ECON 104 FINAL – GOFFE EXAM LATEST 2026|2027 UPDATED
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100%) | ALREADY
GRADED A+
underemployment rate (U-6) - Correct Answer -much higher than unemployment rate, about a 7.5%
difference in the height of the most recent recession
Unemployed more than 27 weeks - Correct Answer -highest its been was right after the great recession
and is lower now at about 30%
Okun's Law - Correct Answer -Δ%Y=3-2ΔU
y is real GDP and U is unemployment rate
Causes of recessions - Correct Answer -1. Monetary policy
2. Oil Shock
3. Fiscal policy
4. Financial policy
Monetary policy and recessions - Correct Answer -federal reserve's dual mandate which focuses on max
employment, stable prices, and moderate long term interest rates
1|Page
,Oil Shock - Correct Answer -
Fiscal policy and recessions - Correct Answer -federal spending and taxes
Financial policy and recessions - Correct Answer -
market - Correct Answer -a group of buyers and sellers of a good or service and the institution or
arrangement by which they came together to trade
product market - Correct Answer -a market for goods and services
factor market - Correct Answer -a market for the factors of production, such as labor, capital, natural
resources, and entrepreneurial ability
free market - Correct Answer -a market with few government restrictions on how a good or service can
be produced or sold or on how a factor of production can be employed
2|Page
, property rights - Correct Answer -the rights individuals or firms have to the exclusive use of their
property including the right to buy or sell it
long run economic growth - Correct Answer -the process by which rising productivity increases the
average standard of living
labor productivity - Correct Answer -the quantity of goods and services that can be produced by one
worker or by one hour of work
capital - Correct Answer -manufactured goods that are used to produce other goods and services
industrial revolution - Correct Answer -the application of mechanical power to the production of goods,
beginning in England around 1750
economic growth model - Correct Answer -a model that explains growth rates in real GDP per capita over
the long run
3|Page
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100%) | ALREADY
GRADED A+
underemployment rate (U-6) - Correct Answer -much higher than unemployment rate, about a 7.5%
difference in the height of the most recent recession
Unemployed more than 27 weeks - Correct Answer -highest its been was right after the great recession
and is lower now at about 30%
Okun's Law - Correct Answer -Δ%Y=3-2ΔU
y is real GDP and U is unemployment rate
Causes of recessions - Correct Answer -1. Monetary policy
2. Oil Shock
3. Fiscal policy
4. Financial policy
Monetary policy and recessions - Correct Answer -federal reserve's dual mandate which focuses on max
employment, stable prices, and moderate long term interest rates
1|Page
,Oil Shock - Correct Answer -
Fiscal policy and recessions - Correct Answer -federal spending and taxes
Financial policy and recessions - Correct Answer -
market - Correct Answer -a group of buyers and sellers of a good or service and the institution or
arrangement by which they came together to trade
product market - Correct Answer -a market for goods and services
factor market - Correct Answer -a market for the factors of production, such as labor, capital, natural
resources, and entrepreneurial ability
free market - Correct Answer -a market with few government restrictions on how a good or service can
be produced or sold or on how a factor of production can be employed
2|Page
, property rights - Correct Answer -the rights individuals or firms have to the exclusive use of their
property including the right to buy or sell it
long run economic growth - Correct Answer -the process by which rising productivity increases the
average standard of living
labor productivity - Correct Answer -the quantity of goods and services that can be produced by one
worker or by one hour of work
capital - Correct Answer -manufactured goods that are used to produce other goods and services
industrial revolution - Correct Answer -the application of mechanical power to the production of goods,
beginning in England around 1750
economic growth model - Correct Answer -a model that explains growth rates in real GDP per capita over
the long run
3|Page
