This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 152 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 152 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Changes in real GDP are used to measure A) Inflation. B) The level of employment. C) Economic growth. D) The distribution of income. Show Answer Correct Answer: C) Economic growth. 2. A mismatch between the geographic location of workers and the location of job openings would result in which type of unemployment? Select one: A) Wait. B) Cyclical. C) Frictional. D) Structural. Show Answer Correct Answer: D) Structural. 3. How many sections does the Keynesian aggregate supply curve have? A) 3. B) 4. C) 2. D) 5. E) 1. Show Answer Correct Answer: A) 3. 4. The IS curve will shift to the right when which of the following occurs? A) An increase in the money supply. B) An increase in government spending. C) A reduction in the interest rate. D) None of the above. Show Answer Correct Answer: B) An increase in government spending. 5. Products that are purchased by their end users A) Final goods. B) Intermediate goods. C) The best products. D) Complete goods. Show Answer Correct Answer: A) Final goods. 6. The furniture in your home is from France, the tea you drink is from Britain, and the clothes you wear are made in Italy. Last year your lumber company sold and shipped many materials to Portugal. Which of the following is true about the economy in which you live? A) It relies on the buying and selling of one product. B) It relies solely on agriculture. C) It relies heavily on trade and commerce. D) It relies on government control. Show Answer Correct Answer: C) It relies heavily on trade and commerce. 7. ISLM model explains AD curve in closed economy, Mundell Fleming model explains AD curve for a small open economy A) True. B) False. Show Answer Correct Answer: A) True. 8. Which condition must be met for economic efficiency to be achieved? A) Marginal social costs are zero in the production of all goods. B) Marginal social costs are at a minimum in the production of all goods. C) Marginal social benefits are at a maximum in the production of all goods. D) Marginal social costs equal marginal social benefits in the production of all goods. Show Answer Correct Answer: D) Marginal social costs equal marginal social benefits in the production of all goods. 9. All other things being equal, which one of the following combinations is most likely to have the effect of shifting the short-run aggregate supply curve for the economy to the left? A) Falling exchange rate and rising taxes on business profits. B) Rising exchange rate and falling taxes on business profits. C) Falling exchange rate and falling taxes on business profits. D) Rising exchange rate and rising taxes on business profits. Show Answer Correct Answer: A) Falling exchange rate and rising taxes on business profits. 10. Which of the following will most likely decrease the unemployment rate? A) Workers become discouraged and drop out of the labor force. B) Workers lose jobs when their skills become obsolete. C) Workers switch from full-time to part-time jobs. D) Workers are not allowed to work from home. E) Workers continue to work after reaching the retirement age. Show Answer Correct Answer: A) Workers become discouraged and drop out of the labor force. 11. Which person below would not be counted in the labor force? A) Carl, whose parents shut down the family farm. B) Cindy, who quit her job to become a full time student. C) Clayton, who has recently entered the labor force. D) Cory whose skills are no longer in demand. Show Answer Correct Answer: B) Cindy, who quit her job to become a full time student. 12. The GDP Equation A) GDP= C + R + N + (X-M). B) GDP= C + I + G + (M-X). C) GDP= C + I + G + (X-M). D) GDP = C + I + N + (X-M). Show Answer Correct Answer: C) GDP= C + I + G + (X-M). 13. Choose the Best Answer.Which has smaller market basket, headline or core inflation? A) Headline. B) Core. Show Answer Correct Answer: B) Core. 14. What do you need to calculate in order to determine the marginal propensity to consume? A) The change in consumption divided by the change in disposable income. B) The change in income divided by the change in consumption. C) The change in consumption divided by the change in real GDP. D) The change in consumption divided by the change in savings. Show Answer Correct Answer: A) The change in consumption divided by the change in disposable income. 15. Macroeconomics approaches the study of economics from the viewpoint of: A) A typical firm. B) A typical household. C) The entire economy. D) Governmental units. Show Answer Correct Answer: C) The entire economy. 16. If the central bank sets the interest rate to be lower than what will commercial banks be able to lend A) Increased. B) Decrease. C) Does not change. D) All wrong. Show Answer Correct Answer: A) Increased. 17. The sticky price model eq A) $P=EP+\frac{\left(1-s\right)a}{s}\left(Y-Y.\right)$. B) $P=P+\frac{\left(1-s\right)a}{s}\left(Y-Y.\right)$. C) $P=EP+\frac{\left(s-1\right)a}{s}\left(Y-Y.\right)$. D) $P=EP+\frac{\left(1-s\right)a}{s}\left(Y-Y\right)$. Show Answer Correct Answer: A) $P=EP+\frac{\left(1-s\right)a}{s}\left(Y-Y.\right)$. 18. Which of the following is a macroeconomic statement? A) The price of rice decline by 1%. B) ALTEL company profit increase by 10%. C) The demand of PEPSI dropped. D) The income of Malaysian increase. Show Answer Correct Answer: B) ALTEL company profit increase by 10%. 19. One of the following explains why the Short Run Aggregate Supply (SAS) curve is upwards sloping A) All factor costs are fixed in the short run. B) Wages are fixed in the short run. C) Wages are variable in the short run. D) All factor costs are variable in the short run. Show Answer Correct Answer: B) Wages are fixed in the short run. 20. Suppose Debbie Dawn leaves her job at the Acme Jet-Pack Company to pursue her acting career. If she is unable to land any acting jobs for a few months because she is not very good, what type of unemployment is she most likely experiencing? A) Frictional unemployment. B) Seasonal unemployment. C) Cyclical unemployment. D) Structural unemployment. Show Answer Correct Answer: D) Structural 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