ECON 301 EXAM 2025 QUESTIONS
AND ANSWERS
Aggregate consumption refers to spending on - --CORRECT ANSWER--new
goods and services, ranging from food to haircuts to new cars
in 2009 aggregate consumption declined because - --CORRECT ANSWER--
disposable income fell
The largest component of GDP is - --CORRECT ANSWER--consumption
spending (durables and nondurables)
Disposable income is - --CORRECT ANSWER--income after taxes and transfers
from the government
Fiscal policy describes the choice of __________________by the government. - --
CORRECT ANSWER--spending and taxes
Aggregate consumption in 2025 is - --CORRECT ANSWER--impossible to know
for sure
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, There are two types of money:a. dollar bills and the Eurob. currency and checkable
depositsc. cash and Treasury billsd. coins and dollar bills - --CORRECT
ANSWER--currency and checkable deposits
The federal funds market is a market fora. US treasury debtb. checkable depositsc.
bank reservesd. corporate bonds - --CORRECT ANSWER--bank reserves
In Chapter 5 of the textbook, investment depends on the following two variables:a.
income (Y) and consumption (C)b. the interest rate (i) and Cc. Y and government
spending (G)d. Y and i - --CORRECT ANSWER--Y and i
In the model of Chapter 5, the condition for equilibrium in the goods market is
called the:a. IS relationb. LM relationc. velocity conditiond. invisible hand - --
CORRECT ANSWER--IS relation
Changes in factors that decrease the demand for goodsa. shift the IS curve to the
rightb. shift the IS curve to the leftc. shift the LM curve to upwardd. shift the LM
curve downward - --CORRECT ANSWER--Shift the IS curve left
During the financial crisis of 2008-2009a. consumption fellb. investment fellc. the
Fed reduced interest ratesd. all three (a,b,c) - --CORRECT ANSWER--all three
The civilian labor force includesa. those who working plus members of the armed
forcesb. those who working or looking for workc. those who working or looking
for work plus members of the armed forcesd. only those who are working - --
CORRECT ANSWER--those who are working or looking for work
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
AND ANSWERS
Aggregate consumption refers to spending on - --CORRECT ANSWER--new
goods and services, ranging from food to haircuts to new cars
in 2009 aggregate consumption declined because - --CORRECT ANSWER--
disposable income fell
The largest component of GDP is - --CORRECT ANSWER--consumption
spending (durables and nondurables)
Disposable income is - --CORRECT ANSWER--income after taxes and transfers
from the government
Fiscal policy describes the choice of __________________by the government. - --
CORRECT ANSWER--spending and taxes
Aggregate consumption in 2025 is - --CORRECT ANSWER--impossible to know
for sure
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, There are two types of money:a. dollar bills and the Eurob. currency and checkable
depositsc. cash and Treasury billsd. coins and dollar bills - --CORRECT
ANSWER--currency and checkable deposits
The federal funds market is a market fora. US treasury debtb. checkable depositsc.
bank reservesd. corporate bonds - --CORRECT ANSWER--bank reserves
In Chapter 5 of the textbook, investment depends on the following two variables:a.
income (Y) and consumption (C)b. the interest rate (i) and Cc. Y and government
spending (G)d. Y and i - --CORRECT ANSWER--Y and i
In the model of Chapter 5, the condition for equilibrium in the goods market is
called the:a. IS relationb. LM relationc. velocity conditiond. invisible hand - --
CORRECT ANSWER--IS relation
Changes in factors that decrease the demand for goodsa. shift the IS curve to the
rightb. shift the IS curve to the leftc. shift the LM curve to upwardd. shift the LM
curve downward - --CORRECT ANSWER--Shift the IS curve left
During the financial crisis of 2008-2009a. consumption fellb. investment fellc. the
Fed reduced interest ratesd. all three (a,b,c) - --CORRECT ANSWER--all three
The civilian labor force includesa. those who working plus members of the armed
forcesb. those who working or looking for workc. those who working or looking
for work plus members of the armed forcesd. only those who are working - --
CORRECT ANSWER--those who are working or looking for work
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
