Multiple Choices: #2-11

2. 'Which of the following contributes to US GDP in 2021 a] UC Davis constructs a nevi.T lecture hall in 2021 and that will become operational in Fall 2021 b) $1400 stimulus checks sent by the Federal Government under the American Rescue Plan c] Federal transfers to state governments under the American Rescue Plan d] None of the above 3. Consider the variables any. Assume that the growth rates of these variables are given by 9(3) = 0.04, and y] = 0.1. Then the growth rate of the variable 2 = (1%) is approximately equal to a] 0.05 b) -0.06 c) 0.4 d) 43.4 4. Consider an economy that produces two different types of goods: apples and oranges. Assume that apple production rises 3% in 2013 (relative to 2312] and orange production rises 4% in 2013. Which of the following statements is TRUE? a] Nominal GDP growth is positive h) Real GDP growth is less than 3% c] Real GDP growth is between 3% and 4% d] Nominal GDP growth is zero. 5. Consider a production model with labor and capital inputs. There are constant returns to scale overall. If MPK 1::- r > [I and MPL > w > D, the rm: a] should hire less labor h) should hire more capital until MPK = 0 c] should get rid of some capital until MPK = r d] should hire more capital until MPK = r." e) has the optimal amount of labor. 6. Which of the following statements about the role of institutions in economic growth is TRUE. a) Higher expropriation risk due to low-quality governance and poor institutions might account for low levels of human and public capital in poor nations 1)] The quality of institutions in countries colonized by Europeans is not correlated with Whether climate/{disease allowed European settlers to live in those areas c) Low-quality institutions make it easy to protect property rights and enforce contracts d) All of them are lilalse 7. In the Homer model, the less labor you dedicate to generating ideas, the a.) faster you accumulate knowledge but at a loss to current output in the consump- tion sector. 13] faster you accumulate knowledge but with a gain to current output in the consumption sector. c] slower you accumulate knowledge but with a gain to current output in the consump- tion sector. d) none of these are correct 8. Unemployment rate is dened as: a.) fraction of labor force who are not employed h] fraction of population who are not employed c] fraction of people who are retired d] fraction of population who are out of labor force 9. 'Which of the following was a macroeconomic policy response to the Great Recession? a] The Aordable Care Act b) Ever}r Student Succeeds Act c] Millennium Development Goals d] Food stamps e) American Recovery and Reinvestment Act 10. Which of the following is NOT an ingredient of the aggregate demand;' aggregate supply);r model developed in class? a) IS curve 13] MP curve c] Phillips\" curve d] Frictional unemployment 11. Suppose that over the long-run, the growth rate in the money supply is 3% per year. Real GDP grows at 4% per year. If the growth rate of velocity of money is 1%, what is the inflation rate in the long-run? a) 1% deflation rate b) 1% inflation rate c) 0% inflation rate d) 8% inflation rate e) None of the above are correct