Econ 312 Exam 3 Question and
answers 100% correct 2025
Formula for GDP - correct answer Y = C + I + G + NX
C = consumption
I = Investment
G = Government Purchases
NX = Net Exports
Net Exports Formula (NX) - correct answer Exports-Imports (X-M)
The Wealth Effect - correct answer Price level rises, Real income decreases,
Consumption decreases. Price level decreases, Real income increases,
Consumption increases.
The International Trade Effect - correct answer Price level rises, (Domestic
Products are more expensive for foreign countries), Exports fall, GDP falls.
Price level decreases, Exports rise, GDP raises.
Interest Rate Effect - correct answer Price level rises, Money demand rise,
Interest rates rise, Consumption and Investments fall, Real GDP falls.
long-run aggregate supply curve - correct answer a curve that shows the
relationship in the long run between the price level and the quantity of real
GDP supplied
short-run aggregate supply curve - correct answer a curve that shows the
relationship in the short run between the price level and the quantity of real
GDP supplied by firms
answers 100% correct 2025
Formula for GDP - correct answer Y = C + I + G + NX
C = consumption
I = Investment
G = Government Purchases
NX = Net Exports
Net Exports Formula (NX) - correct answer Exports-Imports (X-M)
The Wealth Effect - correct answer Price level rises, Real income decreases,
Consumption decreases. Price level decreases, Real income increases,
Consumption increases.
The International Trade Effect - correct answer Price level rises, (Domestic
Products are more expensive for foreign countries), Exports fall, GDP falls.
Price level decreases, Exports rise, GDP raises.
Interest Rate Effect - correct answer Price level rises, Money demand rise,
Interest rates rise, Consumption and Investments fall, Real GDP falls.
long-run aggregate supply curve - correct answer a curve that shows the
relationship in the long run between the price level and the quantity of real
GDP supplied
short-run aggregate supply curve - correct answer a curve that shows the
relationship in the short run between the price level and the quantity of real
GDP supplied by firms
