Unit 3 check
Unit 3 check: National Income and Price Determination
10 questions from 9 lessons in Unit 3. Answer each one, and if you miss, follow the link back to where it is taught, then try again. Your score counts first tries.
Question 1 · from 3.1 · Sort it
Tap a headline, then tap the kind of spending it changes first.
Consumption
Investment
Government spending
Net exports
Question 2 · from 3.2 · Decide and justify
Households in Country A spend 90 cents of each extra dollar of disposable income. Households in Country B spend 60 cents. Which country has the larger expenditure multiplier?
Which reason supports your choice?
Question 3 · from 3.3 · Sort it
Each event happens on its own. Tap an event, then tap what it does to short-run aggregate supply.
SRAS shifts left
SRAS shifts right
No shift of SRAS
Question 4 · from 3.4 · Multiple choice
Glenrock's real GDP this year is $830 billion. Economists estimate its full-employment output at $800 billion. Which statement best describes Glenrock's economy this year?
Setup for question 5
Merovia is a fictional economy. The graph shows its aggregate demand, short-run aggregate supply and long-run aggregate supply curves this year, with real output in billions of dollars. The table lists where each pair of curves crosses.
Merovia's economy this year
Real output in billions of dollars. LRAS stands at Merovia's full-employment output.
| Curves | Real output ($ billions) | Price level |
|---|---|---|
| AD and SRAS | 840 | 94 |
| AD and LRAS | 900 | 85 |
| SRAS and LRAS | 900 | 97 |
Question 5 · from 3.5 · Calculate
Using the graph and table of Merovia's economy, what is Merovia's output gap, measured as real output minus full-employment output, in billions of dollars? Give a negative number for output below full employment.
Setup for question 6
Ostrava, a fictional economy, was in long-run equilibrium in Year 1. Nothing about government policy changed in Year 2. Its statistics agency reported:
| Measure | Year 1 | Year 2 |
|---|---|---|
| Real GDP (billions of base-year dollars) | 500 | 485 |
| Unemployment rate | 4.5% | 6.0% |
| Price level (Year 1 = 100) | 100 | 106 |
Question 6 · from 3.6 · Fill the statement
Tap a blank, then tap a phrase.
Read from the table, the inflation in Ostrava's Year 2 is inflation, and a likely cause is a rise in .
Question 7 · from 3.7 · Put it in order
An economy is in long-run equilibrium when the world price of natural gas, which fuels power plants and heats factories, rises sharply. Full-employment output does not change, and no policy action is taken. Tap the steps in the order they happen.
Question 8 · from 3.8 · Decide and justify
In Sorrel, the unemployment rate is 3.1 percent, the natural rate of unemployment is 4.6 percent, and prices are rising quickly. Which kind of fiscal policy should Sorrel's government use?
Which reason supports your choice?
Setup for question 9
Unemployment insurance in the United States pays benefits to eligible workers who lose their jobs. Most of it runs under state and federal rules already in law when a recession starts, but Congress can also vote changes during a downturn.
The table uses figures from FRED, the Federal Reserve Bank of St. Louis database, read on October 14, 2026. The unemployment rate is the average of the year's twelve monthly rates. All benefits is the Bureau of Economic Analysis total of unemployment insurance benefits paid to persons. Emergency benefits is the part of that total paid by emergency unemployment compensation, a program Congress created in a law approved June 30, 2008.
That program is not the only vote inside these numbers. The American Recovery and Reinvestment Act, approved February 17, 2009, extended the emergency program, added $25 a week to regular benefits, had the federal government pay the full cost of extended benefits for the rest of 2009, and lengthened extended benefits for railroad workers. The emergency column counts only the emergency program, so the $25 a week and the other 2009 changes are not in it, and these figures cannot separate them from benefits paid under the old rules.
| 2007 | 2009 | |
|---|---|---|
| Unemployment rate (average) | 4.6% | 9.3% |
| All benefits (billions of dollars) | 32.7 | 131.2 |
| Emergency benefits (billions of dollars) | 0.0 | 44.0 |
The table stops before 2020, when the mix is far harder to read. In the monthly version of the all-benefits total, benefits rose from $25.7 billion in February 2020 to $1,366.1 billion in June 2020, both at a seasonally adjusted annual rate. But the CARES Act, approved March 27, 2020, added $600 a week to regular benefits, and the series does not separate that vote from the automatic rise.
Sources: FRED series UNRATE, W825RC1A027NBEA, B1590C1A027NBEA and W825RC1.
Question 9 · from 3.9 · Multiple choice
U.S. unemployment insurance paid $131.2 billion in benefits in 2009, with unemployment averaging 9.3%. Suppose households and businesses then spend more each year, hiring picks up for several years, and no law about benefits changes. What happens to benefits paid, and why?
Question 10 · from 3.1 · Match
Tap a reason a demand curve slopes down, then tap the chain of events that goes with it.
0 of 10 answered.