ECON 1100 Study Guide - Midterm Guide: Production Function, Nominal Interest Rate, Consumption Function
SchoolUniversity of Guelph
Course CodeECON 1100
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TEST TWO – VERSION 1
Wednesday, November 18 2015
9:30 - 10:20 a.m.
1. Use only a pencil on the computer card and be sure to fill in the circle completely. If you
change your mind, erase the circle completely.
2. There are 2 versions of the test. Version 1 is completed on a red scantron and
Version 2 is completed on a black scantron.
3. On the computer card PRINT your name and ID number.
4. Fill in the letters under you name and fill in the numbers under your ID number.
5. Hand in the computer card and the test paper.
6. There are 25 multiple choice questions and two (2) bonus questions for a total of
27 questions. One mark for each correct answer; zero marks for wrong, missing or double
7. You have 50 minutes to complete the test.
8. Read each question carefully.
9. Good Luck!!!
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ECON*1100 – Introductory Macroeconomics - Test 2 Version 1 - Fall 2015 2
1. How can inflation be measured?
By the change in the consumer price index
By the percentage change in the consumer price index
By the percentage change in the price of a specific commodity
By the change in the price of a specific commodity
2. When the price level falls, what happens to the number of dollars needed to buy a representative
basket of goods?
It increases, so the value of money rises
It increases, so the value of money falls
It decreases, so the value of money rises
It decreases, so the value of money falls
3. Refer to the Figure 11-1. What happens when the money supply curve shifts from MS1 to MS2?
The demand for goods and services decreases
The economy’s ability to produce goods and services increases
The equilibrium price level increases
The equilibrium value of money increases
4. Randy pays $120 for a bag of goods he purchases at the HyValu discount store. Which of the
following accurately identifies the types of variables involved?
The $120 is a real variable; the bag of groceries is a nominal variable
The $120 is a nominal variable; the bag of groceries is a real variable
Both the $120 and the bag of groceries are nominal variables
Both the $120 and the bag of groceries are real variables
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