paid on deposits to attract more depositors from other banks.

Sea shells can serve as money if

they are easy to carry around
they are pretty
they do not change forms over time
they are generally accepted as a medium of exchange

Which of the following statements is true concerning the different monetary aggregates in US?
Monetary base consists of commercial banks' reserves.
M1 money supply consists of cash in circulation, checkable deposits and saving deposits
Monetary base consists of cash in vaults and commercial banks’ reserves.
M1 money supply consists of checkable deposits and commercial bank reserves.
Suppose you read that the money supply M1 decreased in the last quarter. Which of the following
statements is most likely to be true?
Customers had been on net depositing cash into checking accounts in the banking system.
Households were optimistic about the future and had been on net borrowing from banks rather than saving.
Firms were pessimistic about future prospects and did not wish to borrow from the banks to invest.
Lots of investors were borrowing from banks to invest in crypto-currencies.

Since reserves requirement is abolished in the US, the demand for reserves of the US banks is now zero.
1
0
Which of the following is NOT a reason why banks cannot create unlimited amount of loans and
deposits?
The public would like to use credit cards for payments.
Banks need to hold reserves for liquidity management or for meeting reserves requirements.
The public would like to use cash as a means of payment for some transactions.
There are a limited number of potential borrowers who are risk worthy.

Which of the following transactions will decrease money supply M1?

Auchan asks its supplier of milk products for a 30 days trade credit.
Anne asks for a loan from her bank to buy a car.
Charlie pays back his bank a loan of €1000 with a check drawn on another bank.
A supplier of car lights repaid a loan (granted by Renault) of €10 000 to Renault.
Banks can create money because households and firms are willing to use bank deposits as a medium of
exchange and for settlement of debt.
1
0
Quiz 1
In 2021, a French firm exported €1 million worth of defense equipment to Singapore. Which of the follo
The sales increased Singapore’s GDP by € 1 million.
The sales left Singapore’s GDP unchanged.
The sales reduced Singapore’s GDP by €1 million.

Which of the following activities is NOT included in the investment expenditure category of GDP for Fr
A French firm purchases new furniture (made in France) for its offices.
An individual bought a new house in France
A French firm buys a new machine from Japan.
A French firm exports machines to Germany

Which of the following activities is included in the consumption expenditure category of GDP?
You parents gave you €1000 on your birthday.
You saved €100 in your bank account.
You bought an old car from a friend.
You invited a friend to go to a concert together.

Suppose Renault sold €10 million worth of cars in France and

€10 million worth of cars in Spain. All the cars are made in
France but contains €1 million of imported wind shields from
Spain. To produce the wind shields, the Spanish producer
imported €0.25 million worth of glass manufactured in
France. The French GDP increases by:
€19.25 million
€20 million
€19 million
€23 million

Which of the following activities will NOT lead to a change in the GDP of France?
An American company sets up a new factory to produce semi-conductors in France
The French government builds new hospitals
A Belgium firm imports some wine from France
A French engineer gets hired by Google in US

Which of the following statements is true regarding GDP?

It is the total value added of all firms and the public sector in a country in a given time period.
It measures the total market value of final goods and services produced by a country’s citizens in a given time
It measures the market value of all goods and services produced since 1900.
It measures the total wealth of the country at a point in time.
of goods and services G for France?
subsidy of €100.
II. The French government buys some furniture from Sweden.
III. The French government builds new roads.
II and III only
Suppose a French retail firm bought €10 000 worth of TVs
from South Korea and sold them at €10 000 to local
customers. Which of the following statement is most likely to
be true?
The value added of the firm from the sales of TVs is 0.
The value added of the firm from the sales of TVs is €10 000.
The value added of the firm is negative since it needs to pay its employees and rent.

Quiz 2
Suppose your consumption basket is different from the
consumption basket used by the the statistical office to
compute the official inflation rate, which of the following
statement is most likely to be true?
The basket of goods and services used to compute the official rate is only based upon the rural households co
The prices of the goods and services used by the statistical office will always be higher than the prices you pai
The inflation rate that you experienced will in general be different from the offical inflation rate.
Your consumption basket will contain more goods and services than that used by the the statistical office.

When inflation rate is negative, nominal GDP growth is lower than real GDP growth
1
0

of 2022 relative to 2021 using 2021 as the base year?

50% Pears
53% Price
2% 2021 2
15% 2022 3

The contribution from the public sector to an economy's

value added is the same as G, government's purchase of
goods and services from the expenditure approach.
1
0
Indicate how the following transactions change GDP:
€1000 in yearly insurance fees for the apartment.
Consumption of goods and services increased by €5000.
Consumption of goods and services increased by €206 000.
Consumption of goods and services increased by €6000
Invetsment increased by €200 000.

The "true" real GDP growth of an economy in a given year

tend to be higher than the officially measured real GDP
growth whenever illegal activities (like production and
consumption of drugs) became legal in that year.
1
0

An economy produces 2 goods pears and peaches. According

to the following table what is the real GDP growth rate of the
economy from 2021 to 2022 using 2021 as the base year?
37.50% Pears
32.50% Price
75% 2021 0,5
27.50% 2022 0,75

According to the expenditure approach, which of the following activities will lead to a change in consu
A French resident plants some vegetables in her own garden for her own consumption
Renault sold 10 cars (produced last year) from its inventory to consumers
A French resident purchased an old house in France.
A French resident purchased a bottle of French wine produced this year

Quiz 3
The output gap can be negative in the expansion phase of the business cycle
Yes always
No never
Yes just before the peak of the expansion
Yes just after the trough of the cycle at the beginning of the expansion

It is possible for an economy to grow faster than its potential growth rate for a short period of time (le
1
0

In the past 5 years, the growth rate of potential real GDP of Freedonia was 5%. Which of the following
Freedonia would likely grow at less than 5% next year.
Business cycles do not exist for Freedonia
The output gap of Freedonia was 5%
The actual growth rates of Freedonia in the last 5 years were likely to be different from 5% due to shocks that

The world bank estimated that the output gap last quarter for India was 3%. This means that
The difference between nominal GDP growth and real GDP growth was 3%
the potential output growth of India was 3%
India was growing at 3% more than the potential output growth rate
India was producing at 3% above the potential output level

Which of the following is not a feature of business cycles?

The contraction phase of a business cycle is from the peak to the trough
Economies go through phases of expansions and contractions.
the length of expansion is approximately seven years
Business cycles are recurrent.

Quiz 4
Which of the following data series is least likely to be a good leading indicator for France?
inventory investment
French consumer sentiment index
imports
unemployment rate

Which of the following is NOT a reason why a boom in US is a positive aggregate demand shock for Me
Americans are more likely to travel to Mexico for tourism.
US consumers purchase more goods and services from Mexico.
Mexico car producers are able to buy cheaper car engines from US.

If you stocks
buying are expecting an upturn
are better than (expansion),
buying bonds since bondyou should
prices tend to invest in investment goods companies like Gen
fluctuate more than share prices
firms tend to delay investment during an upturn
demand for investment goods tend to move in a counter-cyclical fashion
demand for investment goods tend to increase rapidly during an upturn

In Freedonia over the last three months you observe that

consumption was rising and unemployment was falling, but
stock prices and inventory investment were starting to fall
rapidly. You conclude that in the last quarter the economy is
most probably in which part of the cycle?
In contraction, just after the peak.
In expansion, just after a trough.
In contraction, just before the trough.
In expansion, just before the peak

When aggregate demand falls below current output, which of the following provides an explanation o
Firms are likely
Consumers to export
are likely goods
to buy toimports
more other countries
becauseas domestic
domestic demand falls.
production has
decreased.
Firms are likely to reduce output to avoid unwanted accumulation of
inventories.
Government is likely to increase transfers to households.

A tightening
households findof credit
it more to firms
difficult to getisaabank
supply
loan shock because
to buy goods and
services.
the government does not want to subsidize firms' financing costs.
firms
firms find
face it difficult
higher to fire costs
financing workers.
and hence it's less profitable to supply the
same amount of output at the same price level.

Business cycles are caused by changes in the number of people employed in the economy.
1
0

In general housing starts are

acyclical
procyclical and lagging
counter-cyclical and leading
procyclical and leading

Quiz 5
Which of the following
in other European willaNOT
countries and largerbe a good
fraction explanation
of Italian workforcewhy
are Italy has a lower labor productivity (real GD
employed in small firms.
The level of population is declining in Italy.
The human capital per worker is lower in Italy.
Italien firms promote employees based upon nepotism rathar than merits.

Using the growth accounting framework, which of the following statements are true?
If
If labor, capital
labor and andgrow
capital productivity
at 4% andgrow at 4%, output
productivity grows atoutput
is constant, 4%. grows at
4%.
If labor and productivity (A) grow at 4% and capital is constant, output
grows at 4%.
If capital and productivity grow at 4% and labor is constant, output grows at
4%

Which of the following events will most likely increase the TFP of a country?
An increase in the age of retirement.
An increase in imports of consumer goods.
Better protection of intellectual property rights.
A fall in the rate of population growth.

Which of the following events will lead to an increase in labor productivity (as measured by real GDP p
A fall in the unemployment rate.
Widespread adoption of AI technology which raises TFP.
An increase in the population growth rate.
An increase in the average number of hours worked by each worker

A country can sustain positive labor productivity growth (real GDP per hour worked) as long as TFP gro
1
0

Which of the following is the most likely cause of Japan’s average TFP being lower than that of the US?
Japan
Japan'shas lower
retail unemployment
sector has lower TFP ratecompared
than the US.
to that of the US and a large
fraction of Japanese workforce is in retail.
Japan has a lowerachievement
The educational fertility rateofthan the US.
15 year olds is lower in Japan than in the
US

The Solow growth accounting equation allows us to identify determinants of growth of TFP
1
0

Which of the following events will NOT raise potential real GDP of a country?
A fall
An in the in
increase unemployment
the fraction ofrate.
population attaining tertiary education
training.
An increase in exports.
An increase in the capital stock.

Quiz 6
Since reserves requirement is abolished in the US, the demand for reserves of the US banks is now zer
1
0

Sea shells can serve as money if

people like to use them for making ornaments.
they are easy to find.
they do not change forms over time.
they are generally accepted as a means of payment for goods and services.

Which of the following best explains why banks cannot create unlimited amount of loans and deposits
There are money lenders around.
The public is willing to use bank deposits for financing transactions.
The public
There are a would
limitedlike to useofcredit
number cardsborrowers
potential for payments.
who have good credit risk
profile.

Suppose
Firms wereyou read
on net that loans
repaying the money supply
rather than gettingM1
newdecreased in the last quarter. Which of the following stat
loans from the
banks.
Customers had been on net depositing cash into checking accounts in the
banking system.
Banks were selling bonds to each other.
Investors were borrowing from the banks to invest in stocks.

Which of the following transactions will increase money supply M1?

A bank buys
Charlie a bond
pays back hisfrom
bankthe central
a loan bank. with a check drawn on another
of €1000
bank.
Auchan asks its supplier of milk products for a 30 days trade credit.
Anne asks for a loan from her bank to buy a car.

Banks cannot create money if households and firms do not want to hold bank deposits and instead pr
1
0

Which of the following statements is NOT true concerning M1 or monetary base in US?
Monetary
M1 moneybase consists
supply of cash
consists in circulation
of checkable and and
deposits commercial bankbank
commercial reserves.
reserves.
M1 money supply consists of cash in circulation, checkable deposits and
saving deposits
Monetary base consists of cash in circulation, cash in vaults and deposit
balance of commercial banks with the central bank.

Which of the following actions taken by a bank will increase its reserves?
Reduce the interest paid on deposits.
Give a loan to a customer.
Sell bonds to the central bank.
Lend to other banks.
apore. Which of the following statements is true regarding this transaction?

re category of GDP for France?

ategory of GDP?

y’s citizens in a given time period.

on the rural households consumption patterns.
er than the prices you paid.
nflation rate.
he the statistical office.

Peaches
Quantity Price Quantity
200 1 100
180 1,5 150
 Peaches
Quantity Price Quantity
100 1,5 100
120 2 130

ead to a change in consumption expenditure but no change in the GDP of France?

a short period of time (less than 1 year).

. Which of the following statements is most likely to be true?

om 5% due to shocks that hit Freedonia

his means that

for France?

te demand shock for Mexico?

oods companies like General Electric now since

ovides an explanation of why the economy's GDP is likely to fall?

he economy.

abor productivity (real GDP per worker) than its European peers?
 measured by real GDP per hour worked)?

orked) as long as TFP growth is positive.

wer than that of the US?

growth of TFP

the US banks is now zero.

unt of loans and deposits?

hich of the following statements is most likely to be true?

deposits and instead prefer to use only cash for transactions.

Quiz 1
Which of the following activities is included in the investment expenditure category of GDP for France?
A FrenchFrance
Renault firm buys a newcar
imported machine
enginesfrom
fromJapan.
Poland
to be
An used in its
individual car assembly
bought a 10 yearplant
old in France.
house in
France.
A German firm located in France exports
machines to Germany.
Which of the following statements is true
regarding GDP?
Hide answer choices
It is the total
services wealthinof
produced the country.
a country in a given period
of time. by householdsin a country in a given
consumed
period subsidies
minus of time. to production in a country in a
given period of time
the consumption expenditure category of
GDP?
You found a €10 bill on the floor.
You invited
You bought an old car
a friend to from
see aamovie
friend.at the movie
theater together.
You parents gave you €1000 on your birthday.

It is possbile that you experienced a higher rate of inflation compared to the national inflation rate because you consumed more food compared to the representative consumer and the prices of food has increased more than the national inflation rate.
1
0
prices and quantities are given by the following
table:

Apples Oranges
Price Quantity Price Quantity
2021 1 100 2 50
2022 2 120 3 70
The real GDP growth of the economy from
2021 to 2022 using 2021 as the base year is NOTE: For real GDP, keep price constant at base value
125%
30%
75%
28.60%
NOT included in government purchase of
goods and services G for France?
The French
The French government
government builds new roads.
buys textbooks (printed
in France)
The Frenchfor the schools.
government buys some furniture from
Sweden.
The French government gives every HEC student
a housing subsidy of €100.
€10,000 but contains €3,000 of imported
parts. The French GDP increases by
7 000
10 000
3 000
0
Which of the following events add €10 000 to
theFrench
A GDP to France?
firm produces and exports wine worth
€10000
The (with
French 100% localbought
government content) to US.worth of
€10000
masks
You from China.
bought a €10000 apartment built in 1970 in
France.
The French treasury issued/sold €10000 worth of
bonds.

Quiz
Which 2 of the following least likely coincides
with stylized
Economies gofacts on business
through phases ofcycles?
expansions and
contractions.
Business cycles involve fluctuations in many
macroeconomic variables.
Business cycles are periodic.
Business cycles are recurrent.
could be mis-measured? That is, the true CPI
inflation
The pricesrate is different
of imported from
goods arethe
notofficial rate.
taken into
account
inflationinrate
theisofficial CPI based
calculated measure.
upon a fixed
base year basket
Consumers of goods.
are buying some new products that do
not appear
quality in the and
of goods baseservices
year basket of goods.
but the official rate
failed to adjust adequately for quality changes.
real GDP of Freedonia was 5%. Which of the
following
Freedonia statements
would likelyisgrow
mostatlikely to be5%
less than true?
next
year.
Business
years werecycles
likelydotonot exist for Freedonia
be different from 5% due to
shocks that hit Freedonia
The output gap of Freedonia was 5%
short period of time (less than 1 year).

1
0
If nominal GDP growth is lower than real GDP growth, then inflation is positive.

1
0

Quiz 3
The Solow growth accounting equation aims to identify determinants of TFP growth.
1
0
Using the growth accounting framework,
which
If laborofand
thecapital
following
growstatements is true?
at 1% and productivity
is
If constant, output
labor, capital andgrows at 1%. grow at 1%,
productivity
output
If laborgrows at 3%.
and productivity (A) grow at 1% and
capital is constant,
If capital output grows
and productivity grow atat 1%
2%.and labor
is constant, output grows at 1%

High growth rates coming from high rate of capital accumulation are not sustainable in the very long run if TFP does not change because of diminishing returns to capital.
1
0

In general inventory investments are

acylical
procyclical and leading
counter-cyclical and leading
procyclical and coincidental
quarter the economy is most probably in which
part of the cycle?
In contraction, just before the trough.
In contraction, just after the peak.
In expansion, just after a trough.
In expansion, just before the peak
(contraction), it is better to invest in stocks like
Walmart
their stockor Carrefour
prices now since
are expected to fall less than the
market or may
their stock even
prices arerise in the to
expected future
fall more than
the markettend
investors in the future
to buy more stocks and less bonds
when anticipating a downturn
their stock prices are uncertain
Which of the following data series is least likely
to be a good leading indicator for France?
Inflation rate
Stock prices
Purchasing managers index.
imports
Oil price increase is a negative supply shock
because
consumers reduce their purchase of goods as good
prices increase
car owners finddue to high oiltoprices
it expensive use their car as
much as before
firms find it less profitable to produce the same
amount
governments try to keep energy increase
as before as input costs prices low using
subsidies

Quiz 4 of the following policies will most likely

Which
increase the TFP of a country?
Raising the age of retirement.
An increase in the tariffs on imports of steel.
Better control of corruption
An increase in unemployment benefits.
an increase in labor productivity (meaured by
real GDP per
An increase in hour worked)?
the average number of hours
worked by each worker.
An increase in the skill level of workers.
More efficient management practices.
Widespread adoption of AI technology.
decreased in the last quarter. Which of the
following statements is most likely to be true?
Banks were
Firms were on
selling bonds toloans
net repaying each other.
rather than
getting newhad
Customers loans from
been on the
net banks.
depositing cash into
checking accounts
Investors in the banking
were borrowing from thesystem.
banks to
invest in stocks.

Since reserves requirement is abolished in the US, the demand for reserves of the US banks is now zero.
1
0
Which of the following transactions will
increase money supply M1?
Anne asks
Auchan foritsa loan
asks fromofher
supplier milkbank to buyfor
products a car.
a 30
days trade credit.
A bank buys
Charlie a bond
pays back hisfrom
bankthe central
a loan bank. with a
of €1000
check drawn on another bank.

The Solow growth accounting equation aims to identify determinants of TFP growth.
1
0
Which of the following statements is NOT true
concerning
cash in vaultsM1
andordeposit
monetary baseofincommercial
balance US?
banks with the
M1 money central
supply bank.of cash in circulation,
consists
checkable
M1 moneydeposits and saving
supply consists deposits deposits
of checkable
and commercial
Monetary bank reserves.
base consists of cash in circulation and
commercial bank reserves.
Which of the following actions taken by a bank
will increase its reserves?
Sell bonds to the central bank.
Reduce the interest paid on deposits.
Give a loan to a customer.
Lend to other banks.