SUBJECT APPLIED MACROECONOMICS IN ISLAMIC PERSPECTIVE
LECTURER Faiza Husnayeni Nahar, M.Ec
TIME 90 Minutes
DAY/DATE Tuesday, 17th December 2019
VENUE PS. 407
DEPT/PROGRAM Economics - IPIEF
TYPE/RULE Closed Book
- Please pray before and after doing your exam!
- Read carefully every single question, and provide your answers on the available sheets!
- You may use dictionary to help answer your exam!
- Any form of cheating is NOT entertained. Therefore, this exam is considered VOID and will be calculated in your final results.
1. Explain the following: (20)
a) Classical and Keynes perspective on recession! (5)
b) Explain the flow of the net-export effect on changes in aggregate demand (AD)! (5) c) Factors that can shift the curve of aggregate demand! (10)
2. Explain and describe the economic conditions as follows: (20) a) Increased of government spending and increased taxes! (5) b) Factors that shift the curve of aggregate supply (AS)! (5)
c) Explain the flow of technology and productivity in shifting the AS curve (5)
d) Statement one: “You would rather increase economic growth due to a shift in the AD curve”
Statement two: “You would rather increase economic growth due to a shift in the AS curve!”
Please choose one statement, explain and describe the curve! (5)
3. Calculate the questions below: (40)
a) Consumption of people from a country is C = 50 + 0.80 Y, if the savings are 47.00. How much is the consumption? (10)
FINAL EXAM, ODD SEMESTER 2019/2020
INTERNATIONAL PROGRAM FOR ISLAMIC ECONOMICS AND FINANCE (IPIEF) DEPARTMENT OF ECONOMICS, FACULTY OF ECONOMICS AND BUSINESS
UNIVERSITAS MUHAMMADIYAH YOGYAKARTA
b) The potential GDP is 750 trillion rupiahs, the actual GDP is 500 trillion rupiahs with a MPC value of 0.8. By an expansive fiscal policy, how many trillion rupiahs must be spent by the government to close the 150 trillion rupiahs gap and how many trillion tax should be lowered? (15)
c) The actual GDP is 800 trillion rupiahs, the potential GDP is 600 trillion rupiahs with an MPC value of 0.75. With a contractionary fiscal policy, how many trillion rupiahs should be reduced by the government to close the 200 trillion rupiahs gap and how many trillion tax should be raised! (15)
4. Explain and mention the following: (20)
a) State the reasons why you must understand the fiscal policy! (5) b) Leakages vs Injection (5)
c) Curves during recession and inflationary (5)
d) Explain why the Aggregate Expenditure curve is flatter than the Aggregate Production curve! (5)
