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Economics 2B, ECON2002

1.   Advice on the contents of the exam and technical support

If you have questions about the contents of this paper, or you require technical       assistance, please contact our virtual invigilation team at the University of Glasgow Helpdeskhttps://www.gla.ac.uk/helpor on +44 (0)141 330 4800.

An academic member of staff will be available to answer questions about the          examination as they would normally at the beginning of the exam.  Technical          support will be available 24 hours per day. To ensure timely responses and that all students receive the same information, you should not contact academic staff        directly but instead use the Helpdesk.

2.   You are about to sit an online assessment

The duration of this exam is 1 hour 30 minutes. Where uploading of files is required you will have 30 minutes to upload your answer files.

3.   Time adjustments for students with disabilities

If you have been assessed through the University’s Disability Service as needing time adjustments in exams, your additional time allowance has been configured in             Moodle for each exam.

4.   Enlarging the text

If you need to enlarge the text of a PDF document: open Adobe Acrobat; click on the VIEW tab; click on ZOOM and then ZOOM TO; select the desired magnification level.

5.   Planning your time

When planning your time, and where required, you should allocate time to               download the exam paper and to upload your answers to Moodle at the end of the exam.  For students instructed to do so, you should allow time to submit your exam script on Turnitin within the exam period.  Please report any technical difficulties

experienced as soon as possible viahttps://www.gla.ac.uk/help.

6.   Submitting your answers

Acceptable file types for submitting typed documents are: DOC/DOCX; RTF; PDF; XLS/XLSX.

Acceptable file types for submitting high resolution images are: JPG; PNG; TIF; PDF.

Please check that you have uploaded the CORRECT FILE, that it is readable and is the version that you want to be marked; if you use a word-processing package other than Word, you are advised to convert and upload as a pdf.

Lastly please ensure you upload files to the correct course Moodle assignment.

Late submissions

The exam has been configured to ‘auto-submit’ open responses. If you have not        submitted your completed answers by this time you should submit via:business-       school-assessment@glasgow.ac.uk. Submissions made direct to School/RI in the two hours following the end of the scheduled exam time will be treated as late’ and will be graded ‘H’ . Any submissions made beyond this time will be treated as non-            submissions.

7.   Declaration of Academic Integrity

The following information is very important – your degree may be at risk if you do not adhere to these instructions:

•   You must not communicate with any other person about these examination questions during the period in which you can submit your answers

•   You must follow any instructions on your examination paper regarding use of resources such as internet sources, books, notes or any other material that    would not normally be allowed in examinations on campus.

•   The work you submit must be entirely your own effort and must demonstrate your understanding rather than reproduce text from notes, slides, books, or   online sources (which is plagiarism)

•   You must not submit answers you have discussed with or copied from others, and you must not copy from notes you have prepared with or shared with      others.  If your answers are similar to those of any other candidate(s) you will both/all be suspected of collusion and referred to Student Conduct

•   This declaration incorporates the University’s Declaration of Originality which applies to all academic work (see below).

8.   Declaring that the work is your own

Before viewing the exam paper, you must check the box in the Exam Section of the Moodle page to agree to both this declaration and the University’s Declaration of   Originality. You will be unable to access the exam paper until you do so.

Part 2 (50%)

Answer 2 questions out of four

9. Assume a country has presidential elections every three years. If a political        business cycle exists in this country, explain any differences in the average annual growth rates of output for each year of a typical administration.

10.Explain what central banks can do when they encounter a liquidity trap and cannot use conventional monetary policy.

11.Explain how a reduction in the proportion of contracts that are indexed affects the relationship between changes in the unemployment rate and inflation.

12. Suppose the interest parity condition holds and that the domestic interest rate is greater than the foreign interest rate. What does this imply about the current versus future expected exchange rate? Explain.