ECON 4000 November 21, 1996
1.
The capital of Poland is ________________________________________.
2. What T.V. program was famous for
the saying, "Who was buried in Grant's
Tomb"?
______________________________________________________.
3. Where did Wallace Peterson teach
at? ___________________________.
Answer
four (4) of the following six ( 6) questions:
1.
What is meant by the acceleration principle?
What are the uses of the concept? What
are the limitations of the concept?
2.
What is meant by a full employment budget?
How should it be used?
3.
Suppose a firm has the following investment projects to consider (at 9%)
(6%) how much would they invest? Construct
the MEC/MEI schedule.
PROJECT
COST
MEC/MEI (%)
A
10,000
16
B
4,000
14
C
21,000
7
D
25,000
5
E
16,500
8
F
6,000
2
4.
What is the role of money in the economy?
What are the issues in determining the impact of money on our economy?
5.
What is the Phillips curve? Is
there a Phillips curve? What
difference does it make? Why is
there not agreement on this issue? What
is the possible solution to the debate on this topic?
6.
Given:
Y =
C + I +
G +
X - M
C =
C + aY - aT
- atY
I = I
+ bY
M =
M + mY
What is equilibrium Y,
C, I, M, and the balance of trade. Also
what is the tax function? Assume
a = .85,
b = .12, m
= .05, t = .2,
C =
60,
T = 80, I = 168, G = 400, X = 200, M = 120