ECO403 Final Term Past Paper 2010 Session 1

Rana Abubakar Khan

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JOIN FB GROUP FOR VU HELP · FINALTERM EXAMINATION · Spring 2010 · ECO403- Macroeconomics (Session - 1) · Ref No: 1378107 Time: 90 min Marks: 66 Student Info · StudentID: · Center: · OPKST · ExamDate: · 07 Aug 2010

Q1. Which (1 marks)

of

the following is TRUE about the measurement of Real Gross Domestic Product?

1. It is measured in the prices of a base year.
2. It is measured in current dollars.
3. It is measured at a constant output level but at current prices.
4. It is measured as the difference between the current year’s GDP and last year’s GDP.

Q2. Social security payments are examples of which of the following? (1 marks)

1. Services
2. Non-durable goods
3. Durable goods
4. Transfer payments

Q3. Which (1 marks)

of

the following would NOT be counted as a government purchase of a good or a service?

1. The purchase of a new stealth bomber.
2. Your grandmother's receipt of her monthly Social Security benefit.
3. The construction of a new dam by the U.S. Army Corps of Engineers.
4. The hiring of a new police officer by New York City.

Q4. Which (1 marks)

of

the following shows the slope of the consumption function?

1. The marginal propensity to consume.
2. The marginal propensity to save.
3. The autonomous consumption spending.
4. Marginal rate of substitution.

Q5. According (1 marks)

to

the Fisher effect, a higher inflation rate leads to which of the following?

1. Higher real money balances
2. A higher nominal interest rate
3. A higher real interest rate
4. All of the given options