ECN 211 FINAL EXAM 2026 QUESTIONS WITH 100%
CORRECT ANSWERS | LATEST UPDATE 2026/2027 |
GRADED A+ | ASSURED PASS | VERIFIED STUDY GUIDE.
◉ Expansionary monetary policy aids the economy by Answer:
encouraging exports through a lower exchange rate.
◉ A recession is technically defined by the change in the
unemployment rate. (T/F) Answer: False
◉ What does it mean for the government to be the "spender of last
resort?" Answer: When no economic actor is spending, government
can keep income from falling.
◉ What typically happens to the unemployment rate in a recession?
Answer: It rises after the recession has started and can continue
being high once the recession is technically over.
◉ The business cycle lasts a predetermined number of years (T/F)
Answer: False
◉ What is the range of the aggregate supply curve during a demand
side recession? Answer: Keynesian Range
, ◉
◉ If the government experiences a reduction in tax revenue, ceteris
paribus, what should we expect to happen to that country's
exchange rate and trade balance? Answer: Its currency should
appreciate and there should be an increase in the trade deficit.
◉ In S-I=X-M, if savings is held constant, there is a trade deficit and
there is a surge of foreign investment into a country, what should we
expect to happen to that country's exchange rate and trade balance?
Answer: Its currency should appreciate and there should be an
increase in the trade deficit.
◉ In the late 1990s, a reduction in the federal budget deficit should
have reduced the trade deficit yet it didn't. Which of these
explanations makes the most sense for why this didn't happen?
Answer: Investment increased and personal savings decreased by
more than the trade deficit reduction.
What is the main cause of the persistent trade deficits run by the
U.S.? Answer: Low individual and government savings
CORRECT ANSWERS | LATEST UPDATE 2026/2027 |
GRADED A+ | ASSURED PASS | VERIFIED STUDY GUIDE.
◉ Expansionary monetary policy aids the economy by Answer:
encouraging exports through a lower exchange rate.
◉ A recession is technically defined by the change in the
unemployment rate. (T/F) Answer: False
◉ What does it mean for the government to be the "spender of last
resort?" Answer: When no economic actor is spending, government
can keep income from falling.
◉ What typically happens to the unemployment rate in a recession?
Answer: It rises after the recession has started and can continue
being high once the recession is technically over.
◉ The business cycle lasts a predetermined number of years (T/F)
Answer: False
◉ What is the range of the aggregate supply curve during a demand
side recession? Answer: Keynesian Range
, ◉
◉ If the government experiences a reduction in tax revenue, ceteris
paribus, what should we expect to happen to that country's
exchange rate and trade balance? Answer: Its currency should
appreciate and there should be an increase in the trade deficit.
◉ In S-I=X-M, if savings is held constant, there is a trade deficit and
there is a surge of foreign investment into a country, what should we
expect to happen to that country's exchange rate and trade balance?
Answer: Its currency should appreciate and there should be an
increase in the trade deficit.
◉ In the late 1990s, a reduction in the federal budget deficit should
have reduced the trade deficit yet it didn't. Which of these
explanations makes the most sense for why this didn't happen?
Answer: Investment increased and personal savings decreased by
more than the trade deficit reduction.
What is the main cause of the persistent trade deficits run by the
U.S.? Answer: Low individual and government savings
