ECON 2030 FINAL EXAM LSU ROUSSEL ECONOMICS
COURSE 2026/2027 | COMPLETE MASTER REVIEW |
GRADED A+ | 100% CORRECT | VERIFIED STUDY SET FOR
GUARANTEED SUCCESS | HIGH-YIELD CONCEPTS, MICRO
& MACRO APPLICATION INSIGHTS FOR EXCELLENCE
Suppose the US economy is operating at full employment. An increase in the
money supply by the Federal Reserve will cause ____ in real GDP and and
_____ in the aggregate price level in the short run. - CORRECT ANSWER -
A) decrease; increase
B) increase; decrease
*C) increase; increase*
D) increase; no change
E) decrease; decrease
In the US the nominal interest rate tends to move pro cyclically. This means that
as ____ increases, the nominal interest rate ____, everything else held constant.
- CORRECT ANSWER - A) real GDP; decreases
B) inflation rate; increases
*C) real GDP; increases*
D) inflation rate; decreases
E) real interest rate; increases
In which of the following situations is the expected rate of inflation the highest?
- CORRECT ANSWER - A) real interest rate is 1% and nominal interest rate
is 1%.
*B) real interest rate is 3% and nominal interest rate is 7%.*
C) Real interest rate is 11% and nominal interest rate is 8%.
D) real interest rate is 8% and the nominal interest rate is 9%.
,E) real interest rate is 15% and nominal interest rate is 13%.
Suppose the US economy is operating below full employment. A decrease in
government spending will cause the _____ gap to _____ in the short run,
everything else held constant. - CORRECT ANSWER - A) recessionary;
shrink
B) inflationary; shrink
C) inflationary; widen
*D) recessionary; widen*
Suppose Tess is a mother who has become bored with life at home raising her
two-year-old daughter. As a result, she has placed her child in day care, is
available to begin a job immediately., and has been actively seeking
employment for the last six weeks. In this situation, Tess is considered -
CORRECT ANSWER - A) not in labor force
*B) frictionally unemployed*
C) cyclically unemployed
D) structurally unemployed
E) seasonally unemployed
A shortage in the labor market is a feature of _____ gap. The self-correcting
mechanism operated in such a way that this gap will be eliminated, over time,
by ____ in labor costs. - CORRECT ANSWER - A) a recessionary; increase
B) a recessionary; decrease
*C) an inflationary; increases*
D) an inflationary; decrease
Suppose 47-year-old Alan was laid off from his job at the local steel mill six
weeks ago when it closed for routine maintenance. He has not looked for work
during this period, but expects to be recalled when the mill reopens in three
weeks. According to BLS, Alan would be classified as - CORRECT
ANSWER - A) employed
B) not in the labor force
, C) not in the civilian non institutional population
*D) unemployed*
Suppose 28-year-old Scarlett lost her full-time job at a comic book store on
Wednesday of the reference week of the BLS survey. She has submitted several
applications but has not obtained a new job by the end of the week. According
to BLS survey, she is - CORRECT ANSWER - *A) employed*
B) not in the labor force
C) not in the civilian non institutional population
D) unemployed
The aggregate demand curve of a country is negatively sloped because an
increase in the aggregate price level causes the real wealth of the country to ___
and the nominal interest rate to _____. - CORRECT ANSWER - A) increase;
increase
*B) decrease; increase*
C) increase; decrease
D) decrease; decrease
E) remain unchanged; decrease
An increase in foreign income will cause ____ in aggregate demand in the US,
and _____ in the unemployment rate in the US in the short run. - CORRECT
ANSWER - A) increase; increase
B) decrease; increase
C) decrease; decrease
*D) increase; decrease*
An increase in transfer payment is an example of ____ policy action. -
CORRECT ANSWER - A) expansionary monetary
B) contractionary fiscal
COURSE 2026/2027 | COMPLETE MASTER REVIEW |
GRADED A+ | 100% CORRECT | VERIFIED STUDY SET FOR
GUARANTEED SUCCESS | HIGH-YIELD CONCEPTS, MICRO
& MACRO APPLICATION INSIGHTS FOR EXCELLENCE
Suppose the US economy is operating at full employment. An increase in the
money supply by the Federal Reserve will cause ____ in real GDP and and
_____ in the aggregate price level in the short run. - CORRECT ANSWER -
A) decrease; increase
B) increase; decrease
*C) increase; increase*
D) increase; no change
E) decrease; decrease
In the US the nominal interest rate tends to move pro cyclically. This means that
as ____ increases, the nominal interest rate ____, everything else held constant.
- CORRECT ANSWER - A) real GDP; decreases
B) inflation rate; increases
*C) real GDP; increases*
D) inflation rate; decreases
E) real interest rate; increases
In which of the following situations is the expected rate of inflation the highest?
- CORRECT ANSWER - A) real interest rate is 1% and nominal interest rate
is 1%.
*B) real interest rate is 3% and nominal interest rate is 7%.*
C) Real interest rate is 11% and nominal interest rate is 8%.
D) real interest rate is 8% and the nominal interest rate is 9%.
,E) real interest rate is 15% and nominal interest rate is 13%.
Suppose the US economy is operating below full employment. A decrease in
government spending will cause the _____ gap to _____ in the short run,
everything else held constant. - CORRECT ANSWER - A) recessionary;
shrink
B) inflationary; shrink
C) inflationary; widen
*D) recessionary; widen*
Suppose Tess is a mother who has become bored with life at home raising her
two-year-old daughter. As a result, she has placed her child in day care, is
available to begin a job immediately., and has been actively seeking
employment for the last six weeks. In this situation, Tess is considered -
CORRECT ANSWER - A) not in labor force
*B) frictionally unemployed*
C) cyclically unemployed
D) structurally unemployed
E) seasonally unemployed
A shortage in the labor market is a feature of _____ gap. The self-correcting
mechanism operated in such a way that this gap will be eliminated, over time,
by ____ in labor costs. - CORRECT ANSWER - A) a recessionary; increase
B) a recessionary; decrease
*C) an inflationary; increases*
D) an inflationary; decrease
Suppose 47-year-old Alan was laid off from his job at the local steel mill six
weeks ago when it closed for routine maintenance. He has not looked for work
during this period, but expects to be recalled when the mill reopens in three
weeks. According to BLS, Alan would be classified as - CORRECT
ANSWER - A) employed
B) not in the labor force
, C) not in the civilian non institutional population
*D) unemployed*
Suppose 28-year-old Scarlett lost her full-time job at a comic book store on
Wednesday of the reference week of the BLS survey. She has submitted several
applications but has not obtained a new job by the end of the week. According
to BLS survey, she is - CORRECT ANSWER - *A) employed*
B) not in the labor force
C) not in the civilian non institutional population
D) unemployed
The aggregate demand curve of a country is negatively sloped because an
increase in the aggregate price level causes the real wealth of the country to ___
and the nominal interest rate to _____. - CORRECT ANSWER - A) increase;
increase
*B) decrease; increase*
C) increase; decrease
D) decrease; decrease
E) remain unchanged; decrease
An increase in foreign income will cause ____ in aggregate demand in the US,
and _____ in the unemployment rate in the US in the short run. - CORRECT
ANSWER - A) increase; increase
B) decrease; increase
C) decrease; decrease
*D) increase; decrease*
An increase in transfer payment is an example of ____ policy action. -
CORRECT ANSWER - A) expansionary monetary
B) contractionary fiscal
