This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 210 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 210 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Unemployment caused by regular transition periods A) Frictional Unemployment. B) Structural Unemployment. C) Seasonal Unemployment. D) Discouraged Workers. Show Answer Correct Answer: A) Frictional Unemployment. 2. The Mundell-Fleming framework studies (A) ....., (B) ..... economies in a world with (C) ..... financial markets and (D) ..... capital mobility. A) (A) small; (B) open; (C) integrated; (D) free. B) (A) large; (B) open; (C) integrated; (D) free. C) (A) small; (B) mercantilist; (C) integrated; (D) free. D) (A) large; (B) open; (C) restricted; (D) free. Show Answer Correct Answer: A) (A) small; (B) open; (C) integrated; (D) free. 3. Saving in the economy: A) Occurs when current spending is less than current incomes. B) Is generally not a determinant of future output. C) And investment are essentially the same concept. D) Occurs when current consumption is more than current output. Show Answer Correct Answer: A) Occurs when current spending is less than current incomes. 4. Which is NOT one of the four basic economic questions? A) What to produce?. B) How to produce?. C) How much will it cost?. D) For whom to produce?. E) Who is to produce?. Show Answer Correct Answer: C) How much will it cost?. 5. A disease has been affecting banana crops, and at the same time, consumers learn that bananas cure baldness. What will happen to the price and quantity of bananas? A) Price and quantity will rise. B) Price will rise, while the quantity will fall. C) Price will fall, while quantity change is unknown. D) Price will rise, while the quantity change is unknown. Show Answer Correct Answer: D) Price will rise, while the quantity change is unknown. 6. An increase in which of the following will increase aggregate demand? A) Taxes. B) Government spending. C) The federal funds rate. D) Reserve requirements. E) The discount rate. Show Answer Correct Answer: B) Government spending. 7. What does inflation refer to in an economy? A) Decrease in overall prices. B) Increase in overall prices. C) Stagnant prices. D) Unchanged prices. Show Answer Correct Answer: B) Increase in overall prices. 8. Which of the following would be classified as fiscal policy? A) The federal government passes tax cuts to encourage firms to reduce air pollution. B) The Federal Reserve cuts interest rates to stimulate the economy. C) A state government cuts taxes to help the economy of the state. D) The federal government cuts taxes to stimulate the economy. Show Answer Correct Answer: D) The federal government cuts taxes to stimulate the economy. 9. Referring to the Keynesian curve, in the 'Keynesian Range' ..... A) Real GDP is low, price level is constant, and unemployment is high. B) Real GDP is high but falling, price level is falling, and unemployment is rising. C) Real GDP is rising, price level is rising, and unemployment is falling. D) Real GDP is at its peak, price level consistently rises, and unemployment is low. Show Answer Correct Answer: A) Real GDP is low, price level is constant, and unemployment is high. 10. Which of the following is true of the meaning of government budget surplus? A) Government revenue equals government expenditure. B) Government revenue is greater than government expenditure. C) Government revenue is less than government expenditure. D) All the points are correct. Show Answer Correct Answer: B) Government revenue is greater than government expenditure. 11. If you lose your job in this country you can claim unemployment and collect money to help you until you can find another job. This is because of economic A) Security. B) Freedom. C) Equity. D) Growth. Show Answer Correct Answer: A) Security. 12. Spending about which lawmakers are free to make choices, such as defense and education A) Mandatory spending. B) Discretionary spending. C) Entitlements. D) Tariffs. Show Answer Correct Answer: B) Discretionary spending. 13. The introduction of MP3 players made tape recorders obsolete. To the extent this caused higher unemployment among workers who had manufactured audio tapes, which type of unemployment was created? A) Frictional unemployment. B) Efficiency unemployment. C) Underemployment. D) Structural unemployment. E) Cyclical unemployment. Show Answer Correct Answer: D) Structural unemployment. 14. Finding the amount of Gross Domestic Product produced at all possible levels will determine A) Inflation. B) Growth. C) Aggregate demand. D) Aggregate supply. Show Answer Correct Answer: D) Aggregate supply. 15. Which of the following can lead to an increase in Aggregate Demand? A) Decrease in government spending. B) Increase in taxes. C) Increase in consumer spending. D) Decrease in imports. Show Answer Correct Answer: C) Increase in consumer spending. 16. The expenditure multiplier is A) 1/mpc. B) 1/(1-MPC). C) (1-mpc)/1. D) None of above. Show Answer Correct Answer: B) 1/(1-MPC). 17. A country's standard of living depend on its ability to produce goods and services A) True. B) False. Show Answer Correct Answer: A) True. 18. What are some limitations of CPI? A) It does not take into account changes in quality of goods and services. B) It measures the cost of living but not inflation. C) It is based on a basket of goods and services that is not representative of all households. D) None of above. Show Answer Correct Answer: B) It measures the cost of living but not inflation. 19. ..... is the use of changes in the interest rate or the money supply by the central bank to stabilize the economy. A) Discretionary Monetary Policy. B) Monetary Policy Rule. C) Political Business Cycle. D) Macroeconomic Policy Activism. Show Answer Correct Answer: A) Discretionary Monetary Policy. 20. The long run aggregate supply curve is vertical because ..... A) Price level increases but GDP doesn't. B) GDP increases but price level doesn't. C) GDP decreases but price level doesn't. D) Price level decreases but GDP doesn't. Show Answer Correct Answer: A) Price level increases but GDP doesn't. ← 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