Infrastructure ASS FINAL EXAMINATION JUNE SEMESTER 2018 MACROECONOMICS (ECON 1301D) (TIME : 2 HOURS) MATRIC NO. IC. /PASSPORT NO. + LECTURER : MOHD AZHAR HAMZAH (GENERAL INSTRUCTIONS |. This qusion booklet consists of 12 printed pages including this page, 2, Arewer ALL questions nthe QUESTION PAPER. Page of 12INSTRUCTIONS: Tie: 2 wouRS SECTION A GoMARKS) ‘There are THIRTY (30) questions in this section, Answer ALL Questions in the (Question Paper. 1 {s the sum of various sectoral demands for current output of the economy, A. Agaregate Demand . Aggregate Expenditure BB. Aggregate Supply D. Aggregate Output 2. The aggregate supply schedule gives a curve where pice and output levels are related. A. negatively ©. positively B. inversely D. indirely 3, Short-run agaregate curve slope A. downward . horizontal B, negative . upward 4. A surplus budget oocurs when the governments total revenue is its total expen, A. equals . ess than B. more than . None ofthe above 5A ‘ax is tax rte which goes on increasing with income A. proportional C. regressive B, progressive D. automotive BCONTSOTD Funez078 a Pagezofia6, The Instruments used in are the increasing of taxes and the eduction of| ‘government spending, A. contrationary monetary policies B. expansionary fiscal poic . expansionary monetary policies D. coniractionary fiscal polices 7. The effect of expansionary monetary policy is ‘A. an increase in interest rate B. a decrease in interest ato C. an increase in government expenditure D. adecrease in government expenditure 8 Inthe above figure, the distanes between points S and T represents ‘A.an expansion. C.apeak. Batrough D. a recession 9, Am economic expansion rather than a recession occurs, ‘A. when the federal Budgets balanced 18 hen the unemployment rat alls below 5 percent Chen growth in eal GDP is postive. . when the unemployment rates filling. ‘ROONTOTDume2018 ge SP10, The labor force is defined a the numberof. A. poople 16 and over BB, unemployed people. CC: people with jobs, both par-time and fll-time. . people who are employed and unemployed. 11, Which ofthe fotlowing best fis the definition of unemployed? A. retired and not working working less than a fll work week CC not working but fooking for ajo . not working and not looking for work 12 Using the definition of unemployment, which of the following individuals would be ‘unemployed? [A.A flltime student quits school, enters the labor market forthe fis time, and ‘searches for employment. 'B, Because ofthe increase level of automobile impors, an employee of General ‘Motori aid off but expects tobe called back to work soon, Because of reduction in the military budge, your next door neighbor Loses her job ina plant where nuclear warheads are made and must look for a new job: 1D. All ofthese individuals are unemployed. 13, An increase in the price level is defined as A. arecession, inflation, Ba growth boom. D. an expansion. 14, Ifthe inflation rate is negative the price level in an cconomy is, A falling. . constant, B. rising slowly. D.rsing rapidly, 15. Cost push inflation refers to an inerease inthe ‘A. general price level CC. money supply 1B aggregate demand 1D. money demand ECONISOIDUne2018 Page 4 of 216. The funtion of money are: ‘A. medium of exchange and the ability to buy goods and services, 'B medium of exchange, unit of account, and means of payment. : pricing. contracts, and means of payment. _. medium ofexchange, unit of account, and store of value. 17, Which isthe first step in constructing CPI? ‘A. Selecting base year . Selecting prices of goods B. Selecting CPI basket D, Selecting weightage 18. MI equals to: ‘A. cureney + checkable depsits currency + saving deposit B.M2+ curreney D. saving deposit + M2. 19, Which of the following is wot an example of Commercial Banks in Malaysia? ‘A. Maybank C. Bank Simpanan Nasional BL RHB Bank D. CIMB bank 20, Malaysia's central bank is formally called the ‘A Central Bank of Malaysia. Open Market Commitee. BB. Bank Negara Malaysia. Bank Malaysia 21. Accepting deposits from individuals and firms and providing tothe public are the basic “ietion of: ‘A. Commercial banks (Merchant banks Cental Banks D_ Discount houses 22, Americans demand Japanese yen in order to ‘A. buy Japanese products. B. supply American goods in Japanese markets CC. allow te Japanese to buy U.S. products. balance the eurent account, ECONTSOIDne2018 Page Sof23, A decrease inte value ofa currency in tems of other curencis is known as a par value Da gold point. 24, A fallin the US. exchange rte will. A. increase the quantity of dollars demanded. 1B. decrease the quantity of dollars demanded CC. increase the demand for dollars D. decrease the demand for dollars. 25, Goods and services that we buy from people in other countries are alld out A. balance of payments import. B. exports. D-terms af trade, 26, A trian ‘A. the government by decreasing is revenue. '. domestic producers who ean compete with cheaper imports CC. consumers who will pay more forthe imported good. D. Alf the above ansiers are correct of the following statements is true? ‘A. The long-run aggresate supply curve is upward slop B. The long-run aggregate demand curve is upward sloping. ©. The short-run aggregate supply curve is vertical 1D. The long-run aggregate supply curve is vertical 28, Which international account i used to rocord payments for import, receipts from exports, net intrest paid abroad and net transfers? ‘A. The capital account B. The curent account C.The official sestlements account . The trade aceount ECONTSOIDume2OIB—— Page oF 2Be a Nalin 80-0 8 29, The figore illustrates aggregate demand and aggregate supply in Sparta, Which of the following events will decrease Sparta’ real GDP inthe shor run? ALA decrease in taxes BA fallin resource prices (CA decrease in government expenditure 1D. An increase in investment 30. A country records its nterational finance accounts in its ‘A. trade payments accounts. B. importexport log accounts. C.balance of payments accounts. _D. net experts payments ECONTSOID Tie D018 Page Tof2Answers for Multiple Choice Questions: iz) nln fn on fos fel ‘Answer 19 20, 2 22 23 24 25, 26 a 8 29, 30. ‘ECONTSO1Dune2078 Page oFSECTION B (60 MARKS) ‘There are THREE (8) questions in ths section. Answer ALL questions inthe Question Paper. ‘Qusstion 1 20 marks) 1) Fill in the banks. (marks) Has the dollar appreciate or depreciate 109 yen = $1 to 189 yen=$1 10 pesos = $1 to 8 pesos= $1 [RM3-USSI to RM2= USL State TWO @) advantages and TWO (2) disadvantages of international trade. (4 marks) BCONTSOTDTime2018 Page Sofi«) The data in the folowing table i the balance of payments fora country. Complete the {able below by finding the answers fora b,c, and e (10 maris) Hem USS (Miltions) ‘Trade Export 13780 ‘Trade Import, » ‘trade balance 12450 Service exports 2uas Service imports 9x7 Balance of services » "Net investment income 224 Balance on goods and services 9 [Net transfer payments ery Balance on eurent account ® Foreign assent in county 2345 ‘Country's assets abroad Sasa Emors and omissions 3 Capital account balance 9 ECONTSO1DTune2018 Page 10 oft‘Question 2 (14 marks) Refer to the table below and answer the following questions. ‘Goods ‘Weight 2016 oF g T 100" 120 x 2 150 190 Y 4 2.00 230 Zz 5 oxo 070. 18) Assuming that 2016 isthe base year, calculate the weighted price index for each ‘commodity forthe year 2017. (marks) 'b) Calculate the overall weighted CPI forthe year 2017 Gmaris) ©) Whats the rate of inflation or deflation inthe year 2017? @ marks) ‘FCONTSOTDTime2015—— Page I of‘Question 3 (16 marks) 8) Complete the following table by calculating the unemployment rate (12 marks) Country | Total abor force | Total employed Vnemployment rate a 45447 4132s B sun 40000 ci 36513 8975 > 70s 75424 E 19999 ass F 94552 95841 ') List TWO @) groups of gain and TWO 2) groups of loses during inflation. (imarks) s+ END OF QUESTIONS *** ‘FCONTSOTDIwe2018—— Page 12 of