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College Macroeconomics: Tutoring Solution Final Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. How do increases in the price level impact GDP?

Question 2 2. Which of the following policies is a component of supply-side fiscal policy?

Question 3 3. Which of the following BEST defines inflation?

Question 4 4. What is the correct relationship between price and quantity demanded shown by the law of demand?

Question 5 5. What is the result of a negative supply shock?

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Question 6 6. Which exchange rate would most likely be used for a good or service that will be delivered at a future date?

Question 7 7. _____ are payments made by those in the domestic economy to purchase financial and physical assets in other countries.

Question 8 8. Which one of the following scenarios would cause a nation's standard of living to increase?

Question 9 9. When the Fed lowers the discount rate, what will happen?

Question 10 10. What is most likely to happen with a strong dollar?

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Question 11 11. What happens when the government provides a tax incentive for businesses to invest?

Question 12 12. Which of the following is NOT a valid exchange medium for factors of production?

Question 13 13. Which of the following is NOT a variable that influences net exports?

Question 14 14. What is the point at which aggregate supply and aggregate demand intersect?

Question 15 15. An upward sloping SRAS curve and a vertical LRAS reflect the fact that:

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Question 16 16. _____ can often disrupt or make it difficult for domestic firms to compete in various industries.

Question 17 17. Identify the situation where a weak currency, or lower exchange rate, can be beneficial.

Question 18 18. Which of the following would be included in the GDP?

Question 19 19. To calculate the size of an expansionary gap, economists

Question 20 20. Which of the following is NOT a determinant of the productivity of a nation?

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Question 21 21. Suppose the President plans to cut taxes for consumers and also plans to increase defense spending. How will real GDP and the price level be affected?

Question 22 22. What is human capital?

Question 23 23. In year one, a worker's nominal wage is $25,000, and the CPI is 100. The following year, the worker's nominal wages stay the same, but the CPI is 105. In order to calculate the worker's real wage in year two, what needs to be done?

Question 24 24. What are the two reasons that economic output can increase?

Question 25 25. Which is TRUE of points located outside of the production possibility curve?

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Question 26 26. In the Classical Model, what shape is the aggregate supply curve?

Question 27 27. What does the theory of Rational Expectations attempt to explain?

Question 28 28. Keynesian economics believe that insufficient aggregate demand can result in:

Question 29 29. If Mary's nominal income rises by 4%, while her real income fell by 2%, what happens to the level of prices?

Question 30 30. In economics, the term investment refers to what?

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Question 31 31. If the Federal Reserve suddenly decreases the growth rate of the money supply from 6% to 4% per year, what is likely to happen to aggregate demand and real Gross Domestic Product in the short-run?

Question 32 32. What did Keynes believe?

Question 33 33. In a fractional reserve banking system, how does a decrease in reserve requirements affect the money supply?

Question 34 34. What is the most important determinant of saving?

Question 35 35. The table here shows the labor hours necessary to produce one unit of two goods, salmon and coconut creme pies, in two countries. If labor is the only input used, which of the following statements is true?

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Question 36 36. If $100 of new private investment gets added to the economy, and the marginal propensity to consume is 0.80, by how much will aggregate demand increase?

Question 37 37. What is the economics model that describes the demand and supply of money in a nation called?

Question 38 38. Aggregate supply is composed of which of the following?

Question 39 39. How is labor productivity, measured as output per worker, affected by economic drivers?

Question 40 40. This image shows the market demand schedule for bananas. If the price goes from 60 cents to 40 cents, how many more bananas will be purchased per week?

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Question 41 41. If banks have excess reserves of $5,000, and the money supply increased by $20,000, what is the reserve ratio?

Question 42 42. What happens when unemployment falls below the natural rate?

Question 43 43. What is the size of this contractionary gap?

Question 44 44. What occurs when the rate of unemployment goes up at the same time as inflation?

Question 45 45. Why does Saudi Arabia have a large trade surplus?

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Question 46 46. Why is productivity significant to economic growth?

Question 47 47. What happens when money demand increases and all other things remain constant?

Question 48 48. Loretta deposits money into her savings account. If all other factors are held constant, how does this affect M2?

Question 49 49. When economists want to measure current production of an economy at current prices, they use which of the following?

Question 50 50. What's hyperinflation?

College Macroeconomics: Tutoring Solution Final Exam Instructions

Choose your answers to the questions and click 'Next' to see the next question. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. You will lose your work if you close or refresh this page. Good luck!

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