This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 237 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 237 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The long-run aggregate supply curve is A) A vertical line through the non-inflationary rate of output. B) A vertical line through the current level of output. C) A vertical line through the natural rate level of output. D) A horizontal line through the current level of output. Show Answer Correct Answer: C) A vertical line through the natural rate level of output. 2. Kevin lost his job a year ago and he has stopped looking for a new one. Kevin is currently considered what? A) A discouraged worker. B) Fully underemployed. C) Situationally unemployed. D) Frictionally unemployed. Show Answer Correct Answer: A) A discouraged worker. 3. Which answer choice represents a fiscal policy rather than a monetary policy? A) The establishment of reserve requirements. B) An increase in government spending. C) Lowering the money supply. D) The setting of interest rates. Show Answer Correct Answer: B) An increase in government spending. 4. Fiscal Policy is controlled by ..... A) The Government. B) The Federal Reserve System. C) The states. D) The Department of Commerce. Show Answer Correct Answer: A) The Government. 5. What is included in macroeconomics? A) The causes of a change in the price of one product. B) The causes of a market failure. C) The causes of determinants of price elasticities of supply. D) The causes of economic growth. Show Answer Correct Answer: D) The causes of economic growth. 6. To counteract a recession, the Fed could A) Buy government bonds on the open market and raise the reserve requirement. B) Buy government bonds on the open market and lower the reserve requirement. C) Buy government bonds on the open market and raise the discount rate. D) Sell government bonds on the open market and raise the discount rate. Show Answer Correct Answer: B) Buy government bonds on the open market and lower the reserve requirement. 7. Expansionary fiscal policy at home ie. increase in G or decrease in T A) Impacts saving, shift to the left, no impact on I. B) Impacts saving, shift to the right, no impact on I. C) Impacts I, shift to the left, no impact on saving. D) Impacts I, shift to the right, no impact on saving. Show Answer Correct Answer: A) Impacts saving, shift to the left, no impact on I. 8. If consumption spending totals $ 40 million, investment is $ 30 million, tax revenue totals $ 15 million, government spending is $ 10 million, exports are $ 3 million and imports are $ 5 million, GDP is ..... A) $ 103 million. B) $ 80 million. C) $ 93 million. D) $ 78 million. Show Answer Correct Answer: D) $ 78 million. 9. Who influences the total output of the Chinese economy? A) The Chinese government. B) Chinese firms and the Chinese government. C) Chinese households and Chinese firms. D) Chinese households, Chinese firms, and the Chinese government. Show Answer Correct Answer: D) Chinese households, Chinese firms, and the Chinese government. 10. Which is NOT a key component of the definition of Gross Domestic Product? A) Within a country's borders. B) Final new goods and services. C) Market value (expressed in dollars for the US). D) Money held in stocks and bonds. Show Answer Correct Answer: D) Money held in stocks and bonds. 11. The late works of ..... is related to macroeconomics. A) Marshall. B) Robbins. C) Adam Smith. D) Keynes. Show Answer Correct Answer: D) Keynes. 12. The overall goal of tax policy in the United States is to ensure that taxes are A) Low. B) Illegal. C) Equal. D) Fair. Show Answer Correct Answer: D) Fair. 13. The best example of a "cyclically unemployed" worker is one who: A) Reduces productivity by causing frictions in a business. B) Is laid off during a recessionary period in the economy. C) Is in the process of voluntarily switching jobs. D) Is discouraged and not actively seeking work. Show Answer Correct Answer: B) Is laid off during a recessionary period in the economy. 14. Governments use tax revenue from individuals and businesses to provide- A) Profits to buy more resources. B) Income to purchase products. C) For business expansion and increased consumption. D) Public goods and services. Show Answer Correct Answer: D) Public goods and services. 15. What is the term for the situation where more money is available for borrowing and investment? A) Loose money. B) Open market. C) Tight money. D) Fiscal policy. Show Answer Correct Answer: A) Loose money. 16. Which branch of macroeconomics specifically focuses on the problems of developing economies? A) Development Economics. B) Monetary Economics. C) Public Finance. D) Trade Cycle Theory. Show Answer Correct Answer: A) Development Economics. 17. During Tulip Mania, there was a surge in the price of tulip bulbs, making them worth more than their actual value which was not sustainable in the long run. This phenomenon is called a? A) Boom. B) Bust. C) Bubble. D) Breakdown. Show Answer Correct Answer: C) Bubble. 18. ..... is the accumulation of past budget deficits, minus past budget surpluses. A) Government Debt. B) Debt-GDP Ratio. C) Public Debt. D) Fiscal Year. Show Answer Correct Answer: A) Government Debt. 19. The Market system is not completely free of government intervention. Which of the following does government produce? A) Iphones. B) Roads & bridges. C) Cars. D) None of above. Show Answer Correct Answer: B) Roads & bridges. 20. Which of the following would most likely be a part of a nation's fiscal policy aimed at slowing the growth of the United States economy? A) Increasing government spending. B) Lower banking regulations. C) Higher income tax rates. D) Lowering sales tax rates. Show Answer Correct Answer: C) Higher income tax rates. ← 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