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* Ewr £36 { Economics E361 Test T Fall 2010 - BF Ib we tt 6" Name (Print): On Thursday, Tuesday November 16, I will pass out a replacement point problem set which you can earn up to a then specified number of points that will be use to replace points you missed on this exam. The replacement point assignment along with homework 5, which will be included with the replacement point assignment, is due at the beginning of class on Thursday, November 18. I will not discuss the exam until Tuesday, November 30 (fall break goes the week of November 22-26 and there is no class). I will hand out the solutions to this exam on Thursday, November 18, after you turn in your replacement point problem set. You have 70 minutes to complete this exam. The exam is worth a total of 80 course points. Please write in a legible manner. What I cannot read I will consider incorrect. Answer all of the following questions. You should have 8 pages with 10 questions printed on them. It is your responsibility to ensure that you have all of the questions. 1. Recalling that the size of the federal government in the United States has been growing over time answer the following questions. a. (5 points) In the United States, the price level and per capita real income have changed over time. Explain how these observations can help to explain society’s preferences towards the size of government and help to explain the growth in the size of the federal government. Wave Cond 62 caQercd G4 Peale Mo, rverewer fo _Cedrerebare. iacovne., fy, Gee aOR Ue OF aren a " \ Kon Yo We Gere aad Keo Meee © By dee Wag Cltugee ho enkocate reeene hey & aicwir \s Sua We- cert C. 4 "ey 4 0 FR OS ey Ped ahs .Guicn. “5 b. (1 point) Does the above explanation of growth in the government sector explain most of the observed growth in the U.S. economy over the last 80 years? (Just state yes or no) \\o. Page | of 8 
