16. Which of the following is the most important variable for judging an economy's long-run performance?
(A) growth in nominal GDP
(B) growth in real GDP
(C) growth in real GDP per capita
(D) growth in potential GDP

12. Take a graph with the unemployment rate on the horizontal axis and the infation rate on the vertical axis. Which of the following will shift the Phillips curve towards the northeast? (A) A positive aggregate demand shock (B) Contractionary monetary policy (C) A negative aggregate supply shock (D) A decrease in expected inflation

13. Which of the following statements is necessarily false； (A) Monetary policy can be conducted through open market operations, setting the minimum reserve requirement and through changing the refinancing rate at which banks can borrow money from the central bank. (B) In the short run, an increase in money supply causes a proportional increase in prices. Over time the latter decrease again. (C) Unemployment benefits are automatic stabilizers. (D) The positive effect of expansionary fiscal policy on production is reduced by crowding out.

14. According to the theory of sticky wages: (A) prices adjust slowly to a decrease in nominal wages. Firms face lower wages and since prices stay high they increase the level of produetion and thus employment. This results in higher aggregate supply. (B) wages adjust slowly to a decrease in prices. Firms face lower prices and since the costs of production stay high they have to decrease production and thus employment. This decreases aggregate supply. (C) not all frms immediately adjust their prices in reaction to a decrease in the price level. These firms face higher prices and thus they increase production, which increases aggregate supply. (D) prices react more than proportionally to increases in nominal wages. Producers face higher wages, but since prices increase more than wages they want to increase production. This results in higher aggregate supply.

15. According to the AS-AD model an increase of public investanent (A) might decrease GDP in the short run because of crowding out. (B) decreases prices in the short run which stimulates an economic recovery. (C) does not change long run aggregate supply. (D) increases aggregate supply which is depicted as a shift of the AS curve to the right.

17. Assume that the currency-deposit ratio is 32%, the required reserve-deposit ratio is 7%, the excess reserve-deposit ratio is 1%, and total money supply is S1,320 billion. What is the amount of high-powered money? (A) $132 billion (B) $165 billion (C) $330 billion (D) $400 billion

18. When the central bank intervenes in the foreign exchange market by purchasing foreign cur- rency, it also routinely engages in open market sales of government securities. Why? (A) it has to sell securities to acquire the necessary funds (B) to avoid a recession that may be caused by the reduction in money supply resulting from the purchase of foreign currency (C) to prevent its intervention in the foreign exchange market from having a direct effect upon the domestic money supply (D) it wants to isolate the domestic economy from foreign competition

19. According to the Baumol-Tobin transaction demand model, money demand for transactions (A) depends only on the level of income (B) depends only on the cost of illiquidity (C) varies inversely with both the interest rate and the level of income (D) increases as the interest rate decreases or income increases

20. Which are the three channels by which the Central Bank can reduce money supply? (A) buy government securities, lower reserve requirements, and lower the discount rate (B) buy government securities, raise reserve requirements, and raise the discount rate (C) buy government securities, lower reserve requirements, and raise the discount rate (D) sell government securities, raise reserve requirements, and raise the discount rate 

1 م ________ رئیس الوزراء الیاباني السابق شینزو آبي خلال تج ّمع انتخابي غرب البلاد. (A) اختیار (B) اختطاف (C) اغتیال (D) ابتسام

2 ________ -ھو استعادة المتھم أو الجاني من بلد فر منھ بعد ارتكاب جریمة. (A) تسلیم المجرم (B) تسلیم المفتى (C) تسلیم المحرج (D) تسلیم المبرج