Exam (elaborations)
Exam questions 2021
- Course
- Ec140
- Institution
- Wilfrid Laurier University (WLU )
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4/21/2021 Quizzes - EC-140-A-B-C - Intro To Macroeconomics - Wilfrid Laurier UniversityQuiz Submissions - Copy of Test 1
Darren Ibrahim (username: dibrahim3)
Attempt 1
Written: Apr 20, 2021 11:20 PM - Apr 21, 2021 12:33 AM
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Your quiz has been submitted successfully.
Question 1 point
https://mylearningspace.wlu.ca/d2l/lms/quizzing/user/attempt/quiz_start_frame_auto.d2l?ou=373973&isprv=&drc=0&qi=116334&cfql=0&dnb=0&fromQB=0
,4/21/2021 Quizzes - EC-140-A-B-C - Intro To Macroeconomics - Wilfrid Laurier University
This slide is from the lectures. The LC notation is irrelevant. This is quarterly data on nominal and
real interest rates. Identify the correct statement
a) In 2020, real interest rates fell to their lowest level since 2017
b) Inflation or expected inflation was negative at some point in 2020
c) Real interest rates cannot be negative
d) Although Canada always has positive nominal interest rates, there are no countries in the world with
negative nominal interest rates
e) In 2020, the nominal rate of interest fell and inflation or expected inflation increased compared to 2019
Question 2 point
Consider the general form of the consumption function in a simple macro model. Once
government and taxes are included in the model with a taxes net of transfers function equal to
T = T0 + t Y and a consumption function equal to C = a + b Y D
Then one of the expressions below correctly expresses consumption as a function of output (also
called income)
a) C = a + (1 - t)YD
https://mylearningspace.wlu.ca/d2l/lms/quizzing/user/attempt/quiz_start_frame_auto.d2l?ou=373973&isprv=&drc=0&qi=116334&cfql=0&dnb=0&fromQB=0
,4/21/2021 Quizzes - EC-140-A-B-C - Intro To Macroeconomics - Wilfrid Laurier University
b) C = a – b T0 + b (1-t) Y
c) C = a + - b T0 + b ∙ t ∙YD
d) C = a + b(1 - t)YD
e) C = a + b Y
Question 3 point
Suppose aggregate output is demand determined. If the marginal propensity to spend is 0.71, and
the marginal propensity to consume is 0.20, and there is a recessionary gap of $40 billion dollars,
calculate the increase in real government spending on goods and service required to close the
recessionary gap expressed in billions of dollars rounded to the nearest decimal point
Answer:
32 (11.6)
Question 4 point
Consider the following model with government and foreign trade. The notation is standard.
All numbers are expressed in billions of dollars
C = 40 + 0.78 YD T = 15 + 0.37 Y G = 30 I = 50 X = 60 IM = 0.28 Y
The slope of the aggregate expenditure line is, expressed to the nearest two decimal places is
https://mylearningspace.wlu.ca/d2l/lms/quizzing/user/attempt/quiz_start_frame_auto.d2l?ou=373973&isprv=&drc=0&qi=116334&cfql=0&dnb=0&fromQB=0
, 4/21/2021 Quizzes - EC-140-A-B-C - Intro To Macroeconomics - Wilfrid Laurier University
Answer:
0.78 (0.21)
Question 5 point
The Labour Force Survey, describing Canadian labour markets in December 2020, was released on
January 8, 2021.
It reported the following data measured in thousands of persons:
Population over 31,297.7
Full-time employment 15,188.3
Part-time employment 3,364.7
Unemployment 1,755.8
The unemployment rate in December 2020 was
a) 5.6 percent
b) 8.6 percent
c) 10.3 percent
d) 0.06
e) .086 percent
https://mylearningspace.wlu.ca/d2l/lms/quizzing/user/attempt/quiz_start_frame_auto.d2l?ou=373973&isprv=&drc=0&qi=116334&cfql=0&dnb=0&fromQB=0
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