Directions: The exam is open book and open note. Please take no more than 3 hours to complete it.

1. What causes the aggregate demand curve to shift to the right (2 points)?

1. What are the causes of a supply shock (2 points)?

1. What does "broaden the base" mean (2 points)?

1. What causes a currency to appreciate (2 points)?

1. What causes a currency to depreciate? (2 points)

1. True or False: In a Gold Standard, currencies float. (2 points)

1. What British economist advocated short-term deficit spending to ameliorate economic problems? (2 points)

1. What is the largest part of Gross Domestic Product? (2 points)

1. What type of Monetary Policy expands the Money Supply? (2 Points)

1. We said that Quantitative __________ reduces the Money Supply. (2 Points)

1. Essay (20 Points)

1. In three paragraphs, plesae explain what is the most important concept that you have learned in Macroeconomics. The first paragraph should introduce the topic. The second paragraph should explain why the topic is so important. The final paragraph should reinforce the key points of your paper. Each paragraph should have one citation from the course textbook.

1. True or False: Tax cuts have proven, historically, to pay for themselves. (2 Points)

1. David Ricardo developed the theory of _________ (2 Points)

1. Fiscal Stimulus has a ______ effect that helps grow the economy (2 Points)

1. If the business world fully adopts Artificial Intelligence, what might happen to Aggregate Supply? (2 Points)

1. Explain the rationale of the Laffer Curve. What was unique about it? (2 Points)