Font size
WorksheetsMacroeconomics - Test 1
Total questions: 30
Worksheet time: 8hrs 30mins
What function of money is met, when you purchase a pair o shoes?
Medium of exchange
Unit of account
Storing value
Creation of money
Money, which value is related to gold or silver
is called comodity money.
is called fiat money.
has to be made from gold or silver.
can take a form of a paper bill
Suppose, the reserve ratio equals rr=4% . What is the money multiplier?
104%
20
25
4
Inflation
measures the percentage change of prices
measures the percentage change of GDP
depends on the growth of money supply
can be computed as π=PΔP
Suppose, the velocity of money is constant, the money supply increases by 6% and GDP grows by 2%. What is the predicted level of inflation?
2%
4%
6%
8%
In Schengen Area there are
only EU countries
some EU countries
all EU countries
some countries form outside EU
Net export (NX)
is the level of export minus duties
NX=Im−Ex
NX=S−I
depends on the real exchange rate
Suppose, in a small open economy, a governement rises the budget deficit and hence leads to a fall of the level of savings, S. Then
the domesting interest rate increases
the net export falls
the real exchange rate rises
the level of investments falls
Due to the financial crises, the international interest rate rises. As a result, in a small open economy
the domestic interest rises
the level of investment increases
the net export increases
the real exchange rate falls
Suppose, the nominal interest rate is 0.25 EURO/PLN. You want to sell goods worth 8000PLN. How much are they worth in Germany (in EURO)?
1000 EURO
2000 EURO
8000 EURO
32000 EURO
Real exchange rate is
the relative price of domestic goods in terms of foreign goods
a price of a currency in terms of another currency
used to exchange currencies
Suppose, the real interest rate increases by 4%, the domestic inflation is 4% and the foreign inflation is 2%. How much will the nominal exchange rate change?
1%
2%
6%
8%
The assumption that prices are sticky means that prices
have to be attached to products
do not change in a short run
follow movements of demand and supply
Suppose, the central bank decides to increase the money supply, M. According to the AD/AS model, it will result in
a rise of production in the short run
a rise of production in the long run
a rise of prices in the short run
a rise of prices in the long run
In AD/AS model, a fall of oil prices
is a demand shock
is a supply shock
results in a rise of output in the short run
results in a rise of output in the long run
In a closed economy, an interest rate
is a market price of borrowed money
does not impact the market of goods and services
impacts the level of investments
adjusts to equilibrate the loanable funds market
Which of the following possitions has the largest share in a GDP in Poland?
personal consumption expediture
gros privete domestic investments
government expenditure
net export
Suppose the Marginal Propensity to Consume (MPC) equals 75%. If the income, Y, rises by 100 and at the same time taxes, T, increase by 20 then the consumption changes by
100
80
75
60
Suppose, the nominal interest rate is 4% and the inflation increases from 1% to 3%. Then
the real interest rate falls.
a new real interest rate equals 1%.
the level of investments increases.
the level of consumption falls.
Suppose in a closed economy, the MPC=75%. If the government expenditures increase by ΔG=100 then
public savings rises by 100.
private savings does not change.
national savings falls by 100.
equilibrium real interest rate rises.
Suppose, the government expenditures falls by 100. The Marginal Propensity to Consume (MPC) in the economy equals 50%. According to the Keyensian cross model,
planed expenditures moves downward
total output falls by 100.
total output falls by 200.
total output falls by 50.
According to the Keyensian cross model, the government multiplier is
1−MPCMPC
larger than fiscal multiplier
increasing function of MPC
not smaller than 1
Suppose, MPC equals 75%. Then according to Keyensian cross model
the government expenditure multiplier is 4
the fiscal multiplier is 3
the government expenditure multiplier is 4/3
the fiscal multiplier is 4
Labor force is the number of people, who are
working
between 15 and 75 years old
active in the labor market
looking for a job
If a young worker decides to study and stops working then
she remains in the labor force
she becomes unemployed
she is not active in the labor market
she is neither working nor unemployed
Unemplyment rate
is the ratio of unemployed to the labor force
depends on the natural unemployment
depends on the business cycle
does not differ much between countries
Natural unemployment
equals 0, if the economy is in equilibrium
is a sum of frictional and structural unemployment.
changes very slowly, is almost constant
assumes that wages balance the labor market
Structural unemployment
results from inefficient labor market
is long lasting
is not affected by minimal wage
occures if wages are above the equilibrium level
Gross Domestic Product (GDP) in Poland is
value of final goods produced in Poland
value of all goods produced in Poland
sum of value added at all stages of production
value of final goods produced by Polish firms
Which sector has the largest share in polish GDP?
Services
Industry
Agriculture
Construction
