Intermediate Macroeconomic Theory II
First Take-Home Midterm Examination
代考中级宏观经济理论 Instructions 1. There are two pages of the exam. 2. You have 50 minutes to complete the exam. 3. There are 100 points in total for the exam.
- There are two pages of the exam.
- You have 50 minutes to complete the exam.
- There are 100 points in total for the exam. Answer all of them.
- There will be no communication of any formwith your teaching assistants orme during the examination period. If you believe a question contains an error or an ambiguity, say so on your answer sheets; then make an attempt to correct the alleged error or to resolve the ambiguity, and answer the question as well as you can.
- On the first page of your answer sheets, please (i) print your full name and student ID number; and (ii) write down the following statement on academic integrity: “I [your full name] hereby certify that the answers below are prepared solely by me, without any assistance or consultation from someone else. [your signature]” Please note that 5 points will be deducted if you do not write down the above statement.
- Start answering the exam questions on page 2 of your answer sheets.
- Please put a page number sequentially at the bottom of each page, including thecover page.
- Please make sure that your answers are legible; and underline the keywords in youranswers.
- Please use CamScanner or another app to covert your answer sheets, in the correctorder per the page numbers, into a single pdffile under the name of “LAST FIRST ID.pdf”. This will be the only format that will be accepted for grading.
1.[40 points] Suppose an economy’s real GDP was $1,000 in 2019 Moreover, theinflation rate was 100% and the growth rate of real GDP was 10% between 2019 and2020. Using 2020 as the base year, what are the values of this economy’s (a) real GDP in 2020, (b) GDP price index in 2019, (c) nominal GDP in 2019, and (d) nominal GDP in 2020? Show your work.
(a) [10 points] In an open economy, if GDP = $1,000, government expenditure = $250, consumption = $500, net exports = $100 and the budget deficit = $40, what is the value of disposal income? Show your work.
(b) [10 points] In an open economy, if GDP = $500, consumption = $350, transfer – taxes = $20, investment = $150 and the budget deficit = $120, what is the value of net exports? Show your work.
(a) [10 points] What is precisely meant by a macroeconomic time series being “procyclical”?
(b) [10 points] Give two examples of procyclical variables in the U.S. economy over the last hundred years.
(c) [10 oints] Explain in words what the correlation coefficient between two different variables measure?
(d) [10 points] Use the concept of the correlation coefficient to precisely define what is meant by a macroeconomic time series being “persistent” over the business cycle?