ECON 104 BILL GOFFE FINAL EXAM
PREP 2026/2027 WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
ANSWERS |CURRENTLY TESTING
QUESTIONS AND SOLUTIONS|ALREADY
GRADED A+|NEWEST |JUST
RELEASED!!|GUARANTEED PASS
Say that both G and T grow. The AD curve then ___.
would be sure to shift right
would be sure to shift left
might shift right or might shift left
might shift right or might shift left
Say that both interest rates fell and that the U.S. dollar depreciated against foreign currencies.
The AD curve then ___.
would be sure to shift right
would be sure to shift left
might shift right or might shift left
would be sure to shift right
If the price of final goods and services (P) increases then ___.
the SRAS curve shifts right
the SRAS curve shifts left
you move down along the SRAS curve
you move up along the SRAS curve
you move up along the SRAS curve
1|Page
,In our recent graphs, we have P on the vertical axis and Y on the horizontal axis. In an expansion
with deflation, the economy would be moving ___ .
down and to the right
down and to the left
up and to the left
up and to the right.
down and to the right
What do we mean by "costs" in this part of the course?
The value of real GDP.
The average price of all final goods and services.
What households pay for things they purchase.
What businesses pay for things they purchase.
What businesses pay for things they purchase.
When the Federal funds rate drops, the AD curve shifts ___ as other interest rates, like ones that
consumer use, are most likely to ___.
left, rise
left, fall
right, rise
right, fall
right, fall
By value of the dollar, economists mean ___.
how many U.S. dollars it takes to buy foreign currency
how prices have risen in the U.S.
both the previous answers
how many U.S. dollars it takes to buy foreign currency
2|Page
,In our static model of aggregate demand and supply, if oil prices fall the AD curve will shift to
the right. (True or False)
false
As one moves up the SRAS curve, profits of business ___.
falls
stay the same
rises
rises
Which of the following NOT will shift AD right?
lower T
more G
more K
lower value of the dollar
more K
Back in Section 2 on long-run growth, we described several reasons why the per-worker
production function will shift up. Will these same factors shift the AD curve right?
yes
no
no
If we plot the GDP deflator on the vertical axis and real GDP on the horizontal one, in which
direction is the economy moving if it is experiencing inflation and an expansion?
up and left
up and right
down and left
down and right
up and right
3|Page
, Which of the following would occur if technology improved?
-the per-worker production function curve shifts up and the SRAS curve shifts right
-the SRAS shifts right and the AD curve shifts right
-the AD curve shifts right and the per-worker production function curve shifts up
the per-worker production function curve shifts up and the SRAS curve shifts right
Technology plays a role in both the AD-SRAS graph and the per-worker production function.
Which of the following would NOT occur if human capital grew?
K/L would grow
P would fall
Y would grow
Y/L would grow
K/L would grow
Which best describes why recessions occur?
there is a quick shift to the left in AD or SRAS
there is a quick shift to the right in AD or SRAS
the economy runs out of inputs so real GDP declines
there is a quick shift to the left in AD or SRAS
What would happen if household disposable income rose?
AD shifts right
AD shifts left
SRAS shifts right
SRAS shifts left
AD shifts right
What would be the impact if it used to take $1.50 to buy one euro and it now took $1.75?
P would rise, Y would rise
P would rise, Y would fall
4|Page
PREP 2026/2027 WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
ANSWERS |CURRENTLY TESTING
QUESTIONS AND SOLUTIONS|ALREADY
GRADED A+|NEWEST |JUST
RELEASED!!|GUARANTEED PASS
Say that both G and T grow. The AD curve then ___.
would be sure to shift right
would be sure to shift left
might shift right or might shift left
might shift right or might shift left
Say that both interest rates fell and that the U.S. dollar depreciated against foreign currencies.
The AD curve then ___.
would be sure to shift right
would be sure to shift left
might shift right or might shift left
would be sure to shift right
If the price of final goods and services (P) increases then ___.
the SRAS curve shifts right
the SRAS curve shifts left
you move down along the SRAS curve
you move up along the SRAS curve
you move up along the SRAS curve
1|Page
,In our recent graphs, we have P on the vertical axis and Y on the horizontal axis. In an expansion
with deflation, the economy would be moving ___ .
down and to the right
down and to the left
up and to the left
up and to the right.
down and to the right
What do we mean by "costs" in this part of the course?
The value of real GDP.
The average price of all final goods and services.
What households pay for things they purchase.
What businesses pay for things they purchase.
What businesses pay for things they purchase.
When the Federal funds rate drops, the AD curve shifts ___ as other interest rates, like ones that
consumer use, are most likely to ___.
left, rise
left, fall
right, rise
right, fall
right, fall
By value of the dollar, economists mean ___.
how many U.S. dollars it takes to buy foreign currency
how prices have risen in the U.S.
both the previous answers
how many U.S. dollars it takes to buy foreign currency
2|Page
,In our static model of aggregate demand and supply, if oil prices fall the AD curve will shift to
the right. (True or False)
false
As one moves up the SRAS curve, profits of business ___.
falls
stay the same
rises
rises
Which of the following NOT will shift AD right?
lower T
more G
more K
lower value of the dollar
more K
Back in Section 2 on long-run growth, we described several reasons why the per-worker
production function will shift up. Will these same factors shift the AD curve right?
yes
no
no
If we plot the GDP deflator on the vertical axis and real GDP on the horizontal one, in which
direction is the economy moving if it is experiencing inflation and an expansion?
up and left
up and right
down and left
down and right
up and right
3|Page
, Which of the following would occur if technology improved?
-the per-worker production function curve shifts up and the SRAS curve shifts right
-the SRAS shifts right and the AD curve shifts right
-the AD curve shifts right and the per-worker production function curve shifts up
the per-worker production function curve shifts up and the SRAS curve shifts right
Technology plays a role in both the AD-SRAS graph and the per-worker production function.
Which of the following would NOT occur if human capital grew?
K/L would grow
P would fall
Y would grow
Y/L would grow
K/L would grow
Which best describes why recessions occur?
there is a quick shift to the left in AD or SRAS
there is a quick shift to the right in AD or SRAS
the economy runs out of inputs so real GDP declines
there is a quick shift to the left in AD or SRAS
What would happen if household disposable income rose?
AD shifts right
AD shifts left
SRAS shifts right
SRAS shifts left
AD shifts right
What would be the impact if it used to take $1.50 to buy one euro and it now took $1.75?
P would rise, Y would rise
P would rise, Y would fall
4|Page
