ECN 221 Business Statistics Review Session Midterm Exam #3 (ALL 40 MULTIPLE CHOICE QUE
AND ANSWERS) NEW COMPLETE VERSION UPDATE FALL 2025|2026 Arizona State Univer
Review Session
Midterm Exam #3
,Exam Details
• 75 mins (during class hours)
• 40 Multiple Choice Questions
• Calculators Allowed (cannot use your computers/tablets/cellphone
• Please get HB (No. 2) Pencils along
• And get your ASU ID (physical or electronic) along
,Question 1
Suppose the size of the multiplier is 7 and the government increases its purchas
$20 billion. Also, suppose the AD curve would shift from AD1 to AD2 if there we
crowding out; the AD curve actually shifts from AD1 to AD3 with crowding out.
suppose the horizontal distance between the curves AD1 and AD3 is $100 billio
extent of crowding out, for any particular level of the price level, is:
A. $40 billion
B. $20 billion
C. $100 billion
D. $140 billion
, Answer 1
Suppose the size of the multiplier is 7 and the government increases its purchas
$20 billion. Also, suppose the AD curve would shift from AD1 to AD2 if there we
crowding out; the AD curve actually shifts from AD1 to AD3 with crowding out.
suppose the horizontal distance between the curves AD1 and AD3 is $100 billio
extent of crowding out, for any particular level of the price level, is:
A. $40 billion
B. $20 billion
C. $100 billion
D. $140 billion
AND ANSWERS) NEW COMPLETE VERSION UPDATE FALL 2025|2026 Arizona State Univer
Review Session
Midterm Exam #3
,Exam Details
• 75 mins (during class hours)
• 40 Multiple Choice Questions
• Calculators Allowed (cannot use your computers/tablets/cellphone
• Please get HB (No. 2) Pencils along
• And get your ASU ID (physical or electronic) along
,Question 1
Suppose the size of the multiplier is 7 and the government increases its purchas
$20 billion. Also, suppose the AD curve would shift from AD1 to AD2 if there we
crowding out; the AD curve actually shifts from AD1 to AD3 with crowding out.
suppose the horizontal distance between the curves AD1 and AD3 is $100 billio
extent of crowding out, for any particular level of the price level, is:
A. $40 billion
B. $20 billion
C. $100 billion
D. $140 billion
, Answer 1
Suppose the size of the multiplier is 7 and the government increases its purchas
$20 billion. Also, suppose the AD curve would shift from AD1 to AD2 if there we
crowding out; the AD curve actually shifts from AD1 to AD3 with crowding out.
suppose the horizontal distance between the curves AD1 and AD3 is $100 billio
extent of crowding out, for any particular level of the price level, is:
A. $40 billion
B. $20 billion
C. $100 billion
D. $140 billion
