Question 1

Since 1999, in the Eurozone:

Accepted Answer

A) real gross private investment has varied more than real GDP, while real consumer expenditure has varied less than real GDP. 
B) real gross private investment and real consumer expenditure have varied more than real GDP. 
C) real gross private investment has varied less than real GDP, while real consumer expenditure has varied more than real GDP. 
D) real gross private investment and real consumer expenditure have varied less than real GDP. 
A) real gross private investment has varied more than real GDP, while real consumer expenditure has varied less than real GDP. 
B) real gross private investment and real consumer expenditure have varied more than real GDP. 
C) real gross private investment has varied less than real GDP, while real consumer expenditure has varied more than real GDP. 
D) real gross private investment and real consumer expenditure have varied less than real GDP.

Question 2

The measure of labour productivity used in the popular media is:

Accepted Answer

A) Y/L 
B) average product of labour. 
C) procyclical. 
D) all of the above. 
A) Y/L 
B) average product of labour. 
C) procyclical. 
D) all of the above.

Question 3

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

Accepted Answer

A) relatively high during an economic expansion or a recession. 
B) relatively low during an economic expansion or a recession. 
C) relatively high during an economic expansion and relatively low during a recession. 
D) relatively low during an economic expansion and relatively high during a recession. 
A) relatively high during an economic expansion or a recession. 
B) relatively low during an economic expansion or a recession. 
C) relatively high during an economic expansion and relatively low during a recession. 
D) relatively low during an economic expansion and relatively high during a recession.

Question 4

We expect that an increase in real wages will:

Accepted Answer

A) increase labour supply, if temporary. 
B) increase labour supply, if permanent. 
C) increase labour supply, whether permanent or temporary. 
D) reduce labour supply, whether permanent or temporary. 
A) increase labour supply, if temporary. 
B) increase labour supply, if permanent. 
C) increase labour supply, whether permanent or temporary. 
D) reduce labour supply, whether permanent or temporary.

Question 5

A higher interest rate makes:

Accepted Answer

A) current consumption and future leisure more expensive. 
B) current consumption cheaper and future. leisure more expensive. 
C) current consumption and future leisure cheaper. 
D) current consumption more expensive and future leisure cheaper. 
A) current consumption and future leisure more expensive. 
B) current consumption cheaper and future. leisure more expensive. 
C) current consumption and future leisure cheaper. 
D) current consumption more expensive and future leisure cheaper.

Question 6

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

Accepted Answer

A) tend to fall due to the income effect. 
B) may rise or fall depending on whether the income effect is greater than the substitution effect or not. 
C) tend to rise due to the intertemporal substitution effect of the interest rate rising. 
D) all of the above. 
A) tend to fall due to the income effect. 
B) may rise or fall depending on whether the income effect is greater than the substitution effect or not. 
C) tend to rise due to the intertemporal substitution effect of the interest rate rising. 
D) all of the above.

Question 7

What happens in the model, if a temporary technology change increase real wages temporarily?

Accepted Answer

A temporary higher real wage makes futur

Question 8

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

Accepted Answer

A) acyclical. 
B) procyclical. 
C) countercyclical. 
D) exogenous. 
A) acyclical. 
B) procyclical. 
C) countercyclical. 
D) exogenous.

Question 9

The income effect on labour supply is positive.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) tend to fall due to the income effect. 
B) be unchanged. 
C) tend to fall due to the intertemporal substitution effect of the interest rate rising. 
D) tend to fluctuate. 
A) tend to fall due to the income effect. 
B) be unchanged. 
C) tend to fall due to the intertemporal substitution effect of the interest rate rising. 
D) tend to fluctuate.

Question 11

Intertemporal substitution effects motivate households to:

Accepted Answer

A) supply more labour when the wage rate is temporarily low. 
B) supply more labour when the wage rate is permanently low. 
C) supply less labour when the wage rate is temporarily low. 
A) supply more labour when the wage rate is temporarily low. 
B) supply more labour when the wage rate is permanently low. 
C) supply less labour when the wage rate is temporarily low.

Question 12

A higher interest rate makes:

Accepted Answer

A) future consumption and leisure more expensive. 
B) future consumption cheaper and future leisure more expensive. 
C) future consumption and leisure cheaper. 
D) future consumption more expensive and future leisure cheaper. 
A) future consumption and leisure more expensive. 
B) future consumption cheaper and future leisure more expensive. 
C) future consumption and leisure cheaper. 
D) future consumption more expensive and future leisure cheaper.

Question 13

An example of a temporary change in technology would be:

Accepted Answer

A) a new discovery. 
B) a new invention. 
C) a harvest failure. 
D) all of the above. 
A) a new discovery. 
B) a new invention. 
C) a harvest failure. 
D) all of the above.

Question 14

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

Accepted Answer

A) increase as the increase in real consumption is less than real GDP. 
B) increase as the increase in real consumption is more than real GDP. 
C) decrease as the increase in real consumption is more than real GDP. 
D) decrease as the increase in real consumption is less than real GDP. 
A) increase as the increase in real consumption is less than real GDP. 
B) increase as the increase in real consumption is more than real GDP. 
C) decrease as the increase in real consumption is more than real GDP. 
D) decrease as the increase in real consumption is less than real GDP.

Question 15

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

Accepted Answer

A) drive down the real wage. 
B) cause labour supply to be greater than labour demand. 
C) drive up the real wage. 
D) lead to a relatively low real wage. 
A) drive down the real wage. 
B) cause labour supply to be greater than labour demand. 
C) drive up the real wage. 
D) lead to a relatively low real wage.

Question 16

What is the relationship between real GDP and the cyclical part of GDP?

Accepted Answer

Real GDP is trend real GDP plu

Question 17

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

Accepted Answer

A) a relatively low real wage. 
B) an excess demand for labour. 
C) a relatively high real wage. 
D) an increase in the MPL 
A) a relatively low real wage. 
B) an excess demand for labour. 
C) a relatively high real wage. 
D) an increase in the MPL

Question 18

An procyclical variable is one that:

Accepted Answer

A) moves the same direction as real GDP. 
B) has little tendency to move during a business cycle. 
C) moves the opposite direction as real GDP. 
D) determined outside the model. 
A) moves the same direction as real GDP. 
B) has little tendency to move during a business cycle. 
C) moves the opposite direction as real GDP. 
D) determined outside the model.

Question 19

What does the model predict about investment when technology increases and why and what do the data show about investment in the US?

Accepted Answer

An increase in technology, A, causes the

Question 20

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

Accepted Answer

A) acyclical. 
B) procyclical. 
C) countercyclical. 
D) exogenous. 
A) acyclical. 
B) procyclical. 
C) countercyclical. 
D) exogenous.

Since 1999, in the Eurozone:

The measure of labour productivity used in the popular media is:

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

We expect that an increase in real wages will:

A higher interest rate makes:

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

What happens in the model, if a temporary technology change increase real wages temporarily?

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

The income effect on labour supply is positive.

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

Intertemporal substitution effects motivate households to:

A higher interest rate makes:

An example of a temporary change in technology would be:

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

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

What is the relationship between real GDP and the cyclical part of GDP?

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

An procyclical variable is one that:

What does the model predict about investment when technology increases and why and what do the data show about investment in the US?

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

Thinking About Macroeconomics

National-Income Accounting: Gross Domestic Product and the Price Level

Introduction to Economic Growth

Working With the Solow Growth Model

Conditional Convergence and Long-Run Economic Growth

Macroeconomics Without Microeconomic Foundations

Markets, Prices, Supply, and Demand

Consumption, Saving, and Investment

Capital Utilization and Unemployment

The Demand for Money and the Price Level

Inflation, Money Growth, and Interest Rates

Government Expenditure

Taxes

Public Debt

Money and Business Cycles I: the Price-Misperceptions Model

Money and Business Cycles Ii: Sticky Prices and Nominal Wage Rates

World Markets in Goods and Credit

Exchange Rates

Filters

Exam 9: An Equilibrium Business-Cycle Model

Since 1999, in the Eurozone:

The measure of labour productivity used in the popular media is:

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

We expect that an increase in real wages will:

A higher interest rate makes:

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

What happens in the model, if a temporary technology change increase real wages temporarily?

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

The income effect on labour supply is positive.

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

Intertemporal substitution effects motivate households to:

A higher interest rate makes:

An example of a temporary change in technology would be:

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

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

What is the relationship between real GDP and the cyclical part of GDP?

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

An procyclical variable is one that:

What does the model predict about investment when technology increases and why and what do the data show about investment in the US?

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

Thinking About Macroeconomics

National-Income Accounting: Gross Domestic Product and the Price Level

Introduction to Economic Growth

Working With the Solow Growth Model

Conditional Convergence and Long-Run Economic Growth

Macroeconomics Without Microeconomic Foundations

Markets, Prices, Supply, and Demand

Consumption, Saving, and Investment

Capital Utilization and Unemployment

The Demand for Money and the Price Level

Inflation, Money Growth, and Interest Rates

Government Expenditure

Taxes

Public Debt

Money and Business Cycles I: the Price-Misperceptions Model

Money and Business Cycles Ii: Sticky Prices and Nominal Wage Rates

World Markets in Goods and Credit

Exchange Rates

Filters