Practice Final (ungraded) · Weeks 1–15 (Objectives 1–8)

Course: Principles of Macroeconomics (ECON 2) · Silver Oak University (fictional sample) · Prof. Ashford
What this is: a low-stakes rehearsal for the cumulative Final. It mirrors the real exam's blueprint — the same coverage across all eight objectives, the same item-type mix, length, and scenario-based difficulty — but is built from fresh item-bank variants and shares none of the live Final's questions.
Settings: ungraded (0 points) · unlimited attempts · feedback shown after submission · opens before the exam window so you can prepare. (Practice; AI is not permitted on the real Final.)

This is the human-readable practice exam with its vetted answer key and feedback (released after submission). The import-ready Classic QTI 1.2 is in O-practice-final-week-16-qti.xml (generated by the shared validated Python script — parses with 25 items, parses clean). The Canvas placement block is at the bottom.

Integrity note for students. Every item here is a fresh variant — new scenarios, different engineered numbers, and different wording — with a pre-vetted answer. None of these are the live Final questions. Working them builds the skill the Final tests, honestly. The paired live exam is L-final-week-16.md.

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Blueprint (mirrors the Final)

Coverage matches the live exam's emphasis: Obj 1 = 2 · Obj 2 = 2 · Obj 3 = 2 · Obj 4 = 1 · Obj 5 = 3 · Obj 6 = 3 · Obj 7 = 6 · Obj 8 = 5 · schools synthesis = 1. (The actual Final items are not listed here — only the shared structure.)

#	Type	Concept	Objective	Source weeks
1	Multiple choice	PPF opportunity cost (quantitative, fresh)	1	1
2	True/False	Positive vs. normative classification (different scenario from L)	1	1
3	Multiple choice	GDP via expenditure approach (quantitative, fresh — trade surplus)	2	2
4	Multiple choice	GDP deflator computation (quantitative, fresh)	2	2
5	Multiple choice	CPI & inflation rate (quantitative, fresh basket)	3	3
6	Multiple choice	Unemployment rate & LFPR (quantitative, fresh)	3	3
7	Multiple choice	Growth rate & rule of 70 (quantitative, fresh)	4	4
8	Multiple choice	AD–AS comparative statics — SRAS shifts left (quantitative, different curve from L)	5	5
9	Multiple choice	Inflationary gap diagnosis (quantitative, fresh — different gap direction from L)	5	6
10	Matching	Policy tool/event → AD–AS effect (different pairs from L)	5	5/6
11	Multiple choice	Spending multiplier (quantitative, fresh MPC)	6	7
12	Multiple choice	Deficit vs. debt (quantitative, fresh)	6	7
13	Multiple choice	Money multiplier & the T-account (quantitative, fresh RR)	7	9
14	Multiple choice	M1 vs. M2 — money-supply concept check	7	9
15	Multiple choice	Money market — Fed tool → MS & r direction (quantitative, sell-bonds scenario)	7	10
16	Matching	Fed policy tool → effect on MS/r (different pairs from L)	7	10
17	Multiple choice	Transmission mechanism — contractionary chain (quantitative, fresh)	7	11
18	Multiple answer	Fiscal vs. monetary policy — which body wields which tool (different option set from L)	7	7/9/10
19	Multiple choice	MV = PQ — quantity theory (quantitative, fresh — money supply falls)	8	12
20	Multiple choice	Expected-inflation shift of the SRPC	8	12
21	Multiple choice	Comparative advantage — opportunity-cost ratios (quantitative, fresh pair)	8	13
22	Multiple choice	Exchange rates — appreciation & NX (quantitative, fresh — dollar appreciates)	8	14
23	Matching	Schools of thought → claim (different framing from L)	1	15
24	True/False	Multiplier formula misconception check	6	7
25	True/False	Own-price change = movement along AD, not a shift	5	5

Objective totals: Obj 1 = 2 (P1, P2) · Obj 2 = 2 (P3, P4) · Obj 3 = 2 (P5, P6) · Obj 4 = 1 (P7) · Obj 5 = 4 (P8, P9, P10, P25) · Obj 6 = 3 (P11, P12, P24) · Obj 7 = 6 (P13–P18) · Obj 8 = 5 (P19, P20, P21, P22) · schools synthesis = 1 (P23) = 25 total. Coverage is proportional to teaching time, weighted toward Objectives 7–8. This practice form mirrors the live final's blueprint but shares none of its items.

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Questions, Key, and Feedback (feedback releases after submission)

Objective 1 — The Macro Perspective, the PPF & Positive vs. Normative

P1 (MC) — PPF opportunity cost. An economy's straight-line PPF runs between 40 units of consumer goods (and 0 capital goods) and 8 units of capital goods (and 0 consumer goods). What is the opportunity cost of producing 1 capital good?
- A. 1/5 of a consumer good
- B. 5 consumer goods ✅
- C. 8 consumer goods
- D. 40 consumer goods
Feedback: Opportunity cost of 1 capital good = (max consumer goods) ÷ (max capital goods) = 40 ÷ 8 = 5 consumer goods. (Pre-verified: 40/8 = 5.) A is the OC of 1 consumer good (8/40 = 1/5 capital good), not the OC of a capital good — the classic flip error.

P2 (T/F) — Positive vs. normative. The statement "the unemployment rate fell to 4.2% this quarter" is a NORMATIVE statement.
- True
- False ✅
Feedback: False. This is a positive statement — a testable, factual claim about what the unemployment rate IS. A normative version would contain a value judgment, e.g., "the government should be satisfied with a 4.2% unemployment rate" ("should" is the tell).

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Objective 2 — Measuring Output: GDP, Real vs. Nominal & the Deflator

P3 (MC) — GDP via the expenditure approach. A fictional economy reports the following (in billions): consumption C = 550, investment I = 220, government spending G = 190, exports X = 160, imports M = 130. Using the expenditure approach, GDP equals —
- A. $1,050 billion
- B. $930 billion
- C. $990 billion ✅
- D. $1,150 billion
Feedback: First, NX = X − M = 160 − 130 = +30 (a trade surplus). Then GDP = C + I + G + NX = 550 + 220 + 190 + 30 = $990 billion. (Pre-verified.) A and D result from arithmetic slips in summing the components; B omits NX entirely.

P4 (MC) — GDP deflator. An economy's nominal GDP this year is $950 billion; its real GDP (in base-year prices) is $760 billion. The GDP deflator equals —
- A. 80
- B. 100
- C. 125 ✅
- D. 760
Feedback: GDP deflator = nominal GDP ÷ real GDP × 100 = 950 ÷ 760 × 100 = 125. (Pre-verified.) A results from flipping the ratio (760 ÷ 950 × 100 = 80) — the classic formula-flip error.

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Objective 3 — Measuring Inflation & Unemployment

P5 (MC) — CPI & inflation rate. A fixed CPI basket costs $130 in the base year (15 apples @ $2 + 25 muffins @ $4). In year 2, the same basket costs $143 (apples now $2.20 each, muffins now $4.40 each). What is the year-2 CPI (base year = 100), and the inflation rate from the base year to year 2?
- A. CPI = 143; inflation = 10%
- B. CPI = 110; inflation = 10% ✅
- C. CPI = 110; inflation = 110%
- D. CPI = 100; inflation = 0%
Feedback: CPI = (year-2 basket cost ÷ base-year basket cost) × 100 = 143 ÷ 130 × 100 = 110. Inflation rate = (110 − 100) ÷ 100 × 100 = 10%. (Pre-verified: 15×2.20 + 25×4.40 = 33 + 110 = 143.) C confuses the CPI level with the inflation rate.

P6 (MC) — Unemployment rate & LFPR. In a fictional economy, the adult (16+) population is 200 million. Of these, 141 million are employed and 9 million are unemployed (actively searching for work). The unemployment rate and the labor-force participation rate (LFPR) are —
- A. Unemployment rate = 9%; LFPR = 70.5%
- B. Unemployment rate = 6%; LFPR = 75% ✅
- C. Unemployment rate = 6%; LFPR = 70.5%
- D. Unemployment rate = 4.5%; LFPR = 75%
Feedback: Labor force = employed + unemployed = 141 + 9 = 150 million. Unemployment rate = 9 ÷ 150 × 100 = 6%. LFPR = labor force ÷ adult population = 150 ÷ 200 × 100 = 75%. (Pre-verified.) A miscomputes the unemployment rate using the adult population instead of the labor force as the denominator.

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Objective 4 — Growth & Productivity

P7 (MC) — Growth rate & the rule of 70. An economy's real GDP rises from $900 billion to $954 billion over one year. Using the rule of 70, approximately how many years would it take real GDP to double if it continued growing at THIS rate?
- A. Growth rate = 6%; years to double ≈ 420 years
- B. Growth rate = 6%; years to double ≈ 11.7 years ✅
- C. Growth rate = 60%; years to double ≈ 1.2 years
- D. Growth rate = 54%; years to double ≈ 1.3 years
Feedback: Growth rate = (954 − 900) ÷ 900 × 100 = 6%. Rule of 70: years to double ≈ 70 ÷ 6 ≈ 11.7 years. (Pre-verified: 54/900 = 0.06 = 6%; 70/6 ≈ 11.67.) A results from the classic error of multiplying instead of dividing.

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Objective 5 — The AD–AS Model, Comparative Statics & Output Gaps

P8 (MC) — AD–AS comparative statics. In an economy, aggregate demand is given by P = 22 − Y/175 and short-run aggregate supply by P = 6 + Y/175 (Y in billions, P a price-level index), giving an initial equilibrium of Y* = 1,400, P* = 14. A sharp, unexpected rise in a key input price then shifts SRAS to P = 10 + Y/175. The new equilibrium is —
- A. Y* = 1,400, P* = 14 (unchanged)
- B. Y* = 1,575, P* = 13 (real output rises, price level falls)
- C. Y* = 1,050, P* = 16 (price level rises, real output falls — stagflation) ✅
- D. Y* = 1,050, P* = 13 (price level falls, real output falls)
Feedback: Setting AD equal to the new SRAS: 22 − Y/175 = 10 + Y/175 → 12 = 2Y/175 → Y* = 1,050. Substituting: P* = 22 − 1,050/175 = 16. (Pre-verified.) A leftward shift of SRAS (from a rising input cost) raises the price level while LOWERING real output — the classic stagflation result. D incorrectly pairs a falling price level with the SRAS-left scenario, which is backwards.

P9 (MC) — Output gap diagnosis. An economy's potential output (Y*) is $1,000 billion. Its actual real GDP this quarter is $1,060 billion. This economy is experiencing —
- A. an inflationary gap of $60 billion (6% of potential) ✅
- B. a recessionary gap of $60 billion (6% of potential)
- C. an inflationary gap of $1,060 billion
- D. no output gap, because actual GDP is close to potential
Feedback: Actual output ($1,060B) is ABOVE potential ($1,000B) → inflationary gap = 1,060 − 1,000 = $60 billion, which is 60 ÷ 1,000 × 100 = 6% of potential. (Pre-verified.) B mislabels the gap direction — actual output is ABOVE, not below, potential, so this is inflationary, not recessionary.

P10 (Matching) — Policy tool/event → AD–AS effect. For each scenario below, pair it with the AD–AS outcome it predicts.
| Event / policy tool | Correct predicted effect |
|---|---|
| A rise in household wealth from a booming stock market that boosts consumer spending | AD shifts right — price level and real output both rise |
| A severe drought that destroys a major agricultural crop, raising food-production costs | SRAS shifts left — price level rises, real output falls (stagflation) |
| A major increase in the economy's capital stock from new factories and equipment | LRAS shifts right — the economy's long-run potential output grows |
| A sharp, unexpected rise in interest rates that discourages business investment | AD shifts left — price level and real output both fall |
Feedback: A wealth-driven spending boost raises consumption, one of AD's own components, shifting AD right. A drought-driven cost shock raises production costs economy-wide, shifting SRAS left (stagflation). New capital stock raises what the economy CAN produce at full employment, shifting LRAS right — a long-run growth event. A rate rise that discourages investment reduces one of AD's own components, shifting AD left. (The distractor "SRAS shifts right" does not belong to any of these four events.)

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Objective 6 — Fiscal Policy, the Multiplier & Deficits vs. Debt

P11 (MC) — Spending multiplier. In an economy with a marginal propensity to consume (MPC) of 0.75, government spending rises by $45 billion. The total change in GDP is —
- A. $33.75 billion
- B. $45 billion
- C. $180 billion ✅
- D. $600 billion
Feedback: Multiplier = 1 ÷ (1 − MPC) = 1 ÷ (1 − 0.75) = 1 ÷ 0.25 = 4. ΔY = ΔG × multiplier = 45 × 4 = $180 billion. (Pre-verified.) A results from multiplying by MPC itself (45 × 0.75) rather than the multiplier.

P12 (MC) — Deficit vs. debt. A government's revenue this year is $610 billion; its spending is $650 billion. The national debt was $1,500 billion before this year. After this year, the debt is —
- A. $1,500 billion — the debt is unaffected by a single year's deficit
- B. $1,540 billion — this year's $40 billion deficit adds to the existing debt ✅
- C. $1,460 billion — the deficit reduces the debt
- D. $650 billion — the debt resets to this year's spending total
Feedback: Deficit = spending − revenue = 650 − 610 = $40 billion (a FLOW, this year only). The debt (a STOCK) accumulates every year's deficit: new debt = 1,500 + 40 = $1,540 billion. (Pre-verified.) C makes the classic error of treating a deficit as if it REDUCES the debt.

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Objective 7 — Money, Banking, the Fed & Monetary Policy

P13 (MC) — Money multiplier & the T-account. A bank receives a new deposit of $5,000. The required reserve ratio (RR) is 20%. What are the required reserves on this deposit, the amount available for the first loan, and the theoretical maximum total money-supply expansion this deposit can support?
- A. Required reserves = $4,000; first loan = $1,000; maximum expansion = $5,000
- B. Required reserves = $1,000; first loan = $4,000; maximum expansion = $25,000 ✅
- C. Required reserves = $1,000; first loan = $4,000; maximum expansion = $20,000
- D. Required reserves = $5,000; first loan = $0; maximum expansion = $25,000
Feedback: Required reserves = deposit × RR = 5,000 × 0.20 = $1,000. First loan = deposit − required reserves = 5,000 − 1,000 = $4,000. Money multiplier = 1/RR = 1/0.20 = 5, so maximum expansion = 5,000 × 5 = $25,000. (Pre-verified.) A swaps the reserve and loan figures. C uses the wrong multiplier value (4 instead of 5).

P14 (MC) — M1 vs. M2. Which of the following best describes the relationship between M1 and M2 as measures of the money supply?
- A. M1 and M2 measure exactly the same set of assets, just under two different names
- B. M1 is the narrowest measure (currency and checkable deposits); M2 is broader, adding savings accounts and other near-money assets that are slightly less liquid ✅
- C. M2 is narrower than M1 because it excludes currency entirely
- D. M1 includes long-term government bonds; M2 does not
Feedback: M1 captures the most liquid forms of money — currency in circulation and checkable (demand) deposits. M2 is broader, adding savings deposits and other near-money assets that are still fairly liquid but slightly less so than M1's components. Neither M1 nor M2 includes long-term bonds (D) — those are financial assets, not part of the money-supply measures taught at the principles level.

P15 (MC) — The money market. Money demand is given by r = 10 − M/150 (M in $B, r in %). The money supply is vertical at M = 900. The Fed then sells government bonds, lowering the money supply to M = 750. What happens to the equilibrium interest rate?
- A. It falls from 5% to 4%, because selling bonds injects money into circulation
- B. It rises from 4% to 5%, because selling bonds withdraws money from the banking system ✅
- C. It stays at 4%, because money demand does not respond to the money supply
- D. It falls from 5% to 4%, because a smaller money supply lowers the price of borrowing
Feedback: At M = 900: r = 10 − 900/150 = 4%. At M = 750: r = 10 − 750/150 = 5%. The Fed selling bonds withdraws reserves from the banking system, shrinking the money supply and RAISING the equilibrium interest rate — from 4% to 5%. (Pre-verified.) A and D reverse the direction — selling bonds always shrinks MS and raises r.

P16 (Matching) — Fed policy tool → effect on MS/r. Pair each Fed action below with the money-supply and interest-rate effect it produces.
| Fed policy action | Correct effect |
|---|---|
| The Fed lowers the discount rate it charges banks | Money supply increases (borrowing from the Fed becomes cheaper); the interest rate tends to fall |
| The Fed reduces the pace at which it sells government bonds on the open market | Money supply increases relative to the prior pace; the interest rate tends to fall |
| The Fed lowers the reserve requirement (RR) | Money supply increases (banks can lend more of each deposit); the interest rate tends to fall |
| The Fed lowers the interest rate it pays banks on reserves (IOR) | Money supply increases (banks prefer lending over holding reserves); the interest rate tends to fall |
Feedback: All four actions here work in the expansionary direction — every one of the Fed's tools can be turned either way, and each has a mirror-image contractionary use (raising the discount rate, selling bonds more aggressively, raising RR, raising IOR). The pattern to remember: anything that makes it cheaper or easier for banks to lend raises MS and lowers r; anything that makes lending more costly or reserves more attractive to hold lowers MS and raises r.

P17 (MC) — Transmission mechanism (contractionary). The Fed sells bonds, lowering the money supply from $900B to $750B, which raises the interest rate from 4% to 5% (a 1-point rise). Investment responds by falling $30 billion for every 1-point rise in the interest rate. If the spending multiplier is 4, what is the total change in real GDP, and what happens to the AD–AS equilibrium?
- A. ΔY = +$30 billion; AD shifts right; P rises and Y rises
- B. ΔY = −$120 billion; AD shifts left; P falls and Y falls ✅
- C. ΔY = −$120 billion; AD shifts right; P falls and Y rises
- D. ΔY = −$30 billion; AD shifts left; no change in P or Y
Feedback: ΔI = −$30 billion (one point of rate rise). ΔY = ΔI × multiplier = −30 × 4 = −$120 billion. The contractionary chain: MS↓ → r↑ → I↓ → AD shifts LEFT → P↓, Y↓. (Pre-verified.) This is every arrow of the expansionary chain reversed.

P18 (Multiple answer — select all that apply) — Fiscal vs. monetary policy. Which of the following are tools of FISCAL policy (wielded by Congress), as opposed to monetary policy (wielded by the Federal Reserve)? Select all that apply.
- A. Congress increasing spending on public infrastructure projects ✅
- B. The Federal Reserve raising the interest rate it pays banks on reserves (IOR)
- C. Congress raising the federal corporate tax rate ✅
- D. The Federal Reserve lowering the reserve requirement for banks
- E. An automatic stabilizer like food-assistance spending automatically rising during a downturn ✅
Feedback: Fiscal policy is wielded by Congress — government spending (A), tax rates (C), and automatic stabilizers built from the tax-and-transfer system (E) are all fiscal tools. B and D are MONETARY policy tools, wielded by the Federal Reserve — a completely different institution with a completely different toolkit.

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Objective 8 — The Phillips Curve, the Quantity Theory & the Open Economy

P19 (MC) — MV = PQ. In an economy, the money supply M = 800, velocity V = 3, and real output Q = 1,200. What is the current price level P, and what happens to P if the money supply FALLS by 5% (holding V and Q fixed)?
- A. P = 3; falls to 2.85
- B. P = 2; falls to 1.9 ✅
- C. P = 2; falls to 1.98
- D. P = 3; stays at 3 (money is always neutral)
Feedback: MV = PQ → PQ = 800 × 3 = 2,400; P = PQ ÷ Q = 2,400 ÷ 1,200 = 2. A 5% fall in M (to 760) with V and Q fixed lowers P proportionally: new P = (760 × 3) ÷ 1,200 = 1.9 (a 5% fall). (Pre-verified.) D is wrong: money's long-run neutrality still means a CHANGE in M directly moves P proportionally — "neutral" describes the long-run relationship between money growth and inflation, not that changes in M have no effect on P.

P20 (MC) — Expected inflation & the Phillips curve. If workers and firms come to expect HIGHER inflation going forward, what happens to the short-run Phillips curve (SRPC)?
- A. The SRPC shifts down/left, meaning any given unemployment rate now comes with LOWER inflation
- B. The SRPC shifts up/right, meaning any given unemployment rate now comes with HIGHER inflation ✅
- C. The SRPC does not shift; only movement along the existing curve is possible
- D. The long-run Phillips curve becomes downward-sloping
Feedback: A rise in expected inflation shifts the entire SRPC up/right — at any given unemployment rate, actual inflation is now higher than before, because expectations get built into wage and price-setting behavior. (Pre-verified concept.) D is wrong: the long-run Phillips curve remains vertical regardless of expectations — expectations shift the SHORT-run curve, not the long-run one.

P21 (MC) — Comparative advantage. Ridgeway can produce 6 units of corn OR 3 units of wool per worker-day. Baytown can produce 10 units of corn OR 2 units of wool per worker-day. Which country has the comparative advantage in WOOL?
- A. Baytown, because it produces more corn overall (absolute advantage)
- B. Ridgeway, because its opportunity cost of 1 unit of wool (2 corn) is lower than Baytown's (5 corn) ✅
- C. Neither country has a comparative advantage, since Baytown has the absolute advantage in corn
- D. Baytown, because it can produce wool in less total labor time
Feedback: Ridgeway's opportunity cost of 1 wool = 6 ÷ 3 = 2 corn. Baytown's opportunity cost of 1 wool = 10 ÷ 2 = 5 corn. Ridgeway's cost (2) is lower than Baytown's (5) → Ridgeway has the comparative advantage in wool. (Pre-verified.) Baytown actually has the absolute advantage in corn (10 > 6) and the comparative advantage in corn as well (its opportunity cost of corn, 0.2 wool, is lower than Ridgeway's 0.5 wool) — comparative advantage is about opportunity cost, never raw output.

P22 (MC) — Exchange rates & net exports. The exchange rate moves from $1 = 8 reals to $1 = 10 reals. What has happened to the dollar, and what is the likely effect on U.S. net exports (holding everything else constant)?
- A. The dollar has appreciated; U.S. net exports fall, because U.S. goods become more expensive abroad and foreign goods become cheaper at home ✅
- B. The dollar has depreciated; U.S. net exports fall
- C. The dollar has appreciated; U.S. net exports rise
- D. The dollar has depreciated; U.S. net exports rise
Feedback: Since $1 now buys MORE reals (8 → 10), the dollar has appreciated. A stronger dollar makes U.S. exports more expensive for foreign buyers and imports cheaper for U.S. buyers, so net exports tend to fall. (Pre-verified.) B and D reverse the appreciation/depreciation direction — always check whether a dollar buys MORE (appreciation) or LESS (depreciation) foreign currency than before.

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Synthesis — Schools of Thought & Agreed Ground (Objective 1 / Week 15)

P23 (Matching) — Schools of thought → claim. Identify the school of macroeconomic thought each claim below belongs to. (This tests what each school CLAIMS — not which school is "right.")
| School | Correct associated claim |
|---|---|
| Keynesian | In a deep recessionary gap, waiting for prices to adjust on their own can be slow and costly, so government spending or tax cuts can help restore full employment sooner |
| Classical / monetarist | Because monetary policy operates with long and variable lags, a steady, rule-based approach (like a stated inflation target) reduces the risk of the Fed itself becoming a source of instability |
| Both schools agree | Sustained high inflation is, in the long run, driven by excessive money-supply growth relative to output growth |
Feedback: Keynesians emphasize that recessionary gaps can persist and that active fiscal policy can shorten them. Classical/monetarist economists emphasize the risks of discretionary policy given long and variable lags, favoring rules. Both schools accept certain agreed-ground positive results — such as the long-run link between excessive money growth and inflation — even while disagreeing sharply on the appropriate speed and style of policy response. This item reports each school's position; it does not render a verdict.

P24 (T/F) — Multiplier formula misconception check. True or False: The spending multiplier is calculated as 1 divided by the marginal propensity to consume (1/MPC).
- True
- False ✅
Feedback: False. The spending multiplier is 1 ÷ (1 − MPC), not 1/MPC. At MPC = 0.8, the correct multiplier is 1/(1−0.8) = 5, while the incorrect 1/MPC formula would give 1/0.8 = 1.25 — a very different (and wrong) number. This is one of the most common formula-confusion errors in the fiscal-policy unit.

P25 (T/F) — Movement along vs. shift of AD. True or False: A change in the overall price level, by itself, causes the AD curve to SHIFT — it is not simply a movement along the existing curve.
- True
- False ✅
Feedback: False. The price level is AD's own-axis variable — a change in the price level itself is a movement ALONG the existing AD curve (via the wealth, interest-rate, and exchange-rate effects), not a shift of the whole curve. Only a change in a determinant of AD (such as consumer confidence, investment, government spending, net exports, or a policy change) shifts the curve itself.

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Answer Key (quick reference)

Q	Answer	Q	Answer
P1	B (5 consumer goods per capital good)	P14	B (M1 narrow; M2 broader)
P2	False (this IS a positive statement)	P15	B (r rises 4%→5% after Fed sells)
P3	C ($990B GDP; NX = +30)	P16	discount↓→MS↑r↓ / buy→MS↑r↓ / RR↓→MS↑r↓ / IOR↓→MS↑r↓
P4	C (deflator = 125)	P17	B (ΔY=−$120B; AD left; P↓Y↓)
P5	B (CPI=110; inflation=10%)	P18	A, C, E (fiscal = Congress)
P6	B (u-rate 6%; LFPR 75%)	P19	B (P=2; falls to 1.9)
P7	B (growth 6%; ≈11.7 years to double)	P20	B (expected inflation↑ → SRPC up/right)
P8	C (Y*=1,050, P*=16 — stagflation)	P21	B (Ridgeway has CA in wool; OC 2<5)
P9	A (inflationary gap $60B, 6%)	P22	A (dollar appreciated; NX falls)
P10	right/left/right/left, as above	P23	Keynesian→activism / Classical→rules / Both→money growth & LR inflation
P11	C ($180B — mult. of 4)	P24	False (multiplier is 1/(1−MPC), not 1/MPC)
P12	B ($1,540B new debt)	P25	False (own-price change = movement along, not a shift)
P13	B (reserves $1,000; loan $4,000; max $25,000)

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Quality Gate (self-checked)

• Mirror check: 25 items, coverage matches the live Final's emphasis (Obj 1=2 · Obj 2=2 · Obj 3=2 · Obj 4=1 · Obj 5=4 including the schools tag · Obj 6=3 · Obj 7=6 · Obj 8=5 · schools synthesis=1), same item-type mix (14 multiple-choice + 3 matching + 1 multiple-answer + 7 true/false = 25 items).
• Single-answer integrity: every MC and T/F item has exactly one correct option; the three matching items (P10, P16, P23) pair one-to-one; the one multiple-answer item (P18) keys A, C, E.
• Quantitative gate: PASS. Verified in Python (_build/logs/week-16-numbers.txt, 87/87 checks): PPF OC 40/8 = 5 consumer goods (P1); GDP = 550+220+190+30 = $990B (P3); deflator = 950/760×100 = 125 (P4); CPI = 143/130×100 = 110, inflation = 10% (P5); labor force 141+9=150, u-rate = 6%, LFPR = 75% (P6); growth = 54/900 = 6%, rule of 70 = 70/6 ≈ 11.7 years (P7); AD-AS new eq (SRAS left) Y*=1,050, P*=16 (P8); gap = 1,060−1,000 = $60B = 6% (P9); multiplier = 1/(1−0.75) = 4, ΔY = 45×4 = $180B (P11); deficit = 650−610 = $40B, new debt = $1,540B (P12); required reserves = 5,000×0.20 = $1,000, first loan = $4,000, max expansion = 5,000×5 = $25,000 (P13); r rises from 10−900/150=4% to 10−750/150=5% (P15); ΔY = −30×4 = −$120B (P17); PQ=800×3=2,400, P=2, new P at M−5% = 1.9 (P19); Ridgeway OC of wool = 6/3=2 corn < Baytown's 10/2=5 corn (P21); dollar appreciated 8→10 reals per dollar (P22).
• Graph-logic check: PASS. AD shifts right (wealth-driven spending boost) → P↑, Y↑ (P10); input-cost shock → SRAS left (stagflation) → P↑, Y↓ (P8, P10); technology/capital → LRAS right; rate rise discouraging investment → AD left (P10); Fed's expansionary tools (lower discount rate, buy bonds, lower RR, lower IOR) → MS↑, r↓ (P15, P16); contractionary transmission chain MS↓→r↑→I↓→AD left→P↓,Y↓ (P17); expected-inflation rise shifts SRPC up/right, LRPC stays vertical (P20); dollar appreciation → NX falls (P22); own-price change = movement along AD, not a shift (P25).
• Integrity vs. live exam (L-final-week-16.md): 0 items are shared — verified by full stem comparison:
• Final Q1 uses PPF ratio 30/10 (OC = 3 consumer goods); practice P1 uses 40/8 (OC = 5 consumer goods).
• Final Q3 uses C=700,I=300,G=200,X=140,M=170 → NX=−30, GDP=$1,170B (trade DEFICIT); practice P3 uses C=550,I=220,G=190,X=160,M=130 → NX=+30, GDP=$990B (trade SURPLUS).
• Final Q4 uses nominal 1,100/real 880 → deflator 125; practice P4 uses nominal 950/real 760 → deflator 125 (same deflator result from entirely different raw figures — a deliberate "different path, same concept" check).
• Final Q5 uses a notebook/pen basket ($80→$94, CPI 117.5); practice P5 uses an apple/muffin basket ($130→$143, CPI 110).
• Final Q6 uses 160M adult pop/96M employed/4M unemployed → u-rate 4%, LFPR 62.5%; practice P6 uses 200M/141M/9M → u-rate 6%, LFPR 75%.
• Final Q7 uses GDP 700→763 (9% growth, ≈7.8-year doubling); practice P7 uses GDP 900→954 (6% growth, ≈11.7-year doubling).
• Final Q8 shifts AD right via expansionary monetary policy (Y*=1,900, P*=17.5); practice P8 shifts SRAS left via an input-cost shock (Y*=1,050, P*=16) — different curve, different direction, different scenario.
• Final Q9 diagnoses a RECESSIONARY gap (potential 1,500, actual 1,425); practice P9 diagnoses an INFLATIONARY gap (potential 1,000, actual 1,060).
• Final Q11 uses MPC 0.8, ΔG=+35 (multiplier 5, ΔY=$175B); practice P11 uses MPC 0.75, ΔG=+45 (multiplier 4, ΔY=$180B).
• Final Q12 uses revenue 440/spending 500/prior debt 1,100 (deficit $60B, new debt $1,160B); practice P12 uses revenue 610/spending 650/prior debt 1,500 (deficit $40B, new debt $1,540B).
• Final Q13 uses RR 10%, deposit $2,000 (multiplier 10, max expansion $20,000); practice P13 uses RR 20%, deposit $5,000 (multiplier 5, max expansion $25,000).
• Final Q15 has the Fed BUY bonds (MS 700→800, r 8%→7%); practice P15 has the Fed SELL bonds (MS 900→750, r 4%→5%) — inverse direction.
• Final Q17 traces the EXPANSIONARY transmission chain (ΔI=+22, mult=5, ΔY=+$110B); practice P17 traces the CONTRACTIONARY chain (ΔI=−30, mult=4, ΔY=−$120B) — inverse direction.
• Final Q19 uses M=600,V=5,Q=1,200 with M RISING 10% (P: 2.5→2.75); practice P19 uses M=800,V=3,Q=1,200 with M FALLING 5% (P: 2→1.9) — inverse direction.
• Final Q21 uses Eastland/Westbay (wheat/cloth); practice P21 uses Ridgeway/Baytown (corn/wool) — entirely different scenario and good pair.
• Final Q22 has the dollar DEPRECIATE (110→95 pesos, NX rises); practice P22 has the dollar APPRECIATE (8→10 reals, NX falls) — inverse direction.
• Final Q18 asks which options are MONETARY tools; practice P18 asks which options are FISCAL tools — inverse framing, different option set entirely.
• Final Q16 and practice P16 are both Fed-tool matching tables; three of the four rows use different tools/framings (Q16 mixes expansionary and contractionary tools; P16 is entirely expansionary-framed and swaps "buys bonds" for "reduces the pace of bond sales" specifically to avoid the one pair that would otherwise repeat verbatim) — verified pair-by-pair, 0 shared (left, right) pairs between the two tables.
• Integrity vs. the Week 8 midterm/practice exam and every weekly quiz: 0 items shared — every scenario, number set, and wording on this Practice Final is independently engineered for Week 16 (verified against week-08/L-midterm-week-08.md, week-08/O-practice-exam-week-08.md, and the NUMBERS_PACK anchors for Weeks 1–15; no figure, basket, payoff, or system above reappears from any prior assessment in this course).

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Canvas Placement Block

canvas_object              = Quizzes::Quiz
title                      = "Practice Final — Cumulative (Weeks 1–15)"
assignment_group           = "Practice exercises"
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published                  = true
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provenance                 = "~ Prof. Ashford's edition · Fall 2026 · built with thecoursemaker.com"