This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 146 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 146 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. GNP(MP) = GDP(MP) + ..... : A) Depreciation. B) Indirect taxes. C) NFIA. D) Subsidy. Show Answer Correct Answer: C) NFIA. 2. True or False:Defense spending is higher now than ever. A) True. B) False . Show Answer Correct Answer: B) False . 3. Recessionary Gap A) Output is low and unemployment is more than NRU. Actual GDP is below potential GDP. B) Laws that reduce inflation, decrease GDP (Close an Inflationary Gap)-G or + taxes (-C). C) Output is high and unemployment is less than NRU. Actual GDP is above potential GDP. D) A gap with higher prices and a decrease in GDP. E) Laws that reduce unemployment and increase GDP (Close a Recessionary Gap) + G or-taxes (+C). Show Answer Correct Answer: A) Output is low and unemployment is more than NRU. Actual GDP is below potential GDP. 4. There is a ..... relationship between MPS and investment multiplier. A) Positive. B) Inverse. C) Direct. D) None of above. Show Answer Correct Answer: B) Inverse. 5. Which of the following will most likely lead to a decrease in the federal government budget deficit? I. An increase in taxes; II. A decrease in federal government spending; III. A decrease in interest rates A) I only. B) II only. C) III only. D) I and III only. E) I, II, and III. Show Answer Correct Answer: E) I, II, and III. 6. In order for money to have value, it must have all of the following characteristics EXCEPT A) Portability. B) Durability. C) Divisibility. D) Plentiful availability. Show Answer Correct Answer: D) Plentiful availability. 7. The Bank of Indonesia sells bonds/SBI to decrease the money supply. What type of policy is this? A) Contractionary Fiscal Policy. B) Expansionary Fiscal Policy. C) Contractionary Monetary Policy. D) Expansionary Monetary Policy. Show Answer Correct Answer: C) Contractionary Monetary Policy. 8. When people can't find a job because the economy is not doing well due to a recession, this is called? A) Frictional Unemployment. B) Structural Unemployment. C) Cyclical Unemployment. D) None of above. Show Answer Correct Answer: C) Cyclical Unemployment. 9. Which of the following are an example a country reaching its macroeconomic goals? A) The value of the Japanese Yen has declined, causing prices to rise in Japan. B) Canada's unemployment rate reached 15% last year. C) Inflation in Russia has changed dramatically since last year. D) Germany's GDP has increased annually by at least 3% for the past 3 years. Show Answer Correct Answer: D) Germany's GDP has increased annually by at least 3% for the past 3 years. 10. What is the scoring breakdown for the AP Micro exam? A) MC = 1/3; FRQ = 2/3. B) MC = 1/2; FRQ = 1/2. C) MC = 2/3; FRQ = 1/3. D) MC = 1/4; FRQ = 3/4. Show Answer Correct Answer: C) MC = 2/3; FRQ = 1/3. 11. Phillips curve with adaptive expectations A) $\pi=\pi_{-1}-\beta\left(u-u^n\right)+v$. B) $\pi=\pi_{+1}-\beta\left(u-u^n\right)+v$. C) $\pi=\pi_{-1}+\beta\left(u-u^n\right)+v$. D) $\pi=\pi_{-1}-\beta\left(u+u^n\right)+v$. Show Answer Correct Answer: A) $\pi=\pi_{-1}-\beta\left(u-u^n\right)+v$. 12. Use the news headline to answer the question.Navy orders two Ford class aircraft carriers for $ 26 Billion. How will this development affect the gross domestic product? A) It will rise due to increased consumer spending. B) It will fall due to increased consumer spending. C) It will rise due to increased government spending. D) It will fall due to increased government spending. Show Answer Correct Answer: D) It will fall due to increased government spending. 13. What is the liquidity trap? A) It is when monetary policy does not affect the product because interest rates are very high. B) It is when fiscal policy does not affect the product because interest rates are very high. C) It is when fiscal policy does not affect the product because interest rates are very low. D) It is when monetary policy does not affect the product because interest rates are very low. Show Answer Correct Answer: D) It is when monetary policy does not affect the product because interest rates are very low. 14. The GDP of the United States is the ..... in the entire world at ~$ 19.4 trillion. A) Highest. B) Lowest. C) Dumbest. D) Best smelling. Show Answer Correct Answer: A) Highest. 15. Leverage ratio= A) Assets/capital. B) Liabilites/capital. C) Capital/assets. D) Assets/liabilities. Show Answer Correct Answer: A) Assets/capital. 16. If the government implements an expansionary fiscal policy, what action can the central bank take to maintain a stable interest rate? A) Increase the required reserve ratio. B) Increase personal income tax rates. C) Decrease personal income tax rates. D) Sell government bonds. E) Buy government bonds. Show Answer Correct Answer: E) Buy government bonds. 17. When quantity supplied is not equal to quantity demanded means we have: A) Equilibrium. B) Disequilibrium. C) Shortage. D) Surplus. Show Answer Correct Answer: B) Disequilibrium. 18. Australia largely exports ..... and imports ..... A) Manufactured goods; primary commodities. B) Services; manufactured goods. C) Manufactured goods; services. D) Primary commodities and mineral products; manufactured goods. Show Answer Correct Answer: D) Primary commodities and mineral products; manufactured goods. 19. The M1 measure of the money supply primarily consists of which of the following A) Checking accounts and credit cards. B) Noncheckable savings and credit cards. C) Currency in circulation and checkable bank deposits. D) Noncheckable savings and small-denomination time deposits. E) Savings bonds and savings accounts. Show Answer Correct Answer: C) Currency in circulation and checkable bank deposits. 20. Open market operations are A) The processes by which money enters into circulation. B) Reserves greater than the required amounts. C) The buying and selling of government securities to alter the supply of money. D) Rates of interest banks charge on short-term loans to their best customers. Show Answer Correct Answer: C) The buying and selling of government securities to alter the supply of money. ← 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