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ECO403 – Macroeconomics

In ECO403 Macroeconomics we have you covered with Digitized Past Papers From Fall of Mid Term and Final Term.

NOTE: Click on Preparation Tab to take the MCQ’s Tests.

ECO403 Fianl Term Paper                                        View     Download
ECO403__Final_Paper3                                           View     Download
ECO403_Final megafile solve quizzes                     View     Download
ECO403_final_term_2                                              View     Download
ECO403_final_term1                                                View     Download
ECO403_Mid_2007_Paper1                      View     Download
ECO403_Mid_2007_Paper2                      View     Download
ECO403_Mid_2007_Paper3                      View     Download



    Question No: 1 ( Marks: 1 ) – Please choose one
    The determinants of demand curve include:
    ► Income, tastes, and the price of the good. ► Income and tastes. ► Tastes and the price of other goods. ► Income, tastes, preferences and the price of other goods. Question No: 2 ( Marks: 1 ) – Please choose one
    Which of the following is TRUE about the measurement of nominal Gross
    Domestic Product?
    ► It is measured in current dollars. ► It is measured in fixed dollars. ► It is measured at a constant output level. ► It is measured as the difference between the current year’s GDP and last
    year’s GDP. Question No: 3 ( Marks: 1 ) – Please choose one
    Which of the following plays the most important role in increasing the rate of
    growth in real GDP per capita over time?
    ► Increases in labor productivity
    ► Increases in the money supply
    ► Decreases in the level of inflation
    ► Increases in the real rate of interest
    Question No: 4 ( Marks: 1 ) – Please choose one
    Refrigerators are examples of which of the following?
    ► Transfer products
    ► Non-durable goods
    ► Services
    ► Durable goods
    Question No: 5 ( Marks: 1 ) – Please choose one
    Which of the following is NOT a factor of production?
    ► Land
    ► Labor
    ► Capital
    ► Investment
    Question No: 6 ( Marks: 1 ) – Please choose one
    In a macroeconomic model without foreign trade or government spending, aggregate demand is the sum of:
    ► Personal saving and private investment. ► Personal saving and personal consumption. ► Personal consumption and personal income. ► Personal consumption and private investment. Question No: 7 ( Marks: 1 ) – Please choose one
    Which of the following appears in M2 but NOT in M1?
    ► Checking account balances
    ► Currency
    ► Travelers’ checks
    ► Money market mutual funds


    Question No: 23 ( Marks: 1 ) – Please choose one
    If a consumer faces a borrowing constraint then:
    ► He will be unable to consume anything in the second period. ► He may or may not be less satisfied than if he was able to borrow. ► Consumption in the first period must be less than consumption in the second
    period. ► All of the given options. Question No: 24 ( Marks: 1 ) – Please choose one
    According to Permanent Income hypothesis, when income < permanent income
    ► Average Propensity to Consume rises. ► Average Propensity to Consume falls. ► Average Propensity to Consume remains constant. ► Average Propensity to Consume first falls then rises.
    Question No: 41 ( Marks: 1 ) – Please choose one
    Suppose there is recession in the economy that is expected to be short in duration. The banking system, however, decides to curtail lending, so that the corporate
    sector faces binding financing constraints. This causes:
    ► Tobin's q and investment both to fall only slightly. ► Tobin's q and investment both to fall considerably. ► Tobin's q to go down considerably, while investment is only slightly affected. ► Tobin's q to be only slightly affected, while investment goes down
    considerably. Question No: 42 ( Marks: 1 ) – Please choose one
    Consider the following balance sheet of a bank:
    Assets Liabilities
    Reserves $1,000 Deposits $1,000
    This bank is obviously engaged in:
    ► Fractional reserve banking. ► 100-percent-reserve banking. ► Central banking. ► Financial intermediation. Question No: 43 ( Marks: 3 )
    Assume that the economy is at full employment level. The government decides to
    cut taxes to give the economy an extra boost. Describe the short run and long run
    impact of this tax cut in the IS-LM framework. (Describe theoretically, diagram is NOT required)
    Question No: 44 ( Marks: 3 )
    Discuss the basic idea behind the random walk theory of Robert Hall.
    Question No: 45 ( Marks: 3 )
    What is the main difference between 100% reserve banking system and fractional
    reserve banking system?
    Question No: 46 ( Marks: 5 )
    The sticky-wage model is based upon the assumption that nominal wages are
    designated by long-term contracts. If workers stopped signing long term contracts, how would this change the aggregate supply curve?
    Question No: 47 ( Marks: 5 )
    In 1979, budget deficit was $20 billion, government debt was $495 billion and
    inflation was 8%. By using this information, calculate by how much amount, the
    budget deficit was overstated? What is the amount of surplus budget deficit?
    Question No: 48 ( Marks: 5 )
    Suppose that monetary base (B)= $1000, the reserve deposit ratio (rr) = 0.5 and
    currency deposit ratio (cr) = 0.5. By using this information, CALCULATE:
    a) Money multiplier
    b) Total Money supply
    c) If monetary base increased to $1500, what will be the total money
    supply now?
    (Marks: 2+2+1)

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