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  3. Liberty ECON 214 Exam 4 Answers Complete Solutions

Contents

  • 1 Liberty ECON 214 Exam 4 Answers Complete Solutions
      • 1.0.1 Question 1
      • 1.0.2 Question 2
      • 1.0.3 Question 3
      • 1.0.4 Question 6
      • 1.0.5 Question 7
    • 1.1 STATUS
      • 1.1.1 Question 8
      • 1.1.2 Question 9
      • 1.1.3 Question 12
      • 1.1.4 Question 17
      • 1.1.5 Question 19
      • 1.1.6 Question 20
      • 1.1.7 Question 21
      • 1.1.8 Question 23
      • 1.1.9 Question 24
      • 1.1.10 Question 26
      • 1.1.11 Question 32
      • 1.1.12 Question 33
      • 1.1.13 Question 34
      • 1.1.14 Question 39
      • 1.1.15 Question 40

Liberty ECON 214 Exam 4 Answers Complete Solutions

 

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Question 1

Many people argue that certain industries, such as weapons, energy, and transportation, should be protected by trade barriers in the interest of:

Question 2

The figure below depicts the three possible aggregate demand curves. If the Bank of Canada (the Canadian central bank) ____________, the Canadian dollar will depreciate and the aggregate demand curve will shift from AD2 to ____________.

Question 3

Unexpected inflation harms workers and other resource suppliers who have _________ prices in the _________ run.

Question 6

Which of the following situations will arise in the domestic market following the removal of an import quota?

Question 7

Refer to the following figure to answer the questions that follow: According to the figure, if the policy is fully expected, expansionary monetary policy will cause an economy initially in full­employment equilibrium to see its price level:

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Question 8

Assume that a country currently has a trade surplus. If that country experiences an expansion in economic activity, what would we expect to happen to the trade surplus?

Question 9

If a currency becomes ___________ valuable in world markets, then its price falls, and this decrease is called ____________.

Question 12

The United States feels that it has become too dependent on oil from Saudi Arabia, so it charges a tax of $10 per barrel on oil that can be imported from Saudi Arabia. This is an example of a(n):

Question 17

Use the following graph to answer the questions that follow. If this is a nontrading (closed) economy, the number of TVs exchanged (in thousands) will be:

Question 19

Which of the following figures illustrates the effects of contractionary monetary policy on the loanable funds market?

Question 20

Expansionary monetary policy ____________ interest rates, which can be shown in the ______________________.

Question 21

Use the following scenario to answer the questions that follow: Amy can produce either 5,000 pounds of cheese or 20 houses per year. Jim can produce either 5,000 pounds of cheese or 10 houses per year. Amy’s opportunity cost of producing one pound of cheese is _____________ house(s).

Question 23

Only the short­run Phillips curve is downward sloping because:

Question 24

_____________ exchange rates are exchange rates that are fixed at a certain level through the actions of a government.

Question 26

The following table shows the number of U.S. dollars required to buy one British pound between September 3, 2012, and April 1, 2013. Use this table to answer the questions that follow: Between January 1, 2013, and March 1, 2013, the U.S. dollar ___________ against the British pound, and the British pound ___________ against the U.S. dollar.

Question 32

Which of the following explains contractionary monetary policy in the long run?

Question 33

To avoid the negative effects of unexpected inflation, workers have an incentive to:

Question 34

If interest rates in Australia decrease relative to the rest of the world, it means that (1) Australian bonds will provide a ___________ return than previously and (2) ___________ for these bonds will _____________.

Question 39

Central banks can use monetary policy to:

Question 40

Which of the following statements about expectations theory is true?

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