2025 ASU ECON 211 Final Exam with accurate questions
and verified answers covering principles of
macroeconomics, fiscal policy, monetary systems, and
economic indicators.
The Circular Flow Diagram - ans -Green arrows represent the flow of money and
red represents to flow of goods/services
Production possibilities Frontier/ Curve PPF: PPC - ans -The curve shows what is
possible within an economy
D- impossible
A&B - feasible efficient
C - feasible & inefficient
Demand shifters - ans -- Price of substitute or complement
- Consumer preference
- population growth
- Income and expectation of future income
Supply shifters - ans -- Price of input
- Technological advancement
- Number of producers
- Producer expectation
Solve for Equilibrium Price and Quantity - ans -Make both sides equal to each
other
Ex. Q = 100 - 6P & Q = 28 + 3P
100 - 6P = 28 + 3P
72 - 9P
P=8
28 + 3(8)
28 + 24
52 = Q
, Economic Growth is measured... - ans -Growth is measured in many ways, usually
GDP (the market value of all final goods and services produced in a nation's
borders) Productivity (output/labor hours)
What causes productivity? - ans -- Human Capital
- Natural Resources
- Physical Capital
- Technological Knowledge
Human Capital - ans -Knowledge and skills of workers (education, training)
Natural Resources - ans -Anything that comes from nature (timber, oil, coal)
Physical Capital - ans -All the physical tools and machines used to do business
Technological Knowledge - ans -The general knowledge of the world
GDP Equation - ans -GDP = G + C + I + NX = ALL PRODUCTION = ALL
CONSUMPTION
Consumption (C) - ans -Things purchased for final use
Investment (I) - ans -Things purchased to use to make more money later
Government Spending (G) - ans -Any money the government uses
Nominal GDP - ans -is this years' prices * this years quantities
Real GDP - ans -is base years' prices * is years quantities
GDP Deflator - ans -Nominal GDP/Real GDP*100
Inflation - ans -using GDP deflator = (this years deflator - last years' deflator) last
years' deflator
CPI- Consumer Price Index - ans -Makes a basket of good to calculate the cost of
living for a given year. Multiply current year prices * base year quantities
and verified answers covering principles of
macroeconomics, fiscal policy, monetary systems, and
economic indicators.
The Circular Flow Diagram - ans -Green arrows represent the flow of money and
red represents to flow of goods/services
Production possibilities Frontier/ Curve PPF: PPC - ans -The curve shows what is
possible within an economy
D- impossible
A&B - feasible efficient
C - feasible & inefficient
Demand shifters - ans -- Price of substitute or complement
- Consumer preference
- population growth
- Income and expectation of future income
Supply shifters - ans -- Price of input
- Technological advancement
- Number of producers
- Producer expectation
Solve for Equilibrium Price and Quantity - ans -Make both sides equal to each
other
Ex. Q = 100 - 6P & Q = 28 + 3P
100 - 6P = 28 + 3P
72 - 9P
P=8
28 + 3(8)
28 + 24
52 = Q
, Economic Growth is measured... - ans -Growth is measured in many ways, usually
GDP (the market value of all final goods and services produced in a nation's
borders) Productivity (output/labor hours)
What causes productivity? - ans -- Human Capital
- Natural Resources
- Physical Capital
- Technological Knowledge
Human Capital - ans -Knowledge and skills of workers (education, training)
Natural Resources - ans -Anything that comes from nature (timber, oil, coal)
Physical Capital - ans -All the physical tools and machines used to do business
Technological Knowledge - ans -The general knowledge of the world
GDP Equation - ans -GDP = G + C + I + NX = ALL PRODUCTION = ALL
CONSUMPTION
Consumption (C) - ans -Things purchased for final use
Investment (I) - ans -Things purchased to use to make more money later
Government Spending (G) - ans -Any money the government uses
Nominal GDP - ans -is this years' prices * this years quantities
Real GDP - ans -is base years' prices * is years quantities
GDP Deflator - ans -Nominal GDP/Real GDP*100
Inflation - ans -using GDP deflator = (this years deflator - last years' deflator) last
years' deflator
CPI- Consumer Price Index - ans -Makes a basket of good to calculate the cost of
living for a given year. Multiply current year prices * base year quantities
