1|Page
ASU ECON 211 FINAL EXAM NEWEST 2026 ACTUAL
EXAM TEST BANK| ECON 211 FINAL EXAM PREP
(ASU) WITH COMPLETE 550 REAL EXAM QUESTIONS
AND CORRECT VERIFIED ANSWERS/ ALREADY
GRADED A+ (MOST RECENT!!)
In the economy of Talikastan in 2015, exports were $500, GDP was
$6400, Government Purchases were $1700, Imports were $400, and
investment was $1800. What was Talikastan's consumption in 2015?
A. $2000
B. $3800
C. $2800
D. $3000 -Correct Answer- A. $2000
A tire manufacturer produces 400 tires valued at $20 each. Three
hundred tires are sold to a tire shop, which then sells them to households
for $50 each. The remaining tires are unsold and are added to the tire
manufacturer's inventory. How much is added to GDP.
A. $13,000
B. $15,000
C. $17,000
D. $8000 -Correct Answer- C. $17,000
pg. 1
,2|Page
If the nominal interest rate is 5% and the rate of inflation is 9%, then the
real interest rate is
A. -0.44 %
B. -4%
C. 4%
D. 14% -Correct Answer- B. -4%
Wholesome Wheat Bakery buys $10.00 worth of flour from Mikes' Mill
and uses the flour to make bread. Wholesome Wheat sells the bread to
the public for $22.00. Taking these two transactions into account, what is
the effect on GDP?
A. GDP increases by $32.00
B. GDP increases by $12.00
C. GDP increases by $10.00
D. GDP increases by $22.00 -Correct Answer- D. GDP increases by
$22.00
The interest rate at which the Federal Reserve Banks lend to commercial
banks is called:
A. Short-term rate
B. Discount rate
C. prime rate
D. federal funds rate -Correct Answer- B. Discount rate
pg. 2
,3|Page
In recent years, the Fed has communicated changes in its monetary
policy by announcing changes in its policy targets for the:
A. growth of the money supply
B. prime interest rate
C. U.S. dollar-foreign currency exchange rate.
D. Federal Funds rate. -Correct Answer- D. Federal Funds rate.
In an effort to avoid recession, the government implements a tax rebate
program , effectively cutting taxes for households. We would expect this
to:
A. increase aggregate demand
B. reduce aggregate supply.
C. affect neither aggregate supply nor aggregate demand.
D. reduce aggregate demand -Correct Answer- A. increase aggregate
demand
If you use cash to purchase a used Honda Civic, you are using money
primarily as:
A. a unit of account
B. a store of value
C. an economic investment
D. a medium of exchange -Correct Answer- D. a medium of exchange
pg. 3
, 4|Page
Suppose the ABC banks has excess reserves of $4,000 and outstanding
checkable deposits of $80,000. If the reserved requirement is 25%, what
is he size of the actual reserves?
A. $84,000
B. $24,000
C. $20,000
D. $16,000
Actual reserve= required+excess reserves. -Correct Answer- B. $24,000
If the MPC in an economy is .9, government could shift the aggregate
demand curve rightward by $40 billion by:
A. increasing taxes by $4 billion
B. increasing govt. spending by $4 billion
C. Increasing govt. spending by $40 billion
D. decreasing taxes by $4 billion -Correct Answer- B. increasing govt.
spending by $4 billion
In an aggregate demand-aggregate supply diagram, equal decreases in
government spending and taxes will:
A. Shift the AD curve to the left.
B. Not affect the AD curve.
C. Increase the equilibrium GDP.
D. Shift the AD curve to the right. -Correct Answer- A. Shift the AD
curve to the left.
pg. 4
ASU ECON 211 FINAL EXAM NEWEST 2026 ACTUAL
EXAM TEST BANK| ECON 211 FINAL EXAM PREP
(ASU) WITH COMPLETE 550 REAL EXAM QUESTIONS
AND CORRECT VERIFIED ANSWERS/ ALREADY
GRADED A+ (MOST RECENT!!)
In the economy of Talikastan in 2015, exports were $500, GDP was
$6400, Government Purchases were $1700, Imports were $400, and
investment was $1800. What was Talikastan's consumption in 2015?
A. $2000
B. $3800
C. $2800
D. $3000 -Correct Answer- A. $2000
A tire manufacturer produces 400 tires valued at $20 each. Three
hundred tires are sold to a tire shop, which then sells them to households
for $50 each. The remaining tires are unsold and are added to the tire
manufacturer's inventory. How much is added to GDP.
A. $13,000
B. $15,000
C. $17,000
D. $8000 -Correct Answer- C. $17,000
pg. 1
,2|Page
If the nominal interest rate is 5% and the rate of inflation is 9%, then the
real interest rate is
A. -0.44 %
B. -4%
C. 4%
D. 14% -Correct Answer- B. -4%
Wholesome Wheat Bakery buys $10.00 worth of flour from Mikes' Mill
and uses the flour to make bread. Wholesome Wheat sells the bread to
the public for $22.00. Taking these two transactions into account, what is
the effect on GDP?
A. GDP increases by $32.00
B. GDP increases by $12.00
C. GDP increases by $10.00
D. GDP increases by $22.00 -Correct Answer- D. GDP increases by
$22.00
The interest rate at which the Federal Reserve Banks lend to commercial
banks is called:
A. Short-term rate
B. Discount rate
C. prime rate
D. federal funds rate -Correct Answer- B. Discount rate
pg. 2
,3|Page
In recent years, the Fed has communicated changes in its monetary
policy by announcing changes in its policy targets for the:
A. growth of the money supply
B. prime interest rate
C. U.S. dollar-foreign currency exchange rate.
D. Federal Funds rate. -Correct Answer- D. Federal Funds rate.
In an effort to avoid recession, the government implements a tax rebate
program , effectively cutting taxes for households. We would expect this
to:
A. increase aggregate demand
B. reduce aggregate supply.
C. affect neither aggregate supply nor aggregate demand.
D. reduce aggregate demand -Correct Answer- A. increase aggregate
demand
If you use cash to purchase a used Honda Civic, you are using money
primarily as:
A. a unit of account
B. a store of value
C. an economic investment
D. a medium of exchange -Correct Answer- D. a medium of exchange
pg. 3
, 4|Page
Suppose the ABC banks has excess reserves of $4,000 and outstanding
checkable deposits of $80,000. If the reserved requirement is 25%, what
is he size of the actual reserves?
A. $84,000
B. $24,000
C. $20,000
D. $16,000
Actual reserve= required+excess reserves. -Correct Answer- B. $24,000
If the MPC in an economy is .9, government could shift the aggregate
demand curve rightward by $40 billion by:
A. increasing taxes by $4 billion
B. increasing govt. spending by $4 billion
C. Increasing govt. spending by $40 billion
D. decreasing taxes by $4 billion -Correct Answer- B. increasing govt.
spending by $4 billion
In an aggregate demand-aggregate supply diagram, equal decreases in
government spending and taxes will:
A. Shift the AD curve to the left.
B. Not affect the AD curve.
C. Increase the equilibrium GDP.
D. Shift the AD curve to the right. -Correct Answer- A. Shift the AD
curve to the left.
pg. 4
