Exam Stuff

Question 1

How to answer a long question? (5 steps)

Answer 1

1) identify topic
2) discuss key concepts
3) solve task
4) graphical representation
5) conclusion (summary, EV?)

Question 2

MPC = ? (4)

Answer 2

MPC = ΔC/ΔDI

MPC = ΔS/ΔT

MPC = -ΔC/ΔT

MPC = ΔAE(p)/ΔY

Question 3

Government purchaser multiplier = ? (2)

Answer 3

= ΔY/ΔG

= 1/(1-MPC)

Question 4

Tax multiplier = ? (2)

Answer 4

= ΔY/ΔT = (-MPC)/(1-MPC)

Question 5

ΔS = ?

Answer 5

-ΔG

Question 6

ΔDI = ?

Answer 6

-ΔΤ

Question 7

Labour market at steady state?

Answer 7

f.U=s.E

Question 8

GDP deflator = ?

Answer 8

nGDP/rGDP

Question 9

Okun’s law?

Answer 9

ΔrGDP = 3 - 2Δu

Question 10

Marginal physical product of capital?

Answer 10

MP(k) = Δf(k)/Δk

Question 11

Golden rule reached at and golden rule saving rate?

Answer 11

Reached at MP(k) = δ

S(GR) = δk(GR)/f(k(GR))

Question 12

Current account = ?

Answer 12

X-M

Question 13

Real exchange rate = ?

Answer 13

ε = e.p(d)/p(f)

Question 14

MRS = ?

Answer 14

ΔQ(y)/ΔQ(x) = -MU(x)/MU(y)

Question 15

Gradient of budget line = ?

Answer 15

ΔQ(y)/ΔQ(x) = -P(x)/P(y)

Question 16

OCP at?

Answer 16

MU(x)/MU(y) = P(x)/P(y)

Question 17

MRTS = ?

Answer 17

Change in capital/change in labour

-MP(L)/MP(K)

Question 18

MP(L) = ?

Answer 18

Δq/ΔL

Question 19

MP(k) = ?

Answer 19

Δq/ΔK

Question 20

Price of capital?

Answer 20

Economic deprecation + interest rate X value of capital

Question 21

Min cost combination for an output level?

Answer 21

MP(L)/MP(K) = P(L)/P(K)

Question 22

LR output decisions for perfect competition?

Answer 22

P = LRMC

Question 23

Marginal revenue for monopoly?

Answer 23

MR = ΔTR/Δq = P + ΔP/ΔQ x Q

Question 24

MR(L) = ?

Answer 24

MP(L).P