1|Page
ECON 104 BILL GOFFE FINAL EXAM
PREP NEWEST 2026 2027 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND
ANSWERS ALREADY GRADED A+
GDP - - ANS✔️--the market value of all FINAL goods and services produced in a country during
a period of time.
GDP equation - - ANS✔️--GDP(Y)=C (consumption) + I (investments) +G (gov purchases) +NX
(net exports)
Consumption - - ANS✔️--expenditures made by households (excluding the purchase of a new
house)
,2|Page
Investment - - ANS✔️--Final goods and services purchased by business firms (equipment for
production and new buildings), changes in inventories (which is thee difference between
production and sales), and residential construction purchased by households.
Government Purchase - - ANS✔️--Spending by the federal, state, and local governments
Net Exports - - ANS✔️--Exports-imports
Real GDP - - ANS✔️--Value of economic output adjusted for inflation or deflation
Nominal GDP - - ANS✔️--GDP evaluated at current market prices which doesn't account for
inflation/deflation
intermediate goods - - ANS✔️--a good that is transformed in the production process
EX: flour gets turned into bread, therefore it is an intermediate good
final goods - - ANS✔️--finished products purchased by the final user
U.S. GDP 2016 (2nd quarter) - - ANS✔️--$18.4 Trillion
GDP per capita - - ANS✔️--Measure of average income per person in a country per year
, 3|Page
U.S. GDP per capita 2016 - - ANS✔️--$55,800
Money $$$$$$$$$ - - ANS✔️--An asset that does each of the following:
1.) Medium exchange used for purchases
2.) A store of value
3.) Unit of accounting
4.) Standard of deferred payment
M1 - - ANS✔️--Cash and checkable deposits
M2 - - ANS✔️--M1+ Savings Accounts
Interest Rate - - ANS✔️--rate at which money is borrowed and lended
FED's Dual Mandate - - ANS✔️--To promote effectively the goals of 1)maximum employment,
2)stable prices, and moderate long-term interest rates
Monetary Policy - - ANS✔️--Changes in the interest rates,M1, and M2 to achieve dual mandate
goals
Fiscal Policy - - ANS✔️--Changes in federal taxes and expenditures. Controlled by President and
Congress
ECON 104 BILL GOFFE FINAL EXAM
PREP NEWEST 2026 2027 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND
ANSWERS ALREADY GRADED A+
GDP - - ANS✔️--the market value of all FINAL goods and services produced in a country during
a period of time.
GDP equation - - ANS✔️--GDP(Y)=C (consumption) + I (investments) +G (gov purchases) +NX
(net exports)
Consumption - - ANS✔️--expenditures made by households (excluding the purchase of a new
house)
,2|Page
Investment - - ANS✔️--Final goods and services purchased by business firms (equipment for
production and new buildings), changes in inventories (which is thee difference between
production and sales), and residential construction purchased by households.
Government Purchase - - ANS✔️--Spending by the federal, state, and local governments
Net Exports - - ANS✔️--Exports-imports
Real GDP - - ANS✔️--Value of economic output adjusted for inflation or deflation
Nominal GDP - - ANS✔️--GDP evaluated at current market prices which doesn't account for
inflation/deflation
intermediate goods - - ANS✔️--a good that is transformed in the production process
EX: flour gets turned into bread, therefore it is an intermediate good
final goods - - ANS✔️--finished products purchased by the final user
U.S. GDP 2016 (2nd quarter) - - ANS✔️--$18.4 Trillion
GDP per capita - - ANS✔️--Measure of average income per person in a country per year
, 3|Page
U.S. GDP per capita 2016 - - ANS✔️--$55,800
Money $$$$$$$$$ - - ANS✔️--An asset that does each of the following:
1.) Medium exchange used for purchases
2.) A store of value
3.) Unit of accounting
4.) Standard of deferred payment
M1 - - ANS✔️--Cash and checkable deposits
M2 - - ANS✔️--M1+ Savings Accounts
Interest Rate - - ANS✔️--rate at which money is borrowed and lended
FED's Dual Mandate - - ANS✔️--To promote effectively the goals of 1)maximum employment,
2)stable prices, and moderate long-term interest rates
Monetary Policy - - ANS✔️--Changes in the interest rates,M1, and M2 to achieve dual mandate
goals
Fiscal Policy - - ANS✔️--Changes in federal taxes and expenditures. Controlled by President and
Congress
