This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 235 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 235 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A period in which real output falls during a business cycle is referred to as a(n) ....., and would be represented in the graph by a movement from ..... A) Expansion; point A to point B. B) Recession; point A to point B. C) Expansion; point B to point D. D) Recession:point B to point D. Show Answer Correct Answer: D) Recession:point B to point D. 2. Which of the following choices would be a factor that contributes to a nation's rapid long-run economic growth? A) Faster technological progress. B) Faster population growth. C) Less physical capital per worker. D) Lower levels of average human capital. E) Higher tax rates on high-tech industries. Show Answer Correct Answer: A) Faster technological progress. 3. When deviations above and below the target are given equal weight in the inflation target A) Asymmetric inflation target. B) Symmetric inflation target. C) Balanced inflation target. D) Unbalanced inflation target. Show Answer Correct Answer: B) Symmetric inflation target. 4. How many members are there in the FOMC? A) 12. B) 13. C) 11. D) 7. Show Answer Correct Answer: A) 12. 5. In the past 12 months, Mia has made 4 late payments on her credit card. How will this affect her credit score? A) Her score will go up. B) Her score will stay the same. C) She will likely get more credit card offers. D) Her credit score will go down. Show Answer Correct Answer: D) Her credit score will go down. 6. Fiscal policy is created and implemented by A) Congress and the President. B) The Federal Reserve. Show Answer Correct Answer: A) Congress and the President. 7. Housing is a normal good. If average salary increases, what can we expect to happen in the housing market? A) Rightward shift in supply. B) Leftward shift in supply. C) Rightward shift in demand. D) Leftward shift in demand. Show Answer Correct Answer: C) Rightward shift in demand. 8. In order to have a farm, which factor of production do you need (at least to start)? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: A) Land. 9. The percentage that a lender charges a borrower in exchange for a loan. A) Inflation. B) Deflation. C) Interest rate. D) Real GDP. Show Answer Correct Answer: C) Interest rate. 10. Strikes, Pickets, and Boycotts are all ways in which whom makes their demands met? A) Employers. B) Unions. C) Capital. D) The President. Show Answer Correct Answer: B) Unions. 11. Which of the following individuals is classified as unemployed? A) A fifteen-year-old high school student who is looking for a babysitting job. B) A laid-off computer programmer who has given up looking for a new job. C) A parent who works in an after-school day care center for 15 hours a week. D) A recent college graduate who is looking for her first job. E) A mayor who lost an election and retired. Show Answer Correct Answer: D) A recent college graduate who is looking for her first job. 12. According to the classical macroeconomic model, an increase in the money supply will result in an increase in which of the following in the long run? A) Employment. B) Unemployment. C) Real gross domestic product. D) Nominal gross domestic product. E) Real wages. Show Answer Correct Answer: D) Nominal gross domestic product. 13. An expansionary monetary policy will be most effective in increasing real output if A) Investment spending is sensitive to changes in interest rates. B) Money demand is sensitive to changes in interest rates. C) Wages and prices are perfectly flexible. D) Corporate income tax rates increase. E) Complete crowding-out occurs. Show Answer Correct Answer: A) Investment spending is sensitive to changes in interest rates. 14. Which of the following variables is not included in the Europe 2020 indicator set? A) Employment rate. B) Gross domestic expenditure on Research and Development. C) Subjective wellbeing. D) People at risk of poverty or social exclusion. E) Greenhouse gas emission. Show Answer Correct Answer: C) Subjective wellbeing. 15. Someone in between jobs A) Frictional Unemployment. B) Structural Unemployment. C) Discouraged Workers. D) Fully Employed. Show Answer Correct Answer: A) Frictional Unemployment. 16. The federal government's overall approach to spending and taxes is called A) Physical Policy. B) Fiscal Policy. C) Money. D) Monetary Policy. Show Answer Correct Answer: B) Fiscal Policy. 17. What is the role of government in stabilizing the economy? A) The government has no role in stabilizing the economy. B) The government plays a key role in stabilizing the economy through fiscal and monetary policies. C) The government only focuses on stabilizing the stock market. D) The government relies on individual decision making to stabilize the economy. Show Answer Correct Answer: B) The government plays a key role in stabilizing the economy through fiscal and monetary policies. 18. An important economic indicator that shows the sum (total value) of all final goods and services produced in an economy. A) Gross Domestic Product. B) Full Employment. C) Inflation. D) Deflation. Show Answer Correct Answer: A) Gross Domestic Product. 19. What is not involved in the construction of a retail price index? A) A base year. B) A basket of goods. C) The income tax rate. D) The weighting of products. Show Answer Correct Answer: C) The income tax rate. 20. If an economy experiences a dramatic rise in prices, which fiscal policy action could be taken? A) Selling securities on the open market. B) Raising interest rates. C) Reducing government spending. D) Raising reserve requirements. Show Answer Correct Answer: C) Reducing government 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