ECON 1120 Midterm: Econ 1120_2012Fall_prelim1_regularversion with Solution
Document Summary
Econ 1120 intro macro fall-2012 october 4, 2012. There are two sections in this exam: part i: 15 multiple choice questions @ 3 points each, part ii: 3 short answer question (22 points) + 2 newspaper article questions (33 points, answer all questions. Total time = 90 minutes: prelim1 score weights 25% of final grade, please number each exam book from 1 to 6 and write your id, name and section ta on the front page of each book. Part i: multiple choice: suppose the supply of bananas is inelastic. That means that: the unemployment rate is 0, there is some structural unemployment, none of the above. If inflation happens, the consumer price index somewhat understates changes in the cost of living: a consumer"s saving increased from to when his income increased from to. This transaction will: increase m1, decrease m1 and increase m2, increase both m1 and m2, decrease m1 but cause no changes to m2.
