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ECON 2030 Final Exam Lsu Roussel Questions and Answers 2026

ECON100 Economics — exam and revision material · Other

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Economics exam material, 8 pages. Originally published on StudyMerit.

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8
Academic year
2025/2026
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English

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ECON 2030 FINAL EXAM LSU ROUSSEL 7 studying now 4.7 (7 reviews) Students also studied Social Science Economics Macroeconomics Save Groups Flashcard sets Study guides ECON 2030 FINAL LSU 226 terms Osharqual14 Preview Econ 2030 Final Review Terms (LSU- ... 148 terms mia_helena Preview ACCT 2000 Final Exam EOC Practic ... 200 terms Sierra_Mullen7 Preview ECON 2 59 terms mar 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 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. A) a recessionary; increase B) a recessionary; decrease C) an inflationary; increases D) an inflationary; decrease 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. 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. A) real GDP; decreases B) inflation rate; increases C) real GDP; increases D) inflation rate; decreases E) real interest rate; increases Terms in this set (68) Hide definitions

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In which of the following situations is the expected rate of inflation the highest? 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. A) recessionary; shrink B) inflationary; shrink C) inflationary; widen D) recessionary; widen 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 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 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 _____. 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. A) increase; increase B) decrease; increase C) decrease; decrease D) increase; decrease An increase in transfer payment is an example of ____ policy action. A) expansionary monetary B) contractionary fiscal C) a contractionary monetary D) expansionary fiscal In which of the following situations would it be most advantageous to be saving? A) nominal interest rate is 8% and expected inflation is 8%. B) nominal interest rate is 0% and expected inflation is 4%. C) nominal interest rate is 6% and expected inflation rate is 7%. D) nominal interest rate is 1% and expected inflation rate is -2%. E) nominal interest rate is 3% and expected inflation is 1% Suppose the CPI equaled 100 in 2010, and 110 in 2015, and a typical household income in 2010 was $40,000 and $42,000 in 2015. Between 2010 and 2015, the aggregate price level _____ and real household income _____, everything else held constant. A) decrease; increase B) increase; increase C) increase; decrease D) decrease; decrease

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Suppose over a six-week period you observe the following data for initial weekly unemployment insurance claims in the US: 656,000; 623,00; 637,000; 589,000; 599,000; 577,000. Which describes the state of the labor market in the US during this period? A) contracting B) stagnant C) expanding Suppose a shoe store added domestically-produced shoes to it's inventory in June 2015 because it expected an increase in demand for them. The store miscalculated the preferences of its customers, however, and was not able to sell the shoes until January 2016. The shoes added to the store's inventory in June: A) will be counted in 2016 GDP bc they were sold that year B) will be counted in 2015 GDP as part of consumption C) will be counted in 2015 GDP as part of government spending D) will be counted in 2015 GDP as part of investment Suppose Kinsey purchases a bottle of mineral water at a store in New Orleans and drinks it while walking home. The mineral water was produced in Romania. This purchase will cause ______ in the consumption component of Romanian GDP and _____ in the net exports of the US. A) increase; increase B) decrease; increase C) increase; decrease D) no change; increase E) no change; decrease Suppose the US economy is operating at full employment. A decrease in consumer confidence will cause ____ in the aggregate price level in the short run and ____ in real GDP in the long run. A) decrease; increase B) decrease; no change C) an increase; increase D) increase; no change E) decrease; decrease Suppose Barbara, a self-employed graphic artist, buys ink for her color copier that she uses to produce posters. Suppose further that she sells the posters to her clients. The new ink: A) would be included in GDP as part of consumption B) would be included in GDP as part of government spending C) would not be included in GDP because it is an intermediate good D) would be included in GDP as part of investment Suppose the US economy is operating at full employment. An increase in labor cost will cause ____ in the unemployment rate in the short run and ____ in the aggregate price level in the long run. A) decrease; no change B) increase; increase C) decrease; decrease D) increase; decrease E) increase; no change Suppose the US economy is operating at full employment. A decrease in taxes will cause _____ in real GDP in the short run and ____ in the unemployment rate in the long run. A) increase; no change B) decrease; increase C) decrease; no change D) increase; decrease E) increase; increase Government spending is a ____ variable; the unemployment rate is a ____ variable. A) stock; flow B) flow; flow C) flow; stock D) stock; stock In Febrauary 2016, the unemployment rate in the US was ____ it was in January 2016. B) the same as

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