Econ 2035 Chapter 15 Final Exam with
Guaranteed Pass Solutions 2026
Updated.
A) fair wages - Answer 1) Which of the following is NOT considered to be a goal of monetary
policy?
A) fair wages
B) high employment
C) economic growth
D) price stability
C) price stability - Answer 2) Which of the following is considered to be a goal of monetary
policy?
A) a low federal budget deficit
B) fair wages
C) price stability
D) an end to poverty
B) makes prices less useful as signals for resource allocation. - Answer 3) Inflation is an
economic problem because it
A) leads inevitably to unemployment.
B) makes prices less useful as signals for resource allocation.
C) leads to recession.
D) results in rapid increases in the money supply.
B) a steady decrease in interest rates. - Answer 4) All of the following are associated with
rising inflation EXCEPT
A) income redistribution.
B) a steady decrease in interest rates.
C) firms hesitating to enter into long-term contracts with suppliers.
D) families having trouble deciding how much to save for retirement.
C) hyperinflation. - Answer 5) Rates of inflation in the hundreds or thousands of percent per
year are known as
A) super inflation.
B) megainflation.
,C) hyperinflation.
D) overinflation.
C) Germany - Answer 6) Which of the following countries experienced hyperinflation during
the 1920s?
A) The United States
B) Canada
C) Germany
D) England
A) promote high employment consistent with price stability. - Answer 7) The Employment
Act of 1946 codified the federal government's commitment to
A) promote high employment consistent with price stability.
B) promote high employment irrespective of the effects on price stability.
C) guarantee a job to every unemployed person.
D) fine companies that engage in excessive layoffs during recessions.
C) is inconsistent with a well-functioning economy. - Answer 8) Most economists believe that
a zero rate of unemployment
A) is obtainable with the correct monetary policy.
B) would result in a better functioning economy.
C) is inconsistent with a well-functioning economy.
D) is obtainable only if the inflation rate is also zero.
A) frictionally unemployed. - Answer 9) John Smith leaves his job in New York to go to
California in hopes of finding a better one. If John Smith is unemployed while searching for a job
in California, economists would consider him to be
A) frictionally unemployed.
B) structurally unemployed.
C) cyclically unemployed.
D) naturally unemployed.
B) unemployment is at its natural rate. - Answer 10) When all workers who want jobs have
them and the demand for and supply of labor are in equilibrium
A) the unemployment rate will be zero.
B) unemployment is at its natural rate.
C) the economy will be experiencing high rates of inflation.
, D) frictional unemployment will be zero.
A) Currently, most economists think that the natural rate is about 5%. - Answer 11) Which of
the following statements about the natural rate of unemployment is correct?
A) Currently, most economists think that the natural rate is about 5%.
B) Currently, most economists believe the natural rate is zero.
C) When unemployment is at its natural rate, then only frictional unemployment remains.
D) When unemployment is at its natural rate, then only structural unemployment remains.
B) structural unemployment. - Answer 12) The unemployment that is caused by changes in
the economy, such as shifts in manufacturing techniques, increased use of computers and
electronic machines, and increases in the production of services instead of goods, is called
A) frictional unemployment.
B) structural unemployment.
C) cyclical unemployment.
D) natural unemployment.
C) structurally unemployed. - Answer 13) Sally Jones lost her job at a steel company because
of a permanent decline in the demand for steel. Sally Jones is considered by economists to be
A) naturally unemployed.
B) cyclically unemployed.
C) structurally unemployed.
D) frictionally unemployed.
D) often leads to high rates of investment. - Answer 14) High employment spurs economic
growth because high employment
A) usually reduces inflation.
B) discourages foreign imports.
C) often leads to a high birth rate.
D) often leads to high rates of investment.
C) resources are lost. - Answer 15) When financial markets and institutions are NOT efficient
in matching savers and borrowers
A) interest rates fall, which discourages saving even further.
B) interest rates fall, which discourages investment even further.
C) resources are lost.
D) investment rises.
Guaranteed Pass Solutions 2026
Updated.
A) fair wages - Answer 1) Which of the following is NOT considered to be a goal of monetary
policy?
A) fair wages
B) high employment
C) economic growth
D) price stability
C) price stability - Answer 2) Which of the following is considered to be a goal of monetary
policy?
A) a low federal budget deficit
B) fair wages
C) price stability
D) an end to poverty
B) makes prices less useful as signals for resource allocation. - Answer 3) Inflation is an
economic problem because it
A) leads inevitably to unemployment.
B) makes prices less useful as signals for resource allocation.
C) leads to recession.
D) results in rapid increases in the money supply.
B) a steady decrease in interest rates. - Answer 4) All of the following are associated with
rising inflation EXCEPT
A) income redistribution.
B) a steady decrease in interest rates.
C) firms hesitating to enter into long-term contracts with suppliers.
D) families having trouble deciding how much to save for retirement.
C) hyperinflation. - Answer 5) Rates of inflation in the hundreds or thousands of percent per
year are known as
A) super inflation.
B) megainflation.
,C) hyperinflation.
D) overinflation.
C) Germany - Answer 6) Which of the following countries experienced hyperinflation during
the 1920s?
A) The United States
B) Canada
C) Germany
D) England
A) promote high employment consistent with price stability. - Answer 7) The Employment
Act of 1946 codified the federal government's commitment to
A) promote high employment consistent with price stability.
B) promote high employment irrespective of the effects on price stability.
C) guarantee a job to every unemployed person.
D) fine companies that engage in excessive layoffs during recessions.
C) is inconsistent with a well-functioning economy. - Answer 8) Most economists believe that
a zero rate of unemployment
A) is obtainable with the correct monetary policy.
B) would result in a better functioning economy.
C) is inconsistent with a well-functioning economy.
D) is obtainable only if the inflation rate is also zero.
A) frictionally unemployed. - Answer 9) John Smith leaves his job in New York to go to
California in hopes of finding a better one. If John Smith is unemployed while searching for a job
in California, economists would consider him to be
A) frictionally unemployed.
B) structurally unemployed.
C) cyclically unemployed.
D) naturally unemployed.
B) unemployment is at its natural rate. - Answer 10) When all workers who want jobs have
them and the demand for and supply of labor are in equilibrium
A) the unemployment rate will be zero.
B) unemployment is at its natural rate.
C) the economy will be experiencing high rates of inflation.
, D) frictional unemployment will be zero.
A) Currently, most economists think that the natural rate is about 5%. - Answer 11) Which of
the following statements about the natural rate of unemployment is correct?
A) Currently, most economists think that the natural rate is about 5%.
B) Currently, most economists believe the natural rate is zero.
C) When unemployment is at its natural rate, then only frictional unemployment remains.
D) When unemployment is at its natural rate, then only structural unemployment remains.
B) structural unemployment. - Answer 12) The unemployment that is caused by changes in
the economy, such as shifts in manufacturing techniques, increased use of computers and
electronic machines, and increases in the production of services instead of goods, is called
A) frictional unemployment.
B) structural unemployment.
C) cyclical unemployment.
D) natural unemployment.
C) structurally unemployed. - Answer 13) Sally Jones lost her job at a steel company because
of a permanent decline in the demand for steel. Sally Jones is considered by economists to be
A) naturally unemployed.
B) cyclically unemployed.
C) structurally unemployed.
D) frictionally unemployed.
D) often leads to high rates of investment. - Answer 14) High employment spurs economic
growth because high employment
A) usually reduces inflation.
B) discourages foreign imports.
C) often leads to a high birth rate.
D) often leads to high rates of investment.
C) resources are lost. - Answer 15) When financial markets and institutions are NOT efficient
in matching savers and borrowers
A) interest rates fall, which discourages saving even further.
B) interest rates fall, which discourages investment even further.
C) resources are lost.
D) investment rises.
