ECO 372 Final Exam Guide Latest/ECO 372 Final Exam Guide Latest
1. Martha lends $200 to a friend who promises to return it after a year. Instead of lending it to her friend, Martha could have put the money in a bank where she could have earned an interest rate of 2 percent per annum. Martha’s opportunity cost of lending the money is _____.
$2
$204
$200
$4
2. The exhibit given below shows the short-run aggregate demand and supply curves in an economy, AD1 and AS1, and the long-run aggregate supply curve, LRAS. The economy was initially in equilibrium when there was a decrease in aggregate demand, causing a shift of the aggregate demand curve from AD1 to AD2. Which of the following is true in this case?
The economy will move from point B to point A in the short run and then to point C in the long run
The economy will move from point C to point B in the short run and then eventually to point A
The economy will move from point D to point A in the short run and then to point C in the long run
The economy will move from point D to point C in the long run.
3. Suppose an economy is in long-run equilibrium. An increase in consumption expenditure will:
shift the short-run aggregate supply curve rightward and increase both the price level and real output in the long run.
decrease both the price level and real gross domestic product in the long run.
We've got everything to become your favourite writing service
Money back guarantee
Your money is safe. If we fail to satisfy your expectations, you can always request a refund and get your money back.
Confidentiality
We don’t share your private information with anyone. What happens on our website stays on our website.
Our service is legit
We provide you with a sample paper on the topic you need, and this kind of academic assistance is perfectly legitimate.
Get a plagiarism-free paper
We check every paper with our plagiarism-detection software, so you get a unique paper written for your particular purposes.
We can help with urgent tasks
Need a paper tomorrow? We can write it even while you’re sleeping. Place an order now and get your paper in 8 hours.
Pay a fair price
Our prices depend on urgency and level of study. If you want a cheap essay, place your order with as much time as possible. Our prices start from $11 per page.