This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 115 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 115 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The cause of Liquidity Trap is A) People prefer to save their money in banks expecting high interest rates. B) People hoard cash because they expect bad events such as deflation, insufficient aggregate demand, or war. C) The government increases spending to reduce Aggregate Demand. D) All answers are wrong. Show Answer Correct Answer: B) People hoard cash because they expect bad events such as deflation, insufficient aggregate demand, or war. 2. Assume Malaysia now has an increasing employment rate, prices are now starting to rise since consumers have an increased consumption power. What is this phenomenon called? A) Increasing Prices. B) Inflation. C) Deflation. D) Recession. Show Answer Correct Answer: B) Inflation. 3. Demographic factors that influence consumption theory are..... A) Population and population consumption. B) Total population and household income. C) Population consumption and household wealth. D) Household income and household wealth. E) Interest rates and forecasts about the future. Show Answer Correct Answer: A) Population and population consumption. 4. What type of diagram is used as a simple depiction of macroeconomics A) Circular flow diagram. B) Historical chart. C) Flow chart. D) None of above. Show Answer Correct Answer: A) Circular flow diagram. 5. Which of the following is most likely to cause the long-run aggregate supply curve to shift to the left? A) Higher nominal wages. B) A decline in productivity. C) An increase in corporate taxes. D) None of above. Show Answer Correct Answer: B) A decline in productivity. 6. Which type of economy is usually paired with a Communist government? A) Mixed. B) Market. C) Command. D) Traditional. Show Answer Correct Answer: C) Command. 7. In terms of resources, what do businesses provide for households? A) Income. B) Sales. C) Taxes. D) Private goods. Show Answer Correct Answer: A) Income. 8. The idea that money to be paid out or received in the future is not equivalent to money paid out or received today A) SMART Money. B) Time Value of Money. C) PV/FV Money. D) Compound Money. Show Answer Correct Answer: B) Time Value of Money. 9. The aggregate demand curve shifts to the right when A) Taxes are cut. B) Government spending is reduced. C) The money supply is reduced. D) All of the above. Show Answer Correct Answer: A) Taxes are cut. 10. If exports INCREASE and imports stay the same, what happens? A) AD will increase. B) AD will decrease. C) AS will increase. D) AS will decrease. Show Answer Correct Answer: A) AD will increase. 11. Which type of unemployment is caused by employee skills that are obsolete and no longer needed? A) Structural. B) Seasonal. C) Frictional. D) Cyclical. Show Answer Correct Answer: A) Structural. 12. ..... is GDP that has been adjusted for price changes. A) Consumer GDP. B) Historical GDP. C) Real GDP. D) No Cap GDP. Show Answer Correct Answer: C) Real GDP. 13. When the government implement programs such as progressive income tax rates which of the following is likely to occur A) Equality is increase in efficiency is increased. B) Equality is increase in efficiency is decreased. C) Equality is decreased and efficiency is increased. D) Equality is decreased efficiency is decreased. E) Equality is increased and efficiency is unaffected. Show Answer Correct Answer: B) Equality is increase in efficiency is decreased. 14. What is a disadvantage of fiscal policy? A) It only acts on the supply side. B) Higher time lags than monetary policy. C) Effective in recession. D) Conflict with government objectives. Show Answer Correct Answer: D) Conflict with government objectives. 15. Of the following, which is the best example of structural unemployment? A) A computer programmer who quits her job to move to a warmer climate. B) A construction worker who loses his job in the winter. C) An auto worker who loses her job during a recession. D) A steel worker who is replaced by a robot. Show Answer Correct Answer: D) A steel worker who is replaced by a robot. 16. Who is regarded as Father of Modern Macro Economics? A) Adam Smith. B) J M Keynes. C) Ragnar Frisch. D) Karl Marx. Show Answer Correct Answer: B) J M Keynes. 17. Aggregate demand and Aggregate supply model uses to show the determination of ..... in an economy. A) Real GDP and income level. B) Real GDP and standard of living. C) Real GDP and price level. D) Real GDP and cost level. Show Answer Correct Answer: C) Real GDP and price level. 18. Taxes that come out of your paycheck include which ones? A) Social Security and Medicare taxes. B) Social Security and Excise taxes. C) Estate taxes and tariffs. D) Sales and progressive taxes. Show Answer Correct Answer: A) Social Security and Medicare taxes. 19. Choose the Best Answer.Which inflation excludes price changes in volatile products, headline or core inflation? A) Headline. B) Core. Show Answer Correct Answer: B) Core. 20. If the MPC is.80, the government spending multiplier is: A) 4. B) 5. C) 3. D) 2. Show Answer Correct Answer: B) 5. ← 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