1|Page
ECON 200 UOFA Exam 3 Newest 2025/2026 Complete
Questions And 100%Correct Answers (Verified And
Graded A+||Brand New)
33) Which of these solutions is the BEST way to avoid the
buildup of debt?
A) Match the growth of the money supply to the long-run
growth of the economy
B) Balance the budget over the course of the business
cycle
C) The Federal Reserve creates hyperinflation to make the
debt worthless
D) Give the President a line item veto on everything
Congress passes - ANSWER-Balance the budget over the
course of the business cycle
,2|Page
The US National Debt is approximately
A) 180 million dollars
B) 1.8 billion dollars
C) 18 trillion dollars
D) 180 quadrillion dollars - ANSWER-18 trillion dollars
Which of the following are NOT one of the Federal
Reserve System's four monetary policy goals?
A) price stability
B) high employment
C) constant GDP
D) stability of financial markets and institutions -
ANSWER-C) constant GDP
,3|Page
If the economy is beyond its potential real GDP, which of
the following would be an appropriate policy to slow the
economy and help it return to long-run aggregate supply?
A) increase the money supply
B) increase government purchases.
C) increase taxes
D) increase the deficit - ANSWER-C) increase taxes
Recently oil prices have dropped. Many economists
believe that this unexpected event will cause ____ to
increase in 2015 compared to 2014.
A) AS
B) LRAS
, 4|Page
C) AD - ANSWER-C)AD
When the government tries to expand the economy in a
recession, one reason why this might be more difficult to
achieve than our simple AD/AS depicts is because of
A) automatic stabilizers
B) crowding out
C) low interest rates
D) inflation - ANSWER-B) crowding out
How is GDP measured?A) GDP is measured by adding
the quantities of goods and services produced in a given
year.
B) GDP is measured by adding up all the intermediate
sales throughout the year.
ECON 200 UOFA Exam 3 Newest 2025/2026 Complete
Questions And 100%Correct Answers (Verified And
Graded A+||Brand New)
33) Which of these solutions is the BEST way to avoid the
buildup of debt?
A) Match the growth of the money supply to the long-run
growth of the economy
B) Balance the budget over the course of the business
cycle
C) The Federal Reserve creates hyperinflation to make the
debt worthless
D) Give the President a line item veto on everything
Congress passes - ANSWER-Balance the budget over the
course of the business cycle
,2|Page
The US National Debt is approximately
A) 180 million dollars
B) 1.8 billion dollars
C) 18 trillion dollars
D) 180 quadrillion dollars - ANSWER-18 trillion dollars
Which of the following are NOT one of the Federal
Reserve System's four monetary policy goals?
A) price stability
B) high employment
C) constant GDP
D) stability of financial markets and institutions -
ANSWER-C) constant GDP
,3|Page
If the economy is beyond its potential real GDP, which of
the following would be an appropriate policy to slow the
economy and help it return to long-run aggregate supply?
A) increase the money supply
B) increase government purchases.
C) increase taxes
D) increase the deficit - ANSWER-C) increase taxes
Recently oil prices have dropped. Many economists
believe that this unexpected event will cause ____ to
increase in 2015 compared to 2014.
A) AS
B) LRAS
, 4|Page
C) AD - ANSWER-C)AD
When the government tries to expand the economy in a
recession, one reason why this might be more difficult to
achieve than our simple AD/AS depicts is because of
A) automatic stabilizers
B) crowding out
C) low interest rates
D) inflation - ANSWER-B) crowding out
How is GDP measured?A) GDP is measured by adding
the quantities of goods and services produced in a given
year.
B) GDP is measured by adding up all the intermediate
sales throughout the year.
