pg. 1 Econ 211 Final Exam Prep Test Bank Latest 2025- 2026 with 500 Real Exam Questions and Correct Answers (100% Correct Answers) ASU ECON 211 Final Exam Test Bank Latest 2025 (Brand New!)
If expenditure by the government of a country increases...
a) The gross domestic product of the country will increase
b) The aggregate price level of the country will decrease
c) The country's expenditure on consumption will decrease
d) The unemployment rate in the country will increase - ANSWER-a) The gross
domestic product of the country will increase
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
Note: Actual reserve= required+excess reserves. - ANSWER-B. $24,000
If the MPC in an economy is .9, government could shift the aggregate demand
curve rightward by $40 billion by:
- increasing taxes by $4 billion
- increasing govt. spending by $4 billion 1 / 4
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- Increasing govt. spending by $40 billion
- decreasing taxes by $4 billion - ANSWER-B. increasing govt. spending by $4
billion
In an aggregate demand-aggregate supply diagram, equal decreases in government
spending and taxes will:
- Shift the AD curve to the left.
- Not affect the AD curve.
- Increase the equilibrium GDP.
- Shift the AD curve to the right. - ANSWER-A. Shift the AD curve to the left.
Which one of the following is true about the U.S. Federal Reserve System?
- The Open Market Committee is smaller in size than the Federal Reserve Board.
- There are 14 members of the Federal Reserve Board.
- There are 12 regional Federal Reserve Banks.
- The head of the U.S. Treasury also chairs the Federal Reserve Board. -
ANSWER-C. There are 12 regional Federal Reserve Banks.
Suppose the federal govt. had budget deficits of $40 billion in year 1, and $50 billion in year 2. But had a budget surplus of $20 billion in year 3 and $50 billion in year 4.Also assume that it used its budget surplus' to pay down the public debt.At the end of these four years, the federal Govt.'s public debt would have.
- Decreased by $20 billion
- Increased by $20 billion
- Increased by $90 billion
- decreased by $70 billion - ANSWER-B. Increased by $20 billion
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The amount that a commercial bank can lend is determined by its:
- excess reserves.
- outstanding loans.
- Required reserves.
- outstanding checkable deposits - ANSWER-A. excess reserves.
Which of the following is included in GDP?
- recreational marijuana purchased from a drug dealer by a college student?
- Recreational marijuana purchased and consumber by a man in his attic.
- medical marijuana purchased from a government-run pharmacy by a glaucoma
- All of the above - ANSWER-C. medical marijuana purchased from a
patient.
government-run pharmacy by a glaucoma patient.
you know a candy bar cost five cents in 1962. You also know the CPI for 1962 and the CPI today. Which of the following would you use to compute the price?
- five cents * today's CPI- five cents * CPI in 1962
- five cents * (Today's CPI/ 1962 CPI)
- five cents * (today's CPI - 1962 CPI)/1962 CPI - ANSWER-C. five cents *
B.Five cents *(1962 CPI/ Today's CPI)
(Today's CPI/ 1962 CPI)
If employers are provided a subsidy of $1 per hour for hiring workers,...
a) The equilibrium employment will increase
b) The equilibrium real wage will decrease
c) Labor supply will increase 3 / 4
pg. 4
d) Labor demand will decrease - ANSWER-a) The equilibrium employment will
increase
Counter Cyclical policies....
a) Lead to Hyperinflation
b) Lower output below its potential level
c) Increase the intensity of economic fluctuations
d) Smooth the rate of growth of the economy over time - ANSWER-d) Smooth the
Rate of growth of the Economy over time
Which of the following statements is true?
a) Countercyclical fiscal policy slows down the growth rate of an economy during
an expansion by shifting the labor demand curve to the right
b) Countercyclical fiscal policy stimulates the economy during a recession by
shifting the labor demand curve to the left
c) Countercyclical monetary policy slows down the growth rate of an economy
during an expansion by shifting the labor demand curve to the left
d) Countercyclical monetary policy stimulates the economy during a recession by
shifting the labor demand curve to the left - ANSWER-c) Countercyclical monetary policy slows down the growth rate of an economy during an expansion by shifting the labor demand curve to the left
If the labor demand curve shifts to right due to a government policy during a recession, and if wages are flexible...
a) Real wage will increase
b) Real wages will decrease
c) Unemployment will increase
d) Prices will fall - ANSWER-a) Real wage will increase
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