ECO2013 QUIZ V W2004 version2 sol

NAME: _________________________________

Student ID: __________________________

College of Business Administration
Department of Economics
Principles of Macroeconomics
O. Mikhail
ECO 2013 - 0008
Spring 2004

QUIZ V – Version 2
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This closed book QUIZ is worth 100 points.
The exam totals 45 Multiple-Choice questions.
Each Multiple-Choice question is worth 2.22 points.
Allocate your time accordingly.
Including the cover page, the exam totals 10 pages.
DO NOT forget to write your name and your student id on the exam booklet.
Non-Programmable calculators and language dictionaries are allowed.
At the end of the exam, hand-in the exam booklet and the computer sheet to the examiner.

April 14, 2004
4:35 p.m. – 5:40 p.m.
BA 2-210

ECO 2013 – Section 0008 – QUIZ IV – Version 1
O. Mikhail – http://www.bus.ucf.edu/omikhail

Multiple-Choice Questions (100 points)
Use the following to answer questions 1-2:

PAE
PAE=500+.9Y

1. Based on the Keynesian cross diagram, at short-run equilibrium output autonomous expenditure equals _____ and induced expenditure equals ______.
a) 500, 5000 b) 500, 5900 c) 5450, 5500 d) 5900, 6000 e) 500, 4500
2. Based on the Keynesian cross diagram, if output equals 4,000 planned aggregate expenditure is _____ output and firms will ____ production.
a) less than; decrease
d) greater than; increase
b) less than; increase
e) equal to; not change
c) greater than; decrease
3. In the long run, total spending only influences:
a) potential output.
d) actual output.
b) productive capacity.
e) labor supply and demand.
c) inflation.

Page 2 of 10

ECO 2013 – Section 0008 – QUIZ IV – Version 1
O. Mikhail – http://www.bus.ucf.edu/omikhail

4. A recession occurs when either _____ and/or _______.
a) potential output grows slowly; actual output rises above potential output
b) potential output grows rapidly; actual output rises above potential output.
c) potential output grows rapidly; actual output falls below potential output
d) potential output grows