2025 ASU ECON 211 Final Exam with accurate
questions and verified answers covering principles of
macroeconomics, fiscal policy, monetary systems, and
economic indicators.
The National Industrial Readjustment Act limited competition, "set"
prices, and reduced agricultural output. This likely caused what?
A decrease in aggregate supply.
The high tariffs of the 1920s caused what?
Aggregate demand decreased.
Which large social program was created as part of the "Second New
Deal"?
Social Security
In the short-run, an expansion in the money supply leads to
A decrease in interest rates
The short-run effect of a monetary expansion is
An increase in real GDP and price level.
If the interest rate increases...
Aggregate demand decreases.
When the government spends, some households experience an
increase in income and spend more themselves. This causes aggregate
demand to increase by more than the amount of government
spending. This describes...
The multiplier effect
, The decrease in investment that results from an increase in
government purchases is called
Crowding out
All else constant if the government increases spending we should
expect
An increase in interest rates
Suppose nominal GDP increases. This means that
--Nominal income increases
--Nominal expenditure increases
--Nominal value of output increases
Tess purchased an orange at Safeway in January. Lex ate a similar
orange grown in his backyard. What is true?
Tess' orange is included in consumption expenditures and GDP, Lex's is
not.
What is true about the CPI and the GDP deflator?
The quantities and types of goods included in the CPI are fixed over time.
When the Bureau of Labor Statistics calculated the CPI it is assumed
that consumers purchase the same quantity of each good included in
the basket, regardless of the change in price relative to other goods.
This describes the *WHAT (1) bias and usually results in the
CPI WHAT (2)* the true cost of inflation.
(1) Substitution
(2) Overstating
The factors of production used to produce output include what?
Labor and capital
questions and verified answers covering principles of
macroeconomics, fiscal policy, monetary systems, and
economic indicators.
The National Industrial Readjustment Act limited competition, "set"
prices, and reduced agricultural output. This likely caused what?
A decrease in aggregate supply.
The high tariffs of the 1920s caused what?
Aggregate demand decreased.
Which large social program was created as part of the "Second New
Deal"?
Social Security
In the short-run, an expansion in the money supply leads to
A decrease in interest rates
The short-run effect of a monetary expansion is
An increase in real GDP and price level.
If the interest rate increases...
Aggregate demand decreases.
When the government spends, some households experience an
increase in income and spend more themselves. This causes aggregate
demand to increase by more than the amount of government
spending. This describes...
The multiplier effect
, The decrease in investment that results from an increase in
government purchases is called
Crowding out
All else constant if the government increases spending we should
expect
An increase in interest rates
Suppose nominal GDP increases. This means that
--Nominal income increases
--Nominal expenditure increases
--Nominal value of output increases
Tess purchased an orange at Safeway in January. Lex ate a similar
orange grown in his backyard. What is true?
Tess' orange is included in consumption expenditures and GDP, Lex's is
not.
What is true about the CPI and the GDP deflator?
The quantities and types of goods included in the CPI are fixed over time.
When the Bureau of Labor Statistics calculated the CPI it is assumed
that consumers purchase the same quantity of each good included in
the basket, regardless of the change in price relative to other goods.
This describes the *WHAT (1) bias and usually results in the
CPI WHAT (2)* the true cost of inflation.
(1) Substitution
(2) Overstating
The factors of production used to produce output include what?
Labor and capital
