This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 127 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 127 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is one way the government can influence the economy during a recession? A) Increase spending or cut taxes. B) Decrease spending or increase taxes. C) Implement price controls on goods and services. D) Restrict international trade. Show Answer Correct Answer: A) Increase spending or cut taxes. 2. The total market value of all final goods and services produced within a given period by factors of production owned by a country's citizens, regardless of where the output is produced. A) Gross domestic products. B) Net national products. C) Gross national products. D) Net domestic products. Show Answer Correct Answer: C) Gross national products. 3. An increase in business confidence will cause what change? A) Increase in AD. B) Decrease in AD. C) Increased AS. D) Decrease in AS. Show Answer Correct Answer: A) Increase in AD. 4. If the quantity of money demanded exceeds the quantity supplied: A) The supply-of-money curve will shift to the left. Option 1*. B) The demand-for-money curve will shift to the right. C) The interest rate will rise. D) The interest rate will fall. Show Answer Correct Answer: C) The interest rate will rise. 5. The annual plan for spending by Congress and the President is A) Federal Budget. B) Fiscal Policy. C) Money supply. D) Recession. Show Answer Correct Answer: A) Federal Budget. 6. A period of decline in total output, income, employment, and trade, lasting six months or longer, is defined as a: A) Trough. B) Business cycle. C) Secular trend. D) Recession. Show Answer Correct Answer: D) Recession. 7. Purchases and sales of government securities by the Federal Reserve are called A) Discount loans. B) Federal fund transfers. C) Swap transactions. D) Open market operations. Show Answer Correct Answer: D) Open market operations. 8. Mr. Miedema and his wife venture to Frosty Cove to buy themselves some ice cream. Which component of GDP does this exemplify? A) Consumption. B) Investment. C) Government Spending. D) Net Exports. Show Answer Correct Answer: A) Consumption. 9. What should the "normal" or "acceptable" unemployment rate be? A) 1-10%. B) 2-3%. C) 4-6%. D) 10-12%. Show Answer Correct Answer: C) 4-6%. 10. The availability of money; how quickly you can convert it into cash in your hand is its ..... A) Diversity. B) Liquidity. C) Yield. D) Gratuity. Show Answer Correct Answer: B) Liquidity. 11. A contractionary fiscal policy would NOT involve which of the following? A) An attempt to reduce the deficit. B) Cuts in government spending. C) A tax decrease. D) A tax increase. Show Answer Correct Answer: C) A tax decrease. 12. What type of unemployment happens because of the Business Cycle? A) Unjust. B) Frictional. C) Structural. D) Cyclical. Show Answer Correct Answer: D) Cyclical. 13. ..... is when workers refuse to work in order to force an employer to meet their demands. A) Labor unions. B) Party. C) Strike. D) Sweatshop. Show Answer Correct Answer: C) Strike. 14. Total factor productivity is A) The rate of technological progress. B) The increase in the accumulation of human capital. C) The rate at which real GDP per capita is increasing. D) The rate of economic growth. E) The amount of output that can be produced with a given amount of factor inputs. Show Answer Correct Answer: E) The amount of output that can be produced with a given amount of factor inputs. 15. Which best describes the federal income tax? A) Progressive tax. B) Proportional tax. C) Regressive tax. D) None of above. Show Answer Correct Answer: B) Proportional tax. 16. GDP deflator = A) $\frac{no\min al\ GDP}{real\ GDP}$. B) $\frac{real\ GDP}{no\min al\ GDP}$. Show Answer Correct Answer: A) $\frac{no\min al\ GDP}{real\ GDP}$. 17. There are two types of Price Controls:Price Ceilings and Price Floors. What is the difference? A) A Price Ceiling is the maximum price sellers are allowed to charge for a good or service; a Price Floor is the minimum price buyers are required to pay for a good or service. B) A Price Floor is the maximum price sellers are allowed to charge for a good or service; a Price Ceiling is the minimum price buyers are required to pay for a good or service. Show Answer Correct Answer: A) A Price Ceiling is the maximum price sellers are allowed to charge for a good or service; a Price Floor is the minimum price buyers are required to pay for a good or service. 18. What will result from rising unemployment in an economy? A) The government's budget deficit will fall. B) Any existing inflationary pressure will be reduced. C) Output will increase. D) The economy's potential output (with full employment) will increase. Show Answer Correct Answer: B) Any existing inflationary pressure will be reduced. 19. Whics of the studies below are included in macroeconomics studies? A) Export & Import, Balance Sheet, National Income, Aggregate Income. B) Aggregate Expenditure, Inflation, Deflation. C) Monetary Policy, Fiscal Policy, Unemployment Rate. D) All the answers are correct. Show Answer Correct Answer: D) All the answers are correct. 20. Which of the following is an abbreviation for the quantity of money in a broad sense? A) M1. B) What. C) With. D) Mch. Show Answer Correct Answer: B) What. ← 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