This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 131 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 131 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If aggregate demand and real GDP are beginning to fall and the unemployment rate is beginning to rise, what conclusion can you draw? A) The economy is in recovery. B) The economy is in an expansion phase. C) Aggregate supply is increasing. D) The economy is facing a slowdown. Show Answer Correct Answer: D) The economy is facing a slowdown. 2. Profits generated by a Vietnamese company in Moscow will be counted in: A) Both GDP and GNP of Vietnam. B) Vietnam's GDP and Russia's GNP. C) Both GDP and GNP of Russia. D) Vietnam's GNP and Russia's GDP. Show Answer Correct Answer: D) Vietnam's GNP and Russia's GDP. 3. An?????? is a tax levied upon goods and services. It is placed upon the transaction, e.g. Value added tax (VAT) and excise duty A) Flat rate / proportional tax. B) Progressive tax. C) Regressive tax. D) Indirect tax. Show Answer Correct Answer: D) Indirect tax. 4. Taxing & spending to help the economy grow is referred to as A) Expansionary policy. B) Monetary policy. C) Contractionary policy. D) Budget deficit. Show Answer Correct Answer: A) Expansionary policy. 5. Net EXPORT (X-M) is one of the factors affecting ..... A) AD CURVE. B) AS CURVE. Show Answer Correct Answer: A) AD CURVE. 6. It is the state in which market supply and demand balance each other, A) Surplus. B) Scarcity. C) Equilibrium. D) Market. Show Answer Correct Answer: C) Equilibrium. 7. The amount of goods and services a unit of money can buy. A) Interest rates. B) Stable Prices. C) Steady economic growth. D) Purchasing Power. Show Answer Correct Answer: D) Purchasing Power. 8. Which of the following could explain the shifts shown in the graph below? A) A decrease in government spending. B) A decrease in investor confidence. C) A rise in the ECB's target inflation rate. D) An adverse supply shock. E) A rise in people's expectations of inflation. Show Answer Correct Answer: D) An adverse supply shock. 9. If the government's total revenues are more than its total expenditure, it is called a ..... A) Balanced budget. B) Surplus budget. C) Deficit budget. D) Trade surplus. Show Answer Correct Answer: B) Surplus budget. 10. How do countries use Real GDP to calculate growth? A) By adding the sum all GDP percentages and equaling 100. B) By calculating the percentage change from one period of time to another. C) By subtracting one years GDP from the next. D) They use nominal not real GDP to calculate growth. Show Answer Correct Answer: B) By calculating the percentage change from one period of time to another. 11. The P in the equation of exchange represents that A) Profit earned in the economy. B) Average level of prices of final goods and services in the economy or the price deflator. C) Marginal level of prices. D) Marginal propensity to spend. Show Answer Correct Answer: B) Average level of prices of final goods and services in the economy or the price deflator. 12. Which of the following terms is also known as total output? A) Price index. B) Price level. C) Aggregate demand. D) Aggregate supply. Show Answer Correct Answer: D) Aggregate supply. 13. Exchanging goods and services for other goods and services A) Money. B) Trade. C) Barter. D) Stealing. Show Answer Correct Answer: C) Barter. 14. Which of the following is not true about final goods? A) Final gods satisfy the wants of ultimate consumers and producers. B) Final goods have direct demand as they satisfy the wants directly. C) Final goods are subject to further transformation in the process of production. D) Final goods are neither used up as raw material nor for resale in the same year. Show Answer Correct Answer: C) Final goods are subject to further transformation in the process of production. 15. The short-run effect of an increase in aggregate demand is an increase in output and an increase in the price level A) True. B) False. Show Answer Correct Answer: A) True. 16. True or False:Federal spending has grown substantially in recent decades. A) False. B) True . Show Answer Correct Answer: B) True . 17. ..... occurs in the economy when unemployment and inflation are both high. A) Hyperinflation. B) Disinflation. C) Deflation. D) Stagflation. Show Answer Correct Answer: D) Stagflation. 18. The idea of government intervention to help in a financial crisis was proposed by which economist? A) Keynes. B) Maslow. C) Friedman. D) Adam Smith. Show Answer Correct Answer: A) Keynes. 19. The market price of a product or service is determined by the forces of supply and demand. A) True. B) False. Show Answer Correct Answer: A) True. 20. Santa's helpers in July would represent A) Frictional unemployment. B) Seasonal unemployment. C) Cyclical unemployment. D) Structural unemployment. Show Answer Correct Answer: B) Seasonal unemployment. ← 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