macro economy exam

1. OX

( ) 1. The loanable market demand is demand.

( ) 2. An increase in the bond price decreases the bond yield.

( ) 3. An increase in the stock price increases the stock dividend yield.

( ) 4. Monopoly increases unemployment, but monopsony does not.

( ) 5. The open market operation is the changes in interest rate in open market.

( ) 6. The reserve requirement has an inverse relationship with money creation.

( ) 7. The money value and price level have no relationship.

( ) 8. The nominal interest rate is not related to inflation.

( ) 9. An inflation tax is the tax effect by inflation.

( ) 10. Government expenditure belongs to the aggregate supply.

( ) 11. 1973-1975 recession is due to aggregate supply shift.

( ) 12. 2001 recession is due to aggregate supply shift.

( ) 13. As potential GDP is smaller than actual GDP, recession occurs.

( ) 14. A money supply results in shift of aggregate demand GDP.

( ) 15. The multiplier effect has no relation with marginal propensity to consume.

( ) 16. The multiplier effect comes together with crowding effect.

( ) 17. A recession results in decrease of tax revenue.

( ) 18. A recession results in decrease of welfare program.

( ) 19. The unemployment and inflation are in inverse relation.

( ) 20. The unemployment and inflation relation does not related to aggregate demand.

( ) 21. A tariffs deceases import

( ) 22. A quotas decreases export.

( ) 23. A real exchange rate is not related to nominal exchange rate.

( ) 24. A flexible exchange rate is not related to nominal exchange rate.

( ) 25. A purchasing power parity exchange rate is not related to nominal exchange rate.

( ) 26. The export increases consumer surplus.

( ) 27. The trade deficit results in capital inflow.

2. Summarize

(1) loanable fund market

(2) monetary policy tools

(3) quantity equation

(4) Okun's law

(5) mutiplier effect and crowding effect

(6) automatic stabilizers

(7) risk aversion and risk taking

(8) Fisher effect

(9) aggregate model

(10) aggregate demand shift

(11) Phillips curve

(12) protectionist policies

(13) capital inflow and capital outflow