This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 106 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 106 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The components of AS/AD model are Aggregate Demand (AD) and Aggregate Supply (AS) curves A) True. B) False. Show Answer Correct Answer: B) False. 2. A table that shows a range of prices for a good or service and the quantity supplied at each price A) Substitute good. B) Shift in supply. C) Demand schedule. D) Supply schedule. Show Answer Correct Answer: D) Supply schedule. 3. The money supply would fall if A) Households decide to hold relatively more currency and relatively fewerdeposits and banks decide to hold relatively more excess reserves andmake fewer loans. B) Households decide to hold relatively more currency and relatively fewerdeposits and banks decide to hold relatively fewer excess reserves andmake more loans. C) Households decide to hold relatively less currency and relatively moredeposits and banks decide to hold relatively more excess reserves andmake fewer loans. D) Households decide to hold relatively less currency and relatively moredeposits and banks decide to hold relatively less excess reserves and makemore loans. Show Answer Correct Answer: A) Households decide to hold relatively more currency and relatively fewerdeposits and banks decide to hold relatively more excess reserves andmake fewer loans. 4. The money that businesses spend in; buildings, land, equipment and people is also known as:Investment. A) True. B) False. Show Answer Correct Answer: A) True. 5. IS curve shows equilibrium condition in which of the following market? A) Money market. B) Commodity market. C) Capital market. D) Labour market. Show Answer Correct Answer: B) Commodity market. 6. This is the study of the production and consumption of goods and services. A) Economics. B) Macroeconomics. C) Microeconomics. D) Statistics. Show Answer Correct Answer: A) Economics. 7. Regressive taxes ..... A) Are higher the more you make. B) Are lower the more you make. C) Are the same for everyone. D) None of above. Show Answer Correct Answer: B) Are lower the more you make. 8. Any good Macroeconomist will tell you that when a country's economy is growing, the government should utilize ..... policy and when a country's economy is shrinking the government should utilize ..... policy. A) Expansionary, expansionary. B) Contractionary, contractionary. C) Expansionary, contractionary. D) Contractary, expansionary. Show Answer Correct Answer: D) Contractary, expansionary. 9. Private saving = A) Y-T-C. B) Y-G-C. C) Y-G-C. D) Y-T-C-G. Show Answer Correct Answer: A) Y-T-C. 10. The quantity theory of money states that the central bank, which controls the money supply, has ultimate control over ..... A) Interest rate. B) Velocity of money. C) Output. D) Rate of infation. Show Answer Correct Answer: D) Rate of infation. 11. If investment decreases by 20 billion dollars and the MPC is.5, the aggregate demand curve will shift how? A) Left by 40 billion dollars. B) Right by 20 billion dollars. C) Right by 40 billion dollars. D) Left by 20 billion dollars. Show Answer Correct Answer: A) Left by 40 billion dollars. 12. Depreciation A) Base year. B) Consumption. C) Depreciation. D) National income. Show Answer Correct Answer: C) Depreciation. 13. Say prices are constant, however, there is an increase in the value of financial assets. What would be the change? A) There would be no change in AS/AD. B) AS shifts left. C) AD shifts right. D) AS shifts right. Show Answer Correct Answer: D) AS shifts right. 14. Will the following scenario affect the current account or capital account, and will the transaction be a debit or credit? A Ukrainian businesswoman buys a majority share of ownership in a U.S. clothing company. A) Current account; debit. B) Current account; credit. C) Capital account; debit. D) Capital account; credit. Show Answer Correct Answer: D) Capital account; credit. 15. What does "CAF" stand for? A) Corporacion Andina de Fomento. B) Corporation of America's Finances. C) Caballero Aburrido Fabuloso. D) Calculation of Actual Fortune. Show Answer Correct Answer: A) Corporacion Andina de Fomento. 16. These are set of assets in the economy used to buy goods and services. A) Cash. B) Money. C) Assets. D) Equity. Show Answer Correct Answer: B) Money. 17. What impact would you expect high levels of immigration to have on consumption in the UK? A) Positive. B) Negative. C) Neutral. D) None of above. Show Answer Correct Answer: A) Positive. 18. What is the velocity of money? A) A measurement of the rate at which money is exchanged in an economy. B) Where money keeps changing. C) The number of times that money stayed in one entity. D) It's the rate at which consumers and businesses in an economy keep money for themselves. Show Answer Correct Answer: A) A measurement of the rate at which money is exchanged in an economy. 19. Monetary policy control inflation and deflation by controlling ..... A) Aggregate demand. B) Aggregate supply. C) Money supply. D) Tax. Show Answer Correct Answer: C) Money supply. 20. The increased costs of transactions caused by infaltion. A) Shoe-Leather Cost. B) Menu Cost. C) Unit-of-Account Cost. D) Disinflation. Show Answer Correct Answer: A) Shoe-Leather Cost. ← 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