Al- Azhar University- Gaza

Economics Department

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Midterm Exam
Spring 2014

Course: Macroeconomics
Time: 1 hour

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Answer the following 4 questions carefully. ANY ADDITIONAL PAPERS WILL NOT BE GRADED
Q1- Define: (10 marks)
a. Macroeconomics________________________________________________________________
b. A leakage______________________________________________________________________
c. Economic growth________________________________________________________________
d. Basic prices_____________________________________________________________________
e. Imports________________________________________________________________________

Q2- What is the circular flow? Draw showing arrows. (10 marks)

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Q3- What is GNP Deflator? If GNP Deflator for a certain year was 1.2, what does this indicate? (5 marks)

Q4- Derive Aggregate Demand curve out of its components: Consumption and Investment. (15 marks)
End of Questions

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