ECO/302 Intermediate Macroeconomics Week 6 Quiz - Strayer

ECO 302 Week 6 Quiz - Strayer 

Chapter 8

 

TRUE/FALSE

 

            1.         Intertemporal substitution effects are substitution effects over time.

 

                                     

 

            2.         When the marginal product of labor increases due to a positive technology change, the real wage falls.

 

                                     

 

            3.         The model predicts that in response to a permanent positive change in technology real consumption will be procyclical.

 

                                     

 

            4.         An increase in the interest rate makes future consumption cheaper and future leisure more expensive.

 

                                     

 

            5.         The income effect on labor supply is positive.

 

                                     

 

            6.         A trend line for U.S. GDP since World War II is mostly flat.

 

                                     

 

            7.         In the equilibrium business cycle model, an improvement in the level of technology will increase the real wage rate.

 

                                     

 

            8.         In the equilibrium business cycle model, an improvement in the level of technology will decrease the interest rate.

 

                                     

 

            9.         In the equilibrium business cycle model, an improvement in the level of technology will decrease the interest rate.

 

                                     

 

            10.       The equilibrium business cycle model predicts that the real wage will be procyclical.

 

                                     

 

            11.       The equilibrium business cycle model predicts that the real rental price of capital will be procyclical.

 

                                     

 

            12.       The equilibrium business cycle model predicts that real investment will be countercyclical.

 

                                     

 

MULTIPLE CHOICE

 

            1.         The cyclical part of real GDP is

 

                                     

 

            2.         Real GDP equals:

           3.         An equilibrium business-cycle model:

            4.         An increase in the level of technology, A, causes:

            5.         The model predicts that an economic expansion caused by an increase in technology, A, will:

            6.         The model predicts that in a recession caused by an decrease in technology, A, we would observe:

            7.         If technology, A, increases, then:

            8.         The model predicts that if there is a technology, A, shock, the real rental price of capital will:

            9.         The model predicts that if there is a technology, A, shock, the interest rate, i, will be:

           10.       During an economic expansion due to an increase in technology, A, consumption will:

            11.       During an economic expansion due to an increase in technology, A, consumption will:

           12.       During an economic expansion due to an increase in technology, A, consumption will:

            13.       During an economic expansion due to an increase in technology, A, consumption will:

            14.       If technology, A, increases permanently then we would expect:

            15.       If there is a permanent increase in technology, A, then we expect consumption to:

            16.       If there were a permanent increase in technology, A, we would expect real saving to:

            17.       A variable that moves in the same direction as real GDP is known as:

            18.       A variable that has little tendency to move during a business cycle is known as:

           19.       A variable that moves in the opposite direction as real GDP is known as:

            20.       An acyclical variable is one that:

Chapter 9

 

TRUE/FALSE

 

            1.         When the capital utilization rate,  , is added to the model the interest rate becomes countercyclical.

 

                                     

 

            2.        

The higher the capital utilization rate, ,  the greater the depreciation rate of capital,  .

 

                                     

 

            3.         An increase in unemployment insurance payments decreases effective real income while unemployed.

 

                                     

 

            4.         The duration of unemployment is the number unemployed divided by the labor force.

 

                                     

 

            5.         Unemployment will exist in an market clearing model, if it takes some search time for workers to find jobs.

 

                                     

 

            6.         An increase in the technology level leads to an outward shift of the demand curve for capital services.

 

                                     

 

            7.         An increase in the technology level leads to an increase in the market-clearing real rental price of capital.

 

                                     

 

            8.         When a variable capital utilization rate is added to the Barro model, the model predicts that the capital utilization rate will be countercyclical.

 

                                     

 

            9.         GDP can rise when a decrease in technology leads to an increase in the capital utilization rate.

 

                                     

 

            10.       The natural rate of unemployment in an economy occurs when the job separation rate equals zero.

 

                                     

 

 

 

MULTIPLE CHOICE

 

            1.         The capital utilization rate is:

a.         the rate capital wears out in a particular period.        c.         the percentage of capital used in production.

b.         the depreciation rate. d.         all of the above.

 

 

                                     

 

            2.         When the capital utilization rate,  , increases then:

a.         GDP increases.           c.         (hours per period)•(number of machines) increases.

b.         machines are in use more hours per period.    d.         all of the above.

 

 

                                     

 

            3.         When the capital utilization rate,  , increases then:

a.         GDP decreases.           c.         (hours per period)•(number of machines) increases.

b.         machines are in use fewer hours per period.   d.         all of the above.

 

 

                                     

 

            4.         When the capital utilization rate,  , increases then:

a.         GDP decreases.           c.         (hours per period)•(number of machines) decreases.

b.         machines are in use more hours per period.    d.         all of the above.

 

 

                                     

 

            5.         When the capital utilization rate,  , increases then:

a.         GDP increases.           c.         (hour per period)•(number of machines) decreases.

b.         machines are in use fewer hours per period.   d.         all of the above.

 

 

 


  • Item #: 353

ECO 302 Week 6 Quiz - Strayer

Price: $9.00
* Marked fields are required.
Qty: *
Reviews (0) Write a Review
No Reviews. Write a Review