This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 162 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 162 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which bank account earns you the most interest? A) Savings. B) Checking. C) Certificate of Deposit. D) None of above. Show Answer Correct Answer: C) Certificate of Deposit. 2. Which of the following scenarios will cause interest rates to increase? A) A budget deficit and expansionary fiscal plicy. B) A balanced budget and expansionary fiscal policy. C) A budget surplus and expansionary fiscal policy. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. A rise in the overall price level A) GDP. B) Market Basket. C) Aggregate Supply. D) Inflation. Show Answer Correct Answer: D) Inflation. 4. The ..... shows the various combinations of output and interest rate when the money market is in equilibrium. A) LM curve. B) IS curve. C) Demand curve. D) Supply curve. Show Answer Correct Answer: A) LM curve. 5. Crowding Out Effect A) Wages and Resource Costs will increase as price levels increase. B) Measures the effect of the economy on inflation and unemployment with an inverse relationship. C) No tradeoff between inflation and unemployment, represented by a vertical line at the NRU. D) Government spending might cause unintended effects that weaken the impact of the policy. E) Wages and Resource Costs will not increase as price levels increase. Show Answer Correct Answer: D) Government spending might cause unintended effects that weaken the impact of the policy. 6. What is it called when a worker takes a lower skilled job when they are overqualified to earn money to pay bills? A) A discouraged worker. B) Underemployed worker. C) A seasonal worker. D) A structural worker. Show Answer Correct Answer: B) Underemployed worker. 7. Assume autonomous consumption is $ 20, investment is $ 30, government expenditure is 40, net exports 10. Suppose the mpc=0.7 and the tax rate=0.2. What is the consumption function for the open economy? A) C = 20 + 0.56Y. B) C = 20 + 0.7Y. C) AE = 100 + 0.56Y. D) None of above. Show Answer Correct Answer: A) C = 20 + 0.56Y. 8. Daffa buys stock $ 1, 000. He has to pay $ 50 for broker fee. How much can be counted in GDP? A) $ 1000 (only the stock). B) $ 1050 (stock + broker fee). C) $ 0 (neither stock nor broker fee). D) $ 50 (only the broker fee). Show Answer Correct Answer: D) $ 50 (only the broker fee). 9. The SRAS curve illustrates: A) The long-term potential output of an economy. B) The quantity of output firms are willing to produce at a given price in the short run. C) The level of output in the shortrun when the economy to cope with changes in AD. D) The effect of expansionary fiscal policy. Show Answer Correct Answer: C) The level of output in the shortrun when the economy to cope with changes in AD. 10. Which pairs of operations BEST fit with fiscal policy? A) Government spending and taxation. B) Taxation and open market operations. C) Discount rate and government spending. D) Open market operations and discount rate. Show Answer Correct Answer: A) Government spending and taxation. 11. How many multiple choice questions are there on the AP Microeconomics exam? A) 45. B) 60. C) 75. D) 90. Show Answer Correct Answer: B) 60. 12. Describe the effects of demand-pull inflation A) PL increases (PL2>PL1) and employment increases (Y2>Yf). B) PL decreases (PL2Yf). C) PL increases (PL2>PL1) and employment decreases (Y2 D) PL decreases and employment decreases (Y2 Show Answer Correct Answer: A) PL increases (PL2>PL1) and employment increases (Y2>Yf). 13. If a car is purchased by a taxi operator, it will be regarded as a A) Capital goods. B) Intermediate goods. C) Final goods. D) Both A and B. Show Answer Correct Answer: D) Both A and B. 14. Monetary value of any spending on final goods and services by a local, state, or national government in a given time period. A) Consumer Spending. B) Investment. C) Government Spending. D) Net Exports. Show Answer Correct Answer: C) Government Spending. 15. The consumer price index (CPI) is a measure of overall costs of the goods/services bought by a typical consumer A) True. B) False. Show Answer Correct Answer: A) True. 16. An example of fiscal policy is ..... A) The purchase or selling of securities and treasury bills in the open market. B) Influencing the rate of interest on deposits. C) Adjusting the bank rate or discount rate. D) A change in value added tax. Show Answer Correct Answer: D) A change in value added tax. 17. The LRAS curve is: A) A representation of short-run output fluctuations. B) Depictive of the economy's output when at full capacity. C) A reflection of temporary economic changes. D) Determined by short-term supply shocks. Show Answer Correct Answer: B) Depictive of the economy's output when at full capacity. 18. Relating to society and economics A) Economic-socio. B) Economical. C) Sociological. D) Socio-economic. Show Answer Correct Answer: D) Socio-economic. 19. Items that firms in the United States produce and sell to the rest of the world A) Imports of goods and services. B) Investment. C) Nominal GDP. D) Exports of goods and services. Show Answer Correct Answer: D) Exports of goods and services. 20. In the GDP equation, what does the 'I' stand for?GDP = C + I + G + (X-M) A) Intelligent spending. B) Investor spending. C) Incredible spending. D) Investment spending. Show Answer Correct Answer: D) Investment spending. ← 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