This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 234 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 234 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Contractionary Fiscal Policy Is What? A) Policy that is aimed to reduce inflation. B) Where there is a change in interest rates to cause a decline in the economy. C) The gap that leads to lower GDP and a higher price level. D) Laws that reduce unemployment and increase GDP. Show Answer Correct Answer: A) Policy that is aimed to reduce inflation. 2. Money interest has been known long before Christ (Sumerian and Babylonian times). The age of the Flower Concept is very old. The book that prohibits wearing flowers can be found in the book..... A) Torah. B) Gospel. C) The Quran. D) All answers are correct. Show Answer Correct Answer: D) All answers are correct. 3. Gross domestic product is the sum of the market value of the ..... goods and services A) Normal. B) Inferior. C) Final. D) Intermediate. Show Answer Correct Answer: C) Final. 4. Which of the following types of unemployment is caused by a recession? A) Hidden. B) Frictional. C) Seasonal. D) Structural. E) Cyclical. Show Answer Correct Answer: E) Cyclical. 5. What is the key aim of supply-side policies? A) Increase economic growth. B) Reduce price level. C) Improve the environment. D) Reduce government spending. Show Answer Correct Answer: A) Increase economic growth. 6. What always results in an increase in price and quantity? A) Human and physical. B) Total satisfaction or benefit from consuming a good or service. C) The action of buying and selling goods and services. D) An increase in demand with no change in supply. Show Answer Correct Answer: D) An increase in demand with no change in supply. 7. The ..... shows the various combinations of output and the interest rate when the goods market is in equilibrium A) LM curve. B) IS curve. C) Demand curve. D) Supply curve. Show Answer Correct Answer: B) IS curve. 8. The so-called "natural" ( or post-WWII average ..... ) rate of unemployment (URN) in the US is approximately: A) 4%. B) 6%. C) 8%. D) 12%. Show Answer Correct Answer: B) 6%. 9. What is NOT included in GDP? A) Intermediate goods. B) Stocks, bonds, real estate. C) Illegal activities. D) All of these are correct. Show Answer Correct Answer: D) All of these are correct. 10. What is the difference between expansionary monetary policy and contractionary monetary policy? A) Expansionary policy involves increasing the money supply, while contractionary policy involves decreasing the money supply. B) Expansionary policy involves decreasing interest rates, while contractionary policy involves increasing interest rates. C) Expansionary policy involves increasing government spending, while contractionary policy involves decreasing government spending. D) None of the above. Show Answer Correct Answer: A) Expansionary policy involves increasing the money supply, while contractionary policy involves decreasing the money supply. 11. Which statement best describes monetary policy and fiscal policy? A) Monetary policy reflects the Federal Reserve's authority to change the money supply; fiscal policy reflects the government's power to influence the economy through taxes, expenditures, and borrowing. B) Monetary policy reflects the Federal Reserve's authority to change tax rates; fiscal policy reflects the government's power to influence the money supply by lowering the discount rate for loans to banks. C) Monetary Policy refers to the Federal Reserve;s influence in the economy through borrowing and creating a deficit; fiscal policy refers to the government's authority to increase the discount rate for loans to bank. D) None of above. Show Answer Correct Answer: A) Monetary policy reflects the Federal Reserve's authority to change the money supply; fiscal policy reflects the government's power to influence the economy through taxes, expenditures, and borrowing. 12. What is is the deliberate attempt by RBI to keep foreign exchange rate in a desired limit is called A) Depreciation of currency. B) Appreciation of currency. C) Adjustable peg. D) Managed float. Show Answer Correct Answer: D) Managed float. 13. He country of Aceland produces two goods, televisions and computers. Last year, it produced 200 televisions and 500 computers; this year it produced 250 televisions and 600 computers. Given no other information, which of the following events could NOT explain this change? A) Aceland experienced a decrease in unemployment. B) Aceland experienced an improvement in computer-making technology. C) Aceland acquired more resources. D) Aceland experienced an increase in underemployment. Show Answer Correct Answer: D) Aceland experienced an increase in underemployment. 14. Which of the following is a supply-side policy aimed at improving technological innovation? A) Increasing interest rates. B) Increasing government spending. C) Investing in research and development. D) Implementing price controls. Show Answer Correct Answer: C) Investing in research and development. 15. A continuous increase in the consumer price index is A) Deflation. B) Stagflation. C) Inflation. D) Recession. E) Disinflation. Show Answer Correct Answer: C) Inflation. 16. Which is NOT a macroeconomic goal? A) Steady economic growth. B) Full employment. C) Increased money supply. D) Price stability. Show Answer Correct Answer: C) Increased money supply. 17. An index that measures the prices of a 'basket' of goods that typical consumers purchase. A) Government Index. B) Consumer Price Index. C) National Bank. D) Deflation. Show Answer Correct Answer: B) Consumer Price Index. 18. The interest rate the Fed charges commercial banks for loans A) Fed Fund Rate. B) Reserve Requirement Rate. C) Discount Rate. D) I.O.U Rate. Show Answer Correct Answer: C) Discount Rate. 19. According to Tobin's theory of the asset demand for money, an increase in uncertainty concerning bond prices would be expected to cause the demand for A) Money to fall and the demand for bonds to rise. B) Bonds to fall and the demand for money to rise. C) Both money and bonds to rise. D) Both money and bonds to fall. Show Answer Correct Answer: B) Bonds to fall and the demand for money to rise. 20. Microeconomics deals with A) Economy as a whole. B) Individual. C) None of these. D) Both economy as whole and individual. Show Answer Correct Answer: B) Individual. ← 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