ECN 211 FINAL EXAM 2026 QUESTIONS WITH 100%
CORRECT ANSWERS | LATEST UPDATE 2026/2027 |
GRADED A+ | ASSURED PASS | VERIFIED STUDY GUIDE.
◉ Expansionary monetary policy aids the economy by Answer:
encouraging exports through a lower exchange rate.
◉ A recession is technically defined by the change in the
unemployment rate. (T/F) Answer: False
◉ What does it mean for the government to be the "spender of last
resort?" Answer: When no economic actor is spending, government
can keep income from falling.
◉ What typically happens to the unemployment rate in a recession?
Answer: It rises after the recession has started and can continue
being high once the recession is technically over.
What is the main cause of the persistent trade deficits run by the
U.S.? Answer: Low individual and government savings
, The 2017 Tax Cut and Jobs Act was enacted with the hope that, by
cutting tax rates for corporations, it would lead to a surge in
investment. Using S-I=X-M, what would the effects have been on the
trade deficit from the expected change in tax revenue and hoped for
investment? Answer: The trade deficit would have increased, as the
decrease in tax revenue and rise in investment would have led to a
widening trade deficit.
◉ From the late 1970s through the early 1990s, U.S. growth was
helped by the entrance of women into the labor force in greater
numbers (as well as the baby boomers). How do we use our growth
equation (Y/N) to explain this effect? Answer: It's an increase in
W/N
◉ The level of GDP per capita and its growth rate are always higher
in rich countries, compared to poor countries. (T/F) Answer: False
◉ All of the following are reasons to be worried about rising U.S.
national debt EXCEPT which? Answer: It will lead to rising interest
rates and, potentially, a crisis.
CORRECT ANSWERS | LATEST UPDATE 2026/2027 |
GRADED A+ | ASSURED PASS | VERIFIED STUDY GUIDE.
◉ Expansionary monetary policy aids the economy by Answer:
encouraging exports through a lower exchange rate.
◉ A recession is technically defined by the change in the
unemployment rate. (T/F) Answer: False
◉ What does it mean for the government to be the "spender of last
resort?" Answer: When no economic actor is spending, government
can keep income from falling.
◉ What typically happens to the unemployment rate in a recession?
Answer: It rises after the recession has started and can continue
being high once the recession is technically over.
What is the main cause of the persistent trade deficits run by the
U.S.? Answer: Low individual and government savings
, The 2017 Tax Cut and Jobs Act was enacted with the hope that, by
cutting tax rates for corporations, it would lead to a surge in
investment. Using S-I=X-M, what would the effects have been on the
trade deficit from the expected change in tax revenue and hoped for
investment? Answer: The trade deficit would have increased, as the
decrease in tax revenue and rise in investment would have led to a
widening trade deficit.
◉ From the late 1970s through the early 1990s, U.S. growth was
helped by the entrance of women into the labor force in greater
numbers (as well as the baby boomers). How do we use our growth
equation (Y/N) to explain this effect? Answer: It's an increase in
W/N
◉ The level of GDP per capita and its growth rate are always higher
in rich countries, compared to poor countries. (T/F) Answer: False
◉ All of the following are reasons to be worried about rising U.S.
national debt EXCEPT which? Answer: It will lead to rising interest
rates and, potentially, a crisis.
