ECON 104 Final Exam | Updated Questions
and Answers | Newest 2026 Release
• these are Positive additions to Household wealth -✓✓ 1,000 shares of Microsoft stock,
balance in your checking account, equity in one's home
• which of the following best describes Interest rate effect -✓✓ an increase in price level
raises the interest rate and chokes off investment and consumption spending
• the level of long-run aggregate supply is affected by -✓✓ changes in technology,
changes in number of workers, changes in capital stock
• The level of real GDP in the long run is -✓✓ potential GDP
• how does technology change the short run supply curve -✓✓ to the right
• Increase in inflation expectations shifts SRAS -✓✓ to the left
• A rapid increase in price of oil will shift -✓✓ short run aggregate supply to the left
• Stagflation is often a result of -✓✓ a negative supply shock
• A reason for the decrease in AD that led to the recession 2007 to 2009 -✓✓ the end of
the housing bubble
• What describes the automatic mechanism through which the economy adjusts to long
run equilibrium? -✓✓ the rightward shift of SRAS curve that occurs after a recession
• Wages of workers and the prices of inputs rise more slowly than final goods/services
because -✓✓ firms are often slow to adjust to wages, menu costs make some prices
sticky, contracts make prices and wages sticky
• A barter economy -✓✓ where goods/services are exchanged for other goods/services
• when are willing to accept it in exchange for goods/services sellers -✓✓ medium of
exchange
• a way of measuring value in the economy in terms of money ex "this laptop costs
$1220" -✓✓ unit of account
• Store of Value -✓✓ holding on to something for the future
and Answers | Newest 2026 Release
• these are Positive additions to Household wealth -✓✓ 1,000 shares of Microsoft stock,
balance in your checking account, equity in one's home
• which of the following best describes Interest rate effect -✓✓ an increase in price level
raises the interest rate and chokes off investment and consumption spending
• the level of long-run aggregate supply is affected by -✓✓ changes in technology,
changes in number of workers, changes in capital stock
• The level of real GDP in the long run is -✓✓ potential GDP
• how does technology change the short run supply curve -✓✓ to the right
• Increase in inflation expectations shifts SRAS -✓✓ to the left
• A rapid increase in price of oil will shift -✓✓ short run aggregate supply to the left
• Stagflation is often a result of -✓✓ a negative supply shock
• A reason for the decrease in AD that led to the recession 2007 to 2009 -✓✓ the end of
the housing bubble
• What describes the automatic mechanism through which the economy adjusts to long
run equilibrium? -✓✓ the rightward shift of SRAS curve that occurs after a recession
• Wages of workers and the prices of inputs rise more slowly than final goods/services
because -✓✓ firms are often slow to adjust to wages, menu costs make some prices
sticky, contracts make prices and wages sticky
• A barter economy -✓✓ where goods/services are exchanged for other goods/services
• when are willing to accept it in exchange for goods/services sellers -✓✓ medium of
exchange
• a way of measuring value in the economy in terms of money ex "this laptop costs
$1220" -✓✓ unit of account
• Store of Value -✓✓ holding on to something for the future
