1 AD/AS – Money –Policy Practice Exam 1 Please check each box to indicate that you have read and followed each of the directions listed below: Fill in your name, user ID, and ID # below. Fill in your ID# and version letter on your Scantron IF YOUR SCANTRON IS NOT FILLED OUT CORRECTLY YOU WILL LOSE 5% ON YOUR EXAM SCORE.You cannot use any notes, textbooks, or other outside materials on this exam. You may use a non-programmable calculator (no cell phones, no iPads, no laptops, no calculators that you can program in like a TI-84+) Put your cell phone on silent mode and keep it in a bag or in your pocket. Hoods, sunglasses, smartwatches and earphones may notbe worn during the exam. No questions will be answered during the exam. You must use a pencil to fill in your scantron. You cannot start this exam until instructed to do so. I have read the exam information & instructions belowExam Information & Instructions 1.The following exam is out of 60 points and accounts for 20% of your overall grade in this course. 2.You have 75 minutes to complete this exam. That includes time to fill in your scantron. 3.The exam consists of 30 multiple choice questions each worth 1 point and 6 short answer questions with point values noted on the exam. 4.DO NOT start this exam until instructed to do so. 5.You must read and sign the statement below before starting this exam. Name (First and Last): ___________________________________________ E-mail ID: [email protected]PSU ID: 9-__________________I __________________________________ (print your name) promise to uphold Penn State’s honor code and will not cheat in any way, shape, or form on this exam. I understand that any form of cheating will result in a zero percent on this exam & possible additional punishment. XX __________________________ (Signature) ________________ (Date)
2 Part I – Multiple Choice – 30 points Please choose the best answer from the answer choices given. You must fill in the correct answer on your scantron. Figure 2 1.Refer to Figure 2. Suppose the economy is at point A. If the economy experiences a negative supply shock, where will the eventual short-run equilibrium be? A) A B) B C) C D) D E) A or C 2.Refer to Figure 2. Suppose the economy is at point C. If investment spending decreases in the economy, where will the eventual long-run equilibrium be? AnMOGetshekhttBad.FEeIlo
3 3.________ of unemployment during ________ make it easier for workers to ________ wages.