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Midterm 2 with Solutions Econ311

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Midterm 2 with Solutions Econ311
Intermediate Macroeconomics 311 (Professor Gordon)
Final Examination Fall, 2009

YOUR NAME:________________________________

INSTRUCTIONS
1. The exam lasts 2 hours.
2. The exam is worth 120 points in total: 30 points for the multiple choice questions, 60 points for the analytical questions, and 30 points for the essays.
3. Write your answers to Part A (the multiple choice section) in the blanks on page 1. You won’t get credit for circled answers in the multiple choice section.
4. Place all of your answers for part B in the space provided.
5. You must show your work for part B questions.
6. Write your essays with a pen. Write clearly!
7. Good Luck and Happy Holidays!

PART A (45 points)

Choose the ONE alternative that BEST completes the statement or answers the question.
Your answers must be in the space provided below.
USE CAPITAL LETTERS.

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PART B (45 points)
Please show your work and write down the formulas you use for partial credit.

Question 1 (5 points)

(a) What monthly rate

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