ECON482 Midterm: ECON 482 UofA E482Midterm 09F
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You have 50 minutes to do this exam. The number in brackets next to each question indicates the maximum number of marks that can be earned on that question. There are 100 marks in total (two marks per minute). No notes or other material (including all types of electronic devices) may be consulted during the exam. In a famous paper, campbell and mankiw (qje, nov 1987) write: According to the conventional view of the business cycle, fluctuations in output represent temporary deviations from trend. If fluctuations in output are dominated by temporary deviations from the natural rate of output, then an unexpected change in output today should not substantially change one"s forecast of output in . five or ten years. Our examination of quarterly postwar united states data leads us to be skeptical about this implication. The data suggest that an unexpected change in real gnp of 1 percent should change one"s forecast by .
