Sample Final Exam

Sample Final Exam - Winter 2007 Econ 201 SAMPLE FINAL EXAM:...

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Winter 2007 Econ 201 SAMPLE FINAL EXAM: This test has exactly the same number of questions as the actual final exam. There are 30 multiple choice questions and 11 short answer questions for a total of 80 points. You can use the formula sheet (on the last page) while you do the sample exam – you will also have the same formula sheet during the actual final exam. Please note that this sample final is of necessity heavily based on the very last few topics we did in class so that you can get enough practice with these topics. Of course the actual final will be based on the entire material done in this course. Please remember that your time limit for this exam is 2 hours. The time limit is strict. On the actual final, you will get two hours and 10 minutes, because there will be an extra bonus question worth 3 points (that could potentially make your final exam score 83/80). Multiple Choice Section (30 questions for 30 points): Answer All Questions 1. Crowding out occurs when a. increased taxes force higher levels of national saving. b. deficit spending by the government forces private investment spending to contract. c. local businesses cannot get government contracts because of the higher bids of large corporations. d. foreign investors are willing to pay higher prices for U.S. bonds than American citizens will pay. Graph 28-1 Use the figure shown for the following question. 2. Refer to Graph 28-1. When the money supply curve shifts from MS 1 to MS 2 , a. The equilibrium price level decreases. b. The opportunity cost of holding money decreases. c. The supply of money has decreased. d. The demand for goods and services will decrease. 3. A monetary contraction by the Fed a. increases interest rates and increases aggregate demand. b. increases interest rates and decreases aggregate demand. c. decreases interest rates and decreases aggregate demand. d. decreases interest rates and increases aggregate demand. 1
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For the following question, use the figure shown. 4. Refer to Graph 32-2. Which of the following would cause the aggregate demand curve to shift from AD 1 to AD 2 ? a. Expansionary fiscal policy. b. A positive expenditure multiplier effect. c. Crowding out. d. A monetary expansion. Figure 9-6 5. In Figure 9-6, which segment of the aggregate supply curve has the largest multiplier effect? a. AB b. BC c. CD d. DG 6. Misery-Land is closed economy. The Central Bank of Misery-Land carries out expansionary monetary policy that lowers interest rates in the country. As a result, a. Misery-Land’s currency will appreciate. b. Misery-Land’s currency will depreciate. c. Misery-Land will experience a net capital outflow. d. Misery-Land will not experience any capital outflows. 2
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This note was uploaded on 05/05/2008 for the course ECON 201 taught by Professor Witte during the Winter '08 term at Northwestern.

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Sample Final Exam - Winter 2007 Econ 201 SAMPLE FINAL EXAM:...

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