This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 105 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 105 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The United States usually has an inflation rate around A) 2%. B) 25%. C) 100%. D) 450%. Show Answer Correct Answer: A) 2%. 2. The following data is extracted from the National Accounts of a country (in millions of $ ):Consumer expenditure $ 10, Depreciation $ 2, Government spending $ 3.5, Investment $ 3, Exports $ 3, Imports $ 3.5. What is the GDP of this country? A) $ 14 million. B) $ 16 million. C) $ 18 million. D) $ 25 million. Show Answer Correct Answer: B) $ 16 million. 3. What is the Federal Reserves "Dual Mandate" A) Low employment and high prices. B) Low taxes and maximum employment. C) Stable prices and maximum employment. D) Low interest rates and many savers. Show Answer Correct Answer: C) Stable prices and maximum employment. 4. A bank lends money at a fixed rate of 3%. A) Harmed by unanticipated inflation. B) Benefits from unanticipated inflation. Show Answer Correct Answer: A) Harmed by unanticipated inflation. 5. An unemployment rate of 4.8% suggests Australia is in a: A) Trough. B) Upswing. C) Boom. D) Downswing. Show Answer Correct Answer: C) Boom. 6. A mean market when prices move down for several months or years in a row is known as a A) Bull market. B) Bear market. Show Answer Correct Answer: B) Bear market. 7. If the Fed increases the money supply, it is implementing a(n) ..... policy A) Expansionary monetary. B) Contractionary monetary. C) Expansionary fiscal. D) Contractionary fiscal. Show Answer Correct Answer: A) Expansionary monetary. 8. In which part of the GDP calculation does this fit?Australia exported $ 6 billion worth of goods in 2018, but imported $ 10 billion in goods. A) Consumer spending. B) Government spending. C) Investment spending. D) Net exports. Show Answer Correct Answer: D) Net exports. 9. Is a way to illustrate how a regular group of goods and services changes over time. A) Consumer Price Index. B) Final Goods. C) Market Basket. D) Durable Goods. Show Answer Correct Answer: A) Consumer Price Index. 10. What are the determinants of aggregate supply? A) Changes in demand, interest rates, consumer spending, and inflation. B) Changes in government spending, taxes, and fiscal policy. C) Changes in exchange rates, imports, and exports. D) Changes in input prices, productivity, technology, government regulations, and expectations. Show Answer Correct Answer: D) Changes in input prices, productivity, technology, government regulations, and expectations. 11. In the quantity theory of money, V represents A) The velocity of a dollar. B) The value of a dollar. C) The velocity of production. D) The value of a good. Show Answer Correct Answer: A) The velocity of a dollar. 12. If the government spending is more than its revenue, it is called as ..... A) Budget. B) Surplus budget. C) Deficit budget. D) Loss. Show Answer Correct Answer: C) Deficit budget. 13. Resources can be considered free becuase ..... A) Resources are free because the available quantity exceeds the desired use. B) Resources are free because the available quantity is infinite. Show Answer Correct Answer: A) Resources are free because the available quantity exceeds the desired use. 14. If the general price level doubles and at the same time a worker's real wage rate increases, what must be true of the worker's nominal wage rate? A) It doubled. B) It increased by less than double. C) It increased by more than double. D) It decreased. E) It did not change. Show Answer Correct Answer: C) It increased by more than double. 15. What is the total monetary or market value of all finished goods and services produced within a country's borders called? A) Gross Domestic Product (GDP). B) Consumer Price Index (CPI). C) Equilibrium price. D) Trade-off. Show Answer Correct Answer: A) Gross Domestic Product (GDP). 16. One of the purposes of GDP statistics is: A) Calculating how much profit firms can make. B) Enabling firms to decide what price to charge. C) Ensuring people make the right investment decisions. D) Helping the government to make decisions. Show Answer Correct Answer: D) Helping the government to make decisions. 17. What is not an example of a form of quantity control? A) Minimum wage. B) Taxi medallions. C) Fishing licenses. D) Restricting how much foreign currency people can buy. Show Answer Correct Answer: A) Minimum wage. 18. What goods are excluded from GDP? A) Final Goods. B) Intermediate Goods. C) Manufactured Goods. D) Intangible Goods. Show Answer Correct Answer: B) Intermediate Goods. 19. Which of the following is not one of the five shifters of the supply curve? A) Input price. B) Production. C) Expectation. D) Number of producers. Show Answer Correct Answer: B) Production. 20. GDP, CPI, and the unemployment rate are all A) Signs that the economy is peaking. B) Signs that the economy is in contraction. C) Economic indicators used to determine the state and direction of the economy. D) The result of economic expansion. Show Answer Correct Answer: C) Economic indicators used to determine the state and direction of the economy. ← PreviousNext →Related QuizzesEconomics QuizzesMacroeconomics Quiz 1Macroeconomics Quiz 2Macroeconomics Quiz 3Macroeconomics Quiz 4Macroeconomics Quiz 5Macroeconomics Quiz 6Macroeconomics Quiz 7Macroeconomics Quiz 8Macroeconomics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books