This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 179 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 179 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An appropriate fiscal policy to tackle sever inflation is ..... A) A tax rate increase. B) Depreciation of the currency. C) A reduction in interest rate. D) An increase in government spending. Show Answer Correct Answer: A) A tax rate increase. 2. If real gross domestic product is increasing at 3 percent per year and nominal gross domestic product is increasing at 7 percent per year, which of the following is necessarily true? A) Unemployment is increasing. B) The price level is increasing. C) Exports exceed imports. D) The economy is in a recession. E) The government is running a budget deficit. Show Answer Correct Answer: B) The price level is increasing. 3. A headline in the New York Times reads: "Thousands of U. S. auto makers lose jobs to workers in Mexico." After reading it you realize this story is a perfect example of ..... unemployment. A) Frictional. B) Seasonal. C) Cyclical. D) Structural. Show Answer Correct Answer: D) Structural. 4. Supporters of Keynesian economics believe that A) Government should be used as a tool to increase demand for goods. B) Demand for goods increases when prices rise. C) Taxes have a strong negative influence on economic output. D) The government should have a limited role in regulating the economy. Show Answer Correct Answer: A) Government should be used as a tool to increase demand for goods. 5. Measure of the overall level of prices in the economy A) CPI. B) Contractionary Fiscal Policy. C) Budget. D) Price Level. Show Answer Correct Answer: D) Price Level. 6. Lowering the tax rate is an example of ..... A) Expansionary fiscal policy. B) Contractionary fiscal policy. C) Expansionary monetary policy. D) Contractionary monetary policy. Show Answer Correct Answer: A) Expansionary fiscal policy. 7. What phase of the business cycle comes before a contraction? A) Trough. B) Peak. C) Recovery. D) Expansion. Show Answer Correct Answer: B) Peak. 8. The intersection of the aggregate demand and aggregate supply curve occurs at the economy's equilibrium level of A) Nominal investment and the interest rate. B) Government taxes and employment. C) Real disposable income and unemployment. D) Real domestic output and the price level. Show Answer Correct Answer: D) Real domestic output and the price level. 9. Paper money is included in ..... [Wang kertas termasuk dalam ..... ] A) M1, and M2 only [M1 dan M2 sahaja]. B) M1, M2 and M3 [M1, M2, dan M3]. C) M1 only [M1 sahaja]. D) M2 only [M2 sahaja]. Show Answer Correct Answer: B) M1, M2 and M3 [M1, M2, dan M3]. 10. On the business cycle, the lowest point in an economic recession is called A) Peak. B) Trough. C) Contraction. D) Expansion. Show Answer Correct Answer: B) Trough. 11. Inflationary 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: C) Output is high and unemployment is less than NRU. Actual GDP is above potential GDP. 12. What is meant by the term 'hyperinflation'? A) The rise in GDP following the end of a recession. B) A continuous general rise in prices. C) A general fall in prices. D) Very high levels of inflation. Show Answer Correct Answer: D) Very high levels of inflation. 13. The basic economic problem of all countries is the existence of A) Tax increases and budget deficits. B) Limited resources and unlimited wants. C) Unemployment and inflation. D) Government and private industry. E) Unions and monopoly firms. Show Answer Correct Answer: B) Limited resources and unlimited wants. 14. A market where economic decisions are made by the government A) Free market. B) Open market. C) Command market. D) Flea market. Show Answer Correct Answer: C) Command market. 15. Assuming Ramen is an inferior good, a decrease in income will shift the: A) Supply curve for Ramen to the left. B) Supply curve for Ramen to the right. C) Demand curve for ramen to the right. D) Demand curve for ramen to the left. E) There is no shift. Show Answer Correct Answer: C) Demand curve for ramen to the right. 16. According to the Laffer curve, decreasing tax rates A) On income will always increase tax revenues. B) On income will always decrease tax revenues. C) Are more likely to increase tax revenues the higher tax rates to start with. D) Are more likely to increase tax revenues the lower tax rates are to start with. Show Answer Correct Answer: C) Are more likely to increase tax revenues the higher tax rates to start with. 17. Comprehensive social security system encourage people on A) Future consumption. B) Current consumption. C) Saving for future. D) None of above. Show Answer Correct Answer: B) Current consumption. 18. Macroeconomics is concerned with: A) The level of output of goods and services in the economy. B) The general level of prices. C) GDP growth. D) All of these. Show Answer Correct Answer: D) All of these. 19. The unemployment rate excludes people who are not part of what? A) The population. B) Economics. C) Society. D) The Labor Force. Show Answer Correct Answer: D) The Labor Force. 20. The table below shows the cost of the same representative basket of goods in the base year 2012 and in 2013, and the average weekly nominal wage rate in 2012 and 2013 ..... 2012 ..... 2013Cost of a given basket of goods|$ 10, 000 | $ 12, 000Average weekly nominal wage | $ 1, 000 | $ 1, 100 If 2012 is the base year, which of the following is true? A) The inflation rate from 2012 to 2013 is 10%. B) The CPI in year 2013 is 110. C) The CPI in year 2013 is 120. D) Based on the CPI, the average real weekly wage rate increased by 10% from 2012 to 2013. E) Based on the CPI, the average real weekly wage rate decreased by 20% from 2012 to 2013. Show Answer Correct Answer: C) The CPI in year 2013 is 120. ← 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