This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 161 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 161 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Fiscal policy:an increase in govt purchases A) Shifts IS curve to right. B) Shifts IS curve to left. C) Shifts LM curve to right. D) Shifts LM curve to left. Show Answer Correct Answer: A) Shifts IS curve to right. 2. A hyper market has opened a self-service counter and caused the cashier to be dismissed. The unemployment of the cashier is categories as A) Structural unemployment. B) Frictional unemployment. C) Cyclical unemployment. D) Under unemployment. Show Answer Correct Answer: A) Structural unemployment. 3. According to the simple quantity theory of money and prices, a change in the money supply of 6.5 percent would, holding velocity constant, lead to a 6.5 percent change in A) Real GDP. B) The price level. C) Velocity. D) Aggregate supply. Show Answer Correct Answer: B) The price level. 4. Fiat money is ..... A) A type of money set by government decree. B) Any asset used as the medium of exchange. C) A type of money with intrinsic value. D) Any asset used as the unit of account. Show Answer Correct Answer: A) A type of money set by government decree. 5. Macroeconomics is a study of..... A) The behavior of individual firms. B) The entire economy. C) General price level [General price level]. D) Government units [Unit-unit kerajaan]. Show Answer Correct Answer: B) The entire economy. 6. Which restriction to trade causes prices to rise because consumers have fewer options? A) Exchange rate. B) Tariff. C) Inflation. D) Embargo. Show Answer Correct Answer: D) Embargo. 7. A country experiences a long strike by railway workers.What would be the macroeconomic impact of such a strike? A) National output would fall. B) Railway workers would lose income. C) The demand for taxi services would rise. D) The profits of railway operators would fall. Show Answer Correct Answer: A) National output would fall. 8. If the federal government has a budget surplus and enacts expansionary 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: D) The supply of loanable funds shifts to the left. 9. Which is the equation for unemployment rate A) E/LF. B) U/LF. C) (E+U)/LF. D) LF/U. Show Answer Correct Answer: B) U/LF. 10. Which of the following does not represent a leakage or a withdrawal in the circular flow of income? A) Taxes. B) Imports. C) Savings. D) Government expenditures. Show Answer Correct Answer: D) Government expenditures. 11. Under-developed nations is the definition for which term A) Platt Amendment. B) Third World. C) Superpower. D) Despotic rule. Show Answer Correct Answer: B) Third World. 12. The opposite of inflation is..... A) Depreciation. B) Deflation. C) Deflator. D) Degradation. Show Answer Correct Answer: B) Deflation. 13. Which one of the following impacts is LEAST likely to occur as a result of expansionary fiscal policy? A) An increase in unemployment. B) An increase in inflation. C) An increase in the government debt. D) An increase in aggregate expenditure. E) An increase in equilibrium output. Show Answer Correct Answer: A) An increase in unemployment. 14. In 2016, output in Indonesia rose by %5. Which of the government objectives does this meet. A) Balance of payment stability. B) Economic growth. C) Full employment. D) Price stability. Show Answer Correct Answer: B) Economic growth. 15. A country is said to be experiencing inflation when ..... A) Prices of most goods and services are rising over time. B) Total output is falling over time. C) Total output is rising over time. D) Prices of most goods and services are falling over time. Show Answer Correct Answer: A) Prices of most goods and services are rising over time. 16. In the circular flow diagram, which of the following is true in resource or factor markets? A) Households sell resources to business firms. B) Households sell products to business firms. C) Business firms sell goods and services to households. D) Business firms sell resources to households. Show Answer Correct Answer: A) Households sell resources to business firms. 17. TRUE or FALSE:An increase in inflation will shift the AD curve to the right. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 18. Which of the following would not be counted in the Australian BOP current account? A) Helen, an Australian oil engineer, is a paid adviser to Middle Eastern countries in the area of petroleum extraction. B) BHP owns buildings that are situated in Mexico. C) France purchases a new ferry from a company in Tasmania. D) John receives a $ 50 dividend cheque on stock he owns in a business in Germany. Show Answer Correct Answer: B) BHP owns buildings that are situated in Mexico. 19. The following are three (3) macroeconomic variables that are often used by economists to analyze the economic performance of a region, except..... A) Real GDP. B) Nominal GDP. C) Inflation Rate. D) Unemployment Rate. Show Answer Correct Answer: B) Nominal GDP. 20. Index numbers assigned to each year that show how prices have changed relative to a specific base year (base year given 100) A) Price Indices. B) Causes of Inflation. C) Inflation. D) Full Employment Output. Show Answer Correct Answer: A) Price Indices. ← 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