ECON 2305/ECON2305 - EXAM 3 ALL ANSWERS SOLVED FALL-2021/2022 SOLUTION 100% CORRECT GUARANTEED GRADE A+

1. Refer to this graph. Which one of the following shocks could have caused this to happen? a. an increase in the amount of money in circulation b. a decrease in consumer confidence c. more government spending d. an increase in the supply of labor 2. P- price level, Q- real GDP, and U = the unemployment rate. If the economy is in equilibrium and then the AD curve shifts leftward, we expect to see the following outcome in the short run: a. P down Q down U up 3. Refer to this graph. Which one of the following shocks could have caused this to happen? a. improvements in economic conditions in other countries b. a decrease in the amount of money in circulation c. *an increase in marginal tax rates d. increased competition 4. If Americans decide to buy more French goods, our demand for Euros in the foreign exchange market will a. rise b. Fall 5. Assume that it used to take 5 cents to buy 1 peso but that it now takes 7 cents to buy 1 peso. The value of the dollar over this period has a. risen b. fallen 6. Assume that it used to take $1 to buy 25 Czech korunas but that now if you spend $1 you only get 23 Czech korunas. The value of the dollar over this period has a. risen b. fallen 7. Assume that you used to get 6.3 Chinese yuan for $1 but that now you get 7 Chinese yuan for $1. The value of the dollar over this period has a. fallen b. risen 8. If the value of the dollar rises then a. AD will shift rightward b. AD will shift leftward 9. If the dollar appreciates then a. our exports will rise b. our exports will fall 10. Which country is likely to have a higher living standard, ceteris paribus? a. Country Y where the legal system protects individual rights and enforces contracts b. Country X where the legal system does not protect individual rights or enforce contracts 11. In China's collectivization movement from 1955 to 1957, the Chinese government directed peasants to give their draft animals (oxen) to community collectives. In response to this directive, many peasants a. bought tractors to replace the draft animals b. sold their draft animals to foreigners c. sold their draft animals to their neighbors d. killed their draft animals and kept the meat and hides e. killed their draft animals to protest the government's action //Cowen, Tyler. "Draft Animals as Common Property Marginal Revolution. Sep 29, 2017 12. Which country is likely to have a higher living standard, ceteris paribus? a. Country Y where the financial system functions well to channel funds from savers to borrowers b. Country X where the financial system does not function well 13. Today, the main reason that North Korea has far fewer lights when viewed from outer space than South Korea is that a. North Korea has less available energy than South Korea b. North Korea's population is more dispersed than South Korea's c. North Korea has different institutions than South Korea d. North Korea has fewer people than in South Korea