Question 1

Which of the following best describes the function of the 'classEx' platform as introduced in the study materials?

Accepted Answer

It is a tool for conducting interactive classroom experiments and surveys, allowing students to participate via mobile devices.

Question 2

In the context of national accounts, which of the following transactions would be recorded as gross investment?

Accepted Answer

The construction of a new house by a private household.

Question 3

Suppose the price of a meal in the US is $$38 and the per capita domestic product is 88$$,000. According to the study materials, how many meals could the average American produce and consume if all production were focused solely on meals?

Accepted Answer

$$88,000 / 38 = 2$$,316 meals

Question 4

Which of the following statements about the difference between nominal and real domestic product is correct?

Accepted Answer

Nominal domestic product is measured at current market prices, while real domestic product is measured using prices from a base year.

Question 5

In the growth model, what is the effect of an increase in the population growth rate $$n on $$the steady-state per capita capital stock $$k^*$$?

Accepted Answer

An increase in $$n$$ reduces the steady-state per capita capital stock $$k^*.$$

Question 6

Which of the following best explains the 'paradox of thrift' as discussed in the study materials?

Accepted Answer

An attempt by individuals to increase their saving leads to a decrease in aggregate income, so aggregate saving does not increase.

Question 7

According to the Keynesian consumption function $$C = a + cY$$, what does the parameter $$a$$ represent?

Accepted Answer

$$a is $$autonomous consumption, the amount consumed even if income $$Y is $$zero.

Question 8

If the deﬂator for a given year is calculated as $$	ext{Deﬂator} = \frac{	ext{Nominal domestic product}}{	ext{Real domestic product}} = 1.23$$, what does this imply about the price level compared to the base year?

Accepted Answer

The price level has increased by 23% compared to the base year.

Question 9

Which of the following is NOT included in the calculation of a country's domestic product?

Accepted Answer

Unpaid household work such as home-grown vegetables consumed at home.

Question 10

In the context of the macroeconomic schools of thought, which statement best characterizes 'macroeconomics as engineering'?

Accepted Answer

It emphasizes empirical regularities and policy recommendations based on observed macro-level data, not necessarily requiring microfoundations.

Question 11

Suppose in a classEx game, the dispersion of chosen working hours is lower in session 2 than in session 1. What is the most likely explanation for this outcome?

Accepted Answer

Participants used feedback from session 1 to coordinate their choices, reducing variance.

Question 12

Which of the following best describes the 'fallacy of composition' in macroeconomics?

Accepted Answer

It is the error of assuming that what is true for an individual is also true for the whole economy.

Question 13

In the simple goods market model, if autonomous consumption $$a$$ decreases by 100 and the marginal propensity to consume $$c = \frac{2}{3}$$, what is the change in equilibrium income $$dY$$?

Accepted Answer

$$dY = \frac{1}{1-c} \cdot da = \frac{1}{1-\frac{2}{3}} \cdot (-100) = -300$$

Question 14

Which of the following is a criticism of using real per capita domestic product as the sole measure of standard of living?

Accepted Answer

It does not account for non-material factors such as health, leisure, and environmental quality.

Question 15

According to the study materials, which of the following is a plausible real-world example of the 'paradox of thrift'?

Accepted Answer

During a recession, many households try to save more, but aggregate saving does not increase because total income falls.

Macroeconomics: Foundations, National Accounts, and Growth

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