Tutorial Test S1 2014 MACROECONOMICS 1 ECON 1102
School of Economics Australian School of Business

Name:_____________________________________________________________________ Student number:_____________________________________________________________ Tutorial day/time:____________________________________________________________ Tutor’s name:_______________________________________________________________ 1. You must provide student ID before you begin the test. 2. You will have 30 minutes to answer all of the questions. 3. A non-programmable calculator may be used. 4. Answer the questions in the space provided on this test paper. 5. All electronic communication devices must be switched off. 6. Tutorial tests will be constructed from the following pool of short-answer questions. 7. Each Tutorial test will be comprised of a sufficient number of short-answer questions to add-up to a total of 20 marks. 8. The marks for each question provide an indication of how much is required to answer the question. 9. Tutorial tests may contain questions on different topics. 10. The set of questions used will vary across Tutorial tests. 11. Where questions have numerical parts, the actual numbers used will be changed for the Tutorial tests.
12. Since the following questions will be used; lecturers, tutors and PASS leaders will

not provide help in directly answering the questions.

The following equations describe planned spending for a closed economy. ( ) (a) Write out the equation for the private saving function for this economy. (1 mark) (b) What is exogenous (autonomous) expenditure and what is the value of the multiplier? Calculate equilibrium output for this economy. Show how you obtained your figure. (2 marks) (c) Calculate the size of the budget surplus at equilibrium output. (1 mark) (d) What is the size of the balanced budget multiplier for this economy? (1 mark)