1
AGEC 105 Optional Final Questions with Answers (100%
Correct Answers)
Consumption expenditures includes: Answer: purchase of airline
tickets,
purchase of new automobiles,
purchase of food
ALL OF THE ABOVE
The marginal propensity to save is equal to: Answer: one minus the
marginal propensity to consume
The economy's aggregate supply curve includes: Answer: a classical
range,
a normal range,
a Keynesian or depression range
ALL OF THE ABOVE
An inflationary gap occurs in the economy when: Answer: general
equilibrium output is greater than full employment output
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,2
As the U.S. dollar appreciates in value, the price of goods expressed in
foreign currency increases resulting in: Answer: a decline in the
demand for U.S. goods by other nations,
a decline in U.S. commodity prices,
a loss of U.S. market share in global export markets
ALL OF THE ABOVE
The functions of money include: Answer: a medium of exchange,
a store of value,
a unit of accounting
ALL OF THE ABOVE
Contractionary monetary policy actions by the federal reserve system
include: Answer: selling government securities to banks and their
depositors
the national debt: Answer: is equal to the national debt at the
beginning of the year plus a budget deficit occurring during the
current year
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, 3
Automatic fiscal policy instruments include: Answer: unemployment
compensation
Leading indicators of activity in the economy include: Answer: new
building permits
The consumer price index or CPI includes: Answer: the cost of a
standard market basket bought by consumers in the current year
relative to a base period.
The short run Phillips curve illustrates: Answer: the trade-off between
the unemployment rate and the inflation rate
Which of the following statements is correct: Answer: Demand
expansion policies increase GDP and decrease the general price level,
supply expansion policies increase GDP and increases the general
price level,
Demand and supply policies move the general price level in the same
direction,
NONE OF THE ABOVE
© 2025 All rights reserved
AGEC 105 Optional Final Questions with Answers (100%
Correct Answers)
Consumption expenditures includes: Answer: purchase of airline
tickets,
purchase of new automobiles,
purchase of food
ALL OF THE ABOVE
The marginal propensity to save is equal to: Answer: one minus the
marginal propensity to consume
The economy's aggregate supply curve includes: Answer: a classical
range,
a normal range,
a Keynesian or depression range
ALL OF THE ABOVE
An inflationary gap occurs in the economy when: Answer: general
equilibrium output is greater than full employment output
© 2025 All rights reserved
,2
As the U.S. dollar appreciates in value, the price of goods expressed in
foreign currency increases resulting in: Answer: a decline in the
demand for U.S. goods by other nations,
a decline in U.S. commodity prices,
a loss of U.S. market share in global export markets
ALL OF THE ABOVE
The functions of money include: Answer: a medium of exchange,
a store of value,
a unit of accounting
ALL OF THE ABOVE
Contractionary monetary policy actions by the federal reserve system
include: Answer: selling government securities to banks and their
depositors
the national debt: Answer: is equal to the national debt at the
beginning of the year plus a budget deficit occurring during the
current year
© 2025 All rights reserved
, 3
Automatic fiscal policy instruments include: Answer: unemployment
compensation
Leading indicators of activity in the economy include: Answer: new
building permits
The consumer price index or CPI includes: Answer: the cost of a
standard market basket bought by consumers in the current year
relative to a base period.
The short run Phillips curve illustrates: Answer: the trade-off between
the unemployment rate and the inflation rate
Which of the following statements is correct: Answer: Demand
expansion policies increase GDP and decrease the general price level,
supply expansion policies increase GDP and increases the general
price level,
Demand and supply policies move the general price level in the same
direction,
NONE OF THE ABOVE
© 2025 All rights reserved
