This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 129 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 129 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In a circular flow of income in a closed economy with government intervention, leakage consists of ..... A) Investment and savings. B) Savings only. C) Savings and taxes. D) Savings, taxes and imports. Show Answer Correct Answer: C) Savings and taxes. 2. A car running between Delhi and Agra at a speed of 120 km/h includes: A) Only stock variables. B) Only flow variables. C) Both a stock and a flow variable. D) None of these. Show Answer Correct Answer: C) Both a stock and a flow variable. 3. The monetary policy tool used by the Federal Reserve System that involves buying or selling of government bonds? A) The discount rate. B) The reserve requirement. C) Automatic stabilizers. D) Open-market operations. Show Answer Correct Answer: D) Open-market operations. 4. Banks create money by A) Printing & issuing paper currency. B) Making interest rates on leans higher than those on savings accounts. C) Exchanging gold for paper currency. D) Lending money or making loans. Show Answer Correct Answer: D) Lending money or making loans. 5. Which of the following could cause a movement along a country's short-run Phillips curve toward higher unemployment and lower inflation? A) A significant reduction in energy prices. B) A recession in the economies of the nation's major trading partners. C) A decrease in savings by the country's consumers. D) A movement of the economy from the recovery phase to the expansionary phase of the business cycle. E) An improvement in technology. Show Answer Correct Answer: B) A recession in the economies of the nation's major trading partners. 6. A decrease in aggregate demand, coupled with an increase in aggregate supply, would tend to A) Increase both real GDP and the price level. B) Decrease both real GDP and the price level. C) Decrease the level of real GDP, but the impact on the price level is indeterminate. D) Decrease the price level, but the impact on real GDP is indeterminate. Show Answer Correct Answer: D) Decrease the price level, but the impact on real GDP is indeterminate. 7. If a company lays off half of its employees during a recession, what can you reasonably conclude? A) The employees were bad at their job. B) Another company wanted to higher the employees. C) The company couldn't afford to pay the employees. D) The employees were overqualified for their jobs. Show Answer Correct Answer: C) The company couldn't afford to pay the employees. 8. Which of the following people would be considered unemployed? A) A person who quits work to care for aging parents. B) A person who stayed home to raise his children and now starts looking for a job. C) A person who is qualified to teach but is driving a bus until a teaching job is available. D) A person who works two part-time jobs but is looking for a full-time job. Show Answer Correct Answer: B) A person who stayed home to raise his children and now starts looking for a job. 9. Tax Multiplier = A) MPC/MPS. B) -1/MPS. C) MPC/1. D) -MPC/MPS. Show Answer Correct Answer: D) -MPC/MPS. 10. What school of economic thought replaced Adam Smith's theory as the predominant body of economic thought in the Western world during the 1930s through the 1960s? A) Keynesian economics. B) Classical Economics. C) Supply Side Economics. D) Monetarism. E) Reaganomics. Show Answer Correct Answer: A) Keynesian economics. 11. It is the insufficiency of the goods within the period. A) Production. B) Scarcity. C) Supply. D) Demand. Show Answer Correct Answer: B) Scarcity. 12. What characterizes a command economy (select all that apply) A) Government makes the decisions. B) Markets relied-upon to perform allocations. C) Reallocation of resources according to need. D) All. Show Answer Correct Answer: A) Government makes the decisions. 13. If the federal government has a balanced budget and enacts contractionary fiscal policy, then A) The demand for loans shifts to the left. B) The demand for loans shifts to the right. C) The supply of loanable funds shifts to the right. D) The supply of loanable funds shifts to the left. Show Answer Correct Answer: C) The supply of loanable funds shifts to the right. 14. The resulting unemployment that hit the coal mining communities of Britain would best be characterized as: A) Seasonal unemployment. B) Structural unemployment. C) Frictional unemployment. D) Cyclical unemployment. Show Answer Correct Answer: B) Structural unemployment. 15. When the household saves, it makes the economy ..... because savings is a LEAKAGE of money from the circular flow. A) Unreasonable. B) Unbalanced. C) Unstable. D) None of above. Show Answer Correct Answer: B) Unbalanced. 16. Tracking the relationship between the money supply and the inflation rate A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: A) Macroeconomics. 17. When a country can make something more efficiently than another country they have a(n) A) Absolute advantage. B) Comparative advantage. C) Monopoly. D) Exchange rate. Show Answer Correct Answer: B) Comparative advantage. 18. What section of the Keynesian aggregate supply curve is explained by maximum output? A) Section I. B) Section II. C) Section III. D) Section IV. Show Answer Correct Answer: C) Section III. 19. " In a country as wealthy as the United States, it is unconscionable that some people do not have health insurance. Therefore, the government SHOULD provide health insurance for all Americans." This statement is best characterized as: A) A self-interested statement. B) A false statement. C) Normative statement. D) Positive statement. Show Answer Correct Answer: C) Normative statement. 20. This is a measure of the number of people who are able to work and actively looking for work, but don't have a job. A) Aggregate. B) Gross Domestic Product (GDP). C) Inflation Rate. D) Unemployment Rate. E) GDP Annual Growth Rate. Show Answer Correct Answer: D) Unemployment Rate. ← 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