Exam (elaborations)
Macroeconomics 4th Australian Edition by Olivier Blanchard
- Course
- Institution
Test Bank For Macroeconomics 4th Australian Edition by Olivier Blanchard Complete Test Bank
[Show more]
Seller
Follow
ExamsExpert
Reviews received
Content preview
,ExamName___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) What are the two transmission channels that turned the US crisis into a global crisis? 1)
A) The exchange rate and consumption channels.
B) The trade and financial channels.
C) The financial and exchange rate channels.
D) The exchange rate and trade channels.
E) The consumption and trade channels.
Answer: B
Explanation: A)
B)
C)
D)
E)
2) What method do macroeconomists use to accurately correct for relative standard of living between 2)
two countries?
A) Interest power parity.
B) Purchasing power parity.
C) Output power parity.
D) Income power parity.
E) Expenditure power parity.
Answer: B
Explanation: A)
B)
C)
D)
E)
3) What is the main argument put forward by economists who are in favour of reducing the US 3)
budget deficit now and quickly?
A) The quick action instills credibility and helps to stabilise the interest rate.
B) The quick action instills credibility and helps to stabilise the bond rate.
C) The quick action instills credibility and helps to stabilise the level of debt.
D) The quick action instills credibility and helps to stabilise the current account.
E) The quick action instills credibility and helps to stabilise the exchange rate.
Answer: C
Explanation: A)
B)
C)
D)
E)
1
,4) What is the main reason for the persistently high unemployment in the US and the Euro area since 4)
the crisis?
A) Low consumption growth.
B) Low unemployment benefits.
C) Low output growth.
D) High output growth.
E) High consumption growth.
Answer: C
Explanation: A)
B)
C)
D)
E)
5) What was the Fed's policy response to lower consumption and falling firm investment? 5)
A) Having a press conference.
B) Cutting interest rates all the way down to zero.
C) Raising interest rates to 10%.
D) Staying put with the same interest rates.
E) None of the above.
Answer: B
Explanation: A)
B)
C)
D)
E)
6) What is the US share of world GDP in 2011? 6)
A) 22%. B) 21%. C) 18%. D) 19%. E) 20%.
Answer: D
Explanation: A)
B)
C)
D)
E)
7) In 2011, output per capita in Australia was approximately equal to: 7)
A) $53,500. B) $43,500. C) $73,500. D) $33,500. E) $63,400.
Answer: E
Explanation: A)
B)
C)
D)
E)
2
, 8) When comparing output per capita between China and the U.S.: 8)
A) The comparison is more accurate in Euro.
B) The comparison is most accurate in U.S. dollars.
C) The comparison is more accurate in Australian dollars.
D) The comparison is more accurate when the PPP method is used.
E) The comparison is most accurate in Chinese yuan.
Answer: D
Explanation: A)
B)
C)
D)
E)
9) Which of the following is an economic cost of having a common currency? 9)
A) Loss of independence in setting an independent fiscal policy.
B) Loss of independence in setting an independent exchange rate policy.
C) Loss of independence in setting an independent monetary policy.
D) All of the above.
E) None of the above.
Answer: C
Explanation: A)
B)
C)
D)
E)
10) Which basic variable do macroeconomists focus on about the health of an economy? 10)
A) Unemployment.
B) Inflation.
C) Output growth.
D) All of the above.
E) None of the above.
Answer: D
Explanation: A)
B)
C)
D)
E)
11) What is the central bank in the US formally known as? 11)
A) The Bureau of Monetary Policy.
B) The Federal Reserve Board.
C) The Federal Bureau of Reserve.
D) The Federal Monetary Board.
E) The Federal Policy Board.
Answer: B
Explanation: A)
B)
C)
D)
E)
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $32.29. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73773 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now