MID - TERM TEST KTEE203.K60CLC.KDQT.

1
1. True, because state owned corporations impact directly on economic growth (one
of the main fields that macroeconomics study).
2. False, because the GDP deeflator of the base year is 100.
3. True, because when the price increases, both CPI and nominal GDP increases
while real GDP remains → GDP deflator increases
4. False, because: Mrs. Nam stays at home → no longer in the labour force → both
frictional umemployment rate and natural rate of unemployment decrease →
umemployment rate decreases.
5. False, because according to the Rule of 70, it will take 70/4 = 17.5 years to double,
therefore it will increase by 8 times after 17.5 x 3 = 52.5 years.
6. True, because according to the U.S. Department of the Treasury
(https://home.treasury.gov/?fbclid=IwAR2dd2cKvlFaF2h-
PnUKTgEMfmNEizlXqswwdHlfgrRMjIfOvkQjKEq_taQ), the interest rate of
US’s government bond with the period of 30 years is 45% while the interest rate of
Vietnam government bond with the period of 5 years is 57%.
7. False, because if the government increases its spending, it will start running a
budget deficit which decreases the supply of loanable funds → supply curve shifts
to the left (1) → raises the equilibrium interest rate (2) + reduces the equilibrium
quantity
Intere st of investment (3)
rate
AS2
AS1
(1)
(2)

AD

(3) Investment

8. True, because when interest rate decreases, people will tend to invest in goods and
services in stead of saving money (capital market). Therefore, the AD will shift to
the right (1) → at the new equilibrium the price level increases (2) + demanded
quanity increases (3) → more labors needed → unemployment rate decreases.
 Price level

AS
(1)

(2)

AD2
AD1

(3) Quantity of output

9. False, because increase in personal income tax → AD shifts left (1). Moreover,
increase in oil price → increase in input cost → AS shifts left (2). As a result, at
the Price level
new equilibrium, the output deffinitely decreases (3).

AD2 AD1 AS2

(1) AS1
(2)

(3) Quantity of output

10. True, because: governemt increases VAT → SRAS shifts to the left (1).
Government increases its spending → AD shifts to the right (2) → price level
increases (3)
Price level Long-run
aggreegate AS2
suppy

(1) Short-run aggreegate suppy

AS1

(3)

(2) AD2

AD1

Quantity of output