ECON 203 - INTRODUCTION TO MACROE CONOMICS Winter
COMMON FINAL EXAMINATION - VERSION 1 ACTUAL
QUESTIONS CHEAT SHEET SOLUTION CONCORDIA
UNIVERSITY
ECON 203 - INTRODUCTION TO MACROECONOMICS
Winter
Please, read all instructions carefully:
1. The exam consists of two parts:
(i) Part I: 50 multiple-choice questions (100 marks);
(ii) Part II: Choose 4 out of 5 long questions (100 marks).
2. Write your name, student ID and answers for the multiple-choice questions on the computer
scan-sheet with a pencil. Please, also write the version of the exam on the computer scan-
sheet. For Part II, write all your answers on this exam. Do not use additional booklets.
3. You are allowed to use a non-programmable calculator and a paper dictionary, provided that
they are approved by the invigilator(s). You may use either pen or pencil to provide your
answers for Part II.
4. You are not allowed to tear any pages out of this exam.
Grades:
Part I:
Part II:
Problem #1:
Problem #2:
Problem #3:
Problem #4:
Problem #5:
1
,Total:
2
, Part I: Multiple Choice Questions. Write your answers on the computer sheet in
PENCIL.(Total=100 marks)
1. Which of the following always correspond(s) to a fall in the short run output?
(a) The AS shifts right
(b) The resulting price level falls
(c) The AD shifts up
(d) None of the answers is correct
2. Suppose the multiplier is 2. The AE curve shifts down by 80 due to a fall in investment
confidence. What will happen to the AD curve?
(a) It will shift to the right by 160
(b) It will shift to the left by 160
(c) It will shift to the right by 80
(d) It will shift to the left by 80
3. The aggregate demand is derived from which of the following conditions?
(a) By examining how government policies affect spending patterns
(b) By examining how price changes affect interest rates and spending
(c) By summing all micro demand curves
(d) All of the answers are correct
4. The aggregate demand curve is:
(a) Horizontal when there is considerable unemployment in the economy
(b) Vertical if full employment exists
(c) Downward sloping because production costs decrease as real output increases
(d) Downward sloping because of the interest-rate, wealth, and foreign trade effects
5. Which of the following add(s) to a country’s capital stock?
(a) Net investment expenses
(b) Depreciation expenses
(c) A cut in sales taxes
(d) All of the answers are correct
6. Which of the following statements is INCORRECT?
(a) The value added measurement of GDP describes the demand side of the economy
(b) The output measurement of GDP describes the supply side of the economy
3
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