This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 128 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 128 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. There are levels of unemployment. Someone who was looking for work but gave up trying is ..... A) A high school dropout. B) Discouraged worker. C) Underemployed. D) A quitter. Show Answer Correct Answer: B) Discouraged worker. 2. Which of the following is not in the labor force? A) Charles, who wants to work but has given up looking for work until the weather improves. B) Mary, who works part-time but wishes for work full time. C) John, who has a graduate degree but is working as a waiter. D) Carl, who does not have work but applied for work at a local factory. E) Melissa, who just graduated from business school and is currently seeking employment as an accountant. Show Answer Correct Answer: A) Charles, who wants to work but has given up looking for work until the weather improves. 3. The M2 measurement of the money supply includes ..... A) Certificates of Deposit. B) Cash and Coin in Ciruclation. C) Demand Deposits. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 4. Which of the following is not in conflict with macroeconomics goals? A) Inflation. B) Unemployment. C) Budget deficit in balances of payment. D) National income. Show Answer Correct Answer: D) National income. 5. Who is not counted as unemployed? A) Discouraged workers. B) Part-time workers. C) People who have given up looking for work. D) People who want more hours but are part-time. Show Answer Correct Answer: B) Part-time workers. 6. SRAS curve A) Output is related to unexpected movements in the price level. B) Unemployment is related to unexpected movements in the inflation rate. C) Output is related to expected movements in the price level. D) Unemployment is related to expected movements in the inflation rate. Show Answer Correct Answer: A) Output is related to unexpected movements in the price level. 7. Which of the following is not a problem associated with using GDP per capita as a measure of economic development? A) GDP per capita fails to take into consideration how income, goods and services are shared among the members of an economy. B) GDP per capita fails to take into consideration negative externalities such as pollution associated with economic development. C) GDP per capita fails to take into consideration the value of production used to repay outstanding foreign debt. D) GDP per capita fails to take into account the growing levels of population in developing countries. Show Answer Correct Answer: A) GDP per capita fails to take into consideration how income, goods and services are shared among the members of an economy. 8. Corn Flakes are an inferior good. If minimum wage increases, what will happen in the market for Corn Flakes? A) Rightward shift in supply. B) Leftward shift in supply. C) Rightward shift in demand. D) Leftward shift in demand. Show Answer Correct Answer: D) Leftward shift in demand. 9. What is the Y-axis in the Phillips Curve A) Unemployment Rate. B) Inflation Rate. C) Interest Rate. D) GDP. Show Answer Correct Answer: B) Inflation Rate. 10. What is aggregate demand? A) The demand for goods and services in an economy over a long period of time. B) Total demand for goods and services in an economy at a given time. C) The demand for goods and services in an economy at a specific price level. D) The demand for a specific good or service in an economy at a given time. Show Answer Correct Answer: B) Total demand for goods and services in an economy at a given time. 11. If nominal gross domestic product fell while real gross domestic product rose, which of the following must be true? A) Unemployment increased. B) The inflation rate was negative. C) Net exports were negative. D) The average of stock prices rose while bond prices fell. E) Nominal interest rates rose by less than the rate of inflation. Show Answer Correct Answer: B) The inflation rate was negative. 12. Supply-side policies are aimed mainly at A) Improving the underlying trend rate of economic growth. B) Dealing with short-term supply-side shocks to the economy. C) Combating cyclical unemployment. D) Reducing the government's budget deficit. Show Answer Correct Answer: A) Improving the underlying trend rate of economic growth. 13. The value of the final goods and services produced in a given year expressed in terms of the prices of the same year. A) Real GDP. B) Nominal GDP. C) Net exports of goods and services. D) Gross Domestic Product. Show Answer Correct Answer: B) Nominal GDP. 14. ..... occurs when the central bank sets an explicit target for the inflation rate and sets monetary policy in order to hit that target. A) Inflation Targeting. B) Expansionary Target. C) Contractionary Target. D) Required Target. Show Answer Correct Answer: A) Inflation Targeting. 15. Which is an example of expansionary fiscal policy? A) Cutting taxes. B) Decreasing government spending. C) Reducing production of consumer and capital goods. D) Decreasing the prices of consumer goods. Show Answer Correct Answer: A) Cutting taxes. 16. Which part below is responsible for printing bank notes (paper money) for use in the economic system A) Ministry of Finance. B) Central bank. C) Foreign Commercial Bank of Laos Mass. D) Ministry of Industry and Trade. Show Answer Correct Answer: B) Central bank. 17. Phillips curve A) Output is related to unexpected movements in the price level. B) Unemployment is related to unexpected movements in the inflation rate. C) Output is related to expected movements in the price level. D) Unemployment is related to expected movements in the inflation rate. Show Answer Correct Answer: B) Unemployment is related to unexpected movements in the inflation rate. 18. A merchant has appointed telemarketers to target senior citizens into buying products and services through false claims. What kind of unfair trade practice is this? A) Misrepresenting a Product. B) Faking Endorsements and Guarantees. C) Giving Misleading Price Information. D) Taking Advantage of Customers. Show Answer Correct Answer: D) Taking Advantage of Customers. 19. Which of the following causes a shift in the short run Phillips curve? A) Any changes to aggregate supply. B) Any changes to aggregate demand. C) Any changes in frictional or structural unemployment. D) All of the above. Show Answer Correct Answer: A) Any changes to aggregate supply. 20. Classification of goods depend on the: A) Consumption of goods. B) Production of goods. C) First-use of goods. D) End-use of goods. Show Answer Correct Answer: D) End-use of goods. ← 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