This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 176 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 176 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The consequences of inflation include: A) The decline in the level of prosperity of large groups of society. B) All true. C) The prospects for economic development in the long term will worsen. D) Reducing productive investment, this tendency will slow down economic growth. E) All wrong. Show Answer Correct Answer: B) All true. 2. When the demand curve has shifted to the right, this suggests demand has A) Increased. B) Decreased. C) Quantity demanded has increased. D) Quantity demanded has increased. Show Answer Correct Answer: A) Increased. 3. Which of these does NOT describe the Japanese economy of recent decades? A) The Japanese economy has struggled with generally falling prices. B) Japan experienced a banking crisis in 1989 that triggered a recession. C) Japanese consumers have held back on spending, exacerbating economic problems. D) The Japanese banking crisis of the late 1980s triggered serious inflation. E) All of these statements are accurate. Show Answer Correct Answer: D) The Japanese banking crisis of the late 1980s triggered serious inflation. 4. ..... is the practice of limiting trade to protect domestic industries. A) Protectionism. B) Tariffs. C) Import Quota. D) Foreign Exchange Controls. Show Answer Correct Answer: A) Protectionism. 5. ....., often referred to simply as ....., is output per worker. A) Labor Productivity; Productivity. B) Physical Capital; Capital. C) Human Capital; Capital. D) Technology Productivity; Productivity. Show Answer Correct Answer: A) Labor Productivity; Productivity. 6. The formula to calculate the real interest rate is A) Real interest rate = Nominal interest rate + Inflation rate. B) Real interest rate = Nominal interest rate-Inflation rate. C) Real interest rate = Nominal interest rate x Inflation rate. D) Real interest rate = (Nominal interest rate / Inflation rate) x 100%. Show Answer Correct Answer: B) Real interest rate = Nominal interest rate-Inflation rate. 7. The type of cost inflation that causes people to go to the bank more often because they choose to carry less money in their wallets is called..... A) Inconvenience Cost. B) Tax Cost. C) Travel Cost. D) Shoeleather Cost. Show Answer Correct Answer: D) Shoeleather Cost. 8. When the government attempts to improve equality in an economy the result is often A) An increase in overall out put in the economy. B) Additional government Avenue since overall income will increase. C) A reduction in equality. D) A reduction in efficiency. E) An increase in efficiency. Show Answer Correct Answer: D) A reduction in efficiency. 9. The Phillips curve shows the relationship between inflation and what? A) Unemployment. B) GDP. C) Price level. D) Inflation. Show Answer Correct Answer: A) Unemployment. 10. What is used to measure inflation? A) A ruler. B) CPI Consumer Price Index. C) A scale. D) None of above. Show Answer Correct Answer: B) CPI Consumer Price Index. 11. Using the following figures, please find GDP. C = 11.2 billion I = 2.5 billion G = 3.1 billion X = 2.2 billion M = 2.7 billion. A) $ 16.8 billion. B) $ 15.8 billion. C) $ 21.7 billion. D) $ 16.3 billion. Show Answer Correct Answer: D) $ 16.3 billion. 12. Real GDP is a measure of A) Average price level in economy. B) Value of final output produced within a country in one year, using current prices. C) Value of final output produced within a country in one year, adjusted for changing prices. D) Total value of available resources in a nation. Show Answer Correct Answer: C) Value of final output produced within a country in one year, adjusted for changing prices. 13. Which does not belong? A) Net exports. B) Consumer spending. C) Government spending. D) Input prices. Show Answer Correct Answer: D) Input prices. 14. What does CPI measure? A) The average change in prices of goods and services consumed by households. B) The total value of goods and services produced within a country's borders over a specific period of time. C) The percentage of the labor force that is unemployed and actively seeking work. D) None of above. Show Answer Correct Answer: A) The average change in prices of goods and services consumed by households. 15. The current prices that we pay for goods and services. A) Sticky prices. B) Inflation. C) Current dollars. D) Weight. Show Answer Correct Answer: C) Current dollars. 16. An increase in taxes combined with a decrease in government purchases would A) Increase AD. B) Decrease AD. C) Leave AD unchanged. D) Have an indeterminate effect on AD. Show Answer Correct Answer: B) Decrease AD. 17. What is the main reason for employing expansionary fiscal policy during a recession? A) To decrease aggregate demand and slow down the economy. B) The main reason for employing expansionary fiscal policy during a recession is to stimulate economic growth and increase aggregate demand by increasing government spending and cutting taxes. C) To reduce government spending and increase taxes. D) To maintain the current level of economic growth . Show Answer Correct Answer: B) The main reason for employing expansionary fiscal policy during a recession is to stimulate economic growth and increase aggregate demand by increasing government spending and cutting taxes. 18. Studying how consumer demand reacts to advertising A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: B) Microeconomic. 19. Based on the following data:Agriculture (Ag)-1, 850, 311.00 Services (Se)-2, 075, 400.00 Industry (In)-2, 550, 000.00NFIA-4, 010, 758.00 the GNI using the Value Added Approach is: A) 8, 379, 015.00. B) 9, 901, 015.00. C) 9, 089, 050.00. D) 10, 486, 469.00. Show Answer Correct Answer: D) 10, 486, 469.00. 20. What are the subtopics covered in chapter 1 and 2 of Mankiw's macroeconomics? A) Refer to the book for the specific subtopics covered in chapter 1 and 2 of Mankiw's macroeconomics. B) International trade and exchange rates. C) Fiscal policy and monetary policy. D) Aggregate demand and aggregate supply. Show Answer Correct Answer: A) Refer to the book for the specific subtopics covered in chapter 1 and 2 of Mankiw's macroeconomics. ← 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