This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 245 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 245 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Federal Reserve System controls the size of the A) Tax supply. B) Money supply. C) Demand supply. D) Production supply. Show Answer Correct Answer: B) Money supply. 2. Which of the following statements are true of the aggregate supply curve? A) The aggregate supply curve describes the relationship between the quantity of output supplied in the short run and the price level. B) The aggregate supply curve shifts leftward when costs of production increase. C) The aggregate supply curve shifts rightward when costs of production decrease. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. What is the trough in the business cycle? A) The accumulation of government deficits over the years. B) The highest point of Real GDP. C) The lowest point of Real GDP. D) The period of falling Real GDP. Show Answer Correct Answer: C) The lowest point of Real GDP. 4. Patrick works in the oilfield and the low gas prices have caused his company to temporarily lay people off! He is experiencing what kind of unemployment? A) Structural. B) Cyclical. C) Seasonal. D) Frictional. Show Answer Correct Answer: D) Frictional. 5. What is the main difference between M1 and M2 as measures of money? A) M2 includes the value of checking accounts while M1 does not. B) M2 includes the value of savings accounts with longer maturities while M1 does not. C) M2 includes the value of traveler's checks while M1 does not. D) M2 includes the value of government bonds while M1 does not. E) M2 includes the value of mutual funds while M1 does not. Show Answer Correct Answer: B) M2 includes the value of savings accounts with longer maturities while M1 does not. 6. What will happen to the demand for money if real GDP rises? A) It will decrease. B) It will be unchanged. C) It will increase. D) It depends on what happens to interest rates. Show Answer Correct Answer: C) It will increase. 7. Which of the following is NOT TRUE concerning the Great Recession? A) The programs used to stimulate the economies relied on Classical economic thinking. B) Different countries used distinct approaches to counter the recession. C) Unemployment benefits were an important part of the United States Stimulus Program. D) There is still a debate concerning the effects of the measures used to counter the Great Recession on the slow economic growth since then. E) All of these statements are accurate. Show Answer Correct Answer: A) The programs used to stimulate the economies relied on Classical economic thinking. 8. What type of unemployment occurs when a person is in between jobs? A) Frictional Unemployment. B) Structural Unemployment. C) Seasonal Unemployment. D) Demand-deficient Unemployment. Show Answer Correct Answer: A) Frictional Unemployment. 9. A centrally planned economy promotes..... A) Government ownership, competition, and no profit. B) Government ownership, profit, and no competition. Show Answer Correct Answer: B) Government ownership, profit, and no competition. 10. A name meant to emphasize that workers are free not to join a union A) Right to Work Law. B) Right to be Free Law. C) Work Right Law. D) Non-Union Law. Show Answer Correct Answer: A) Right to Work Law. 11. The government begins training programs to teach computer repair and website design to unemployed adults. Which kind of unemployment would such training help MOST? A) Frictional. B) Seasonal. C) Structural. D) Cyclical. Show Answer Correct Answer: C) Structural. 12. ..... are stocks of goods and raw materials held to facilitate business operations. A) Inventories. B) Stocks. C) Bonds. D) Product Markets. Show Answer Correct Answer: A) Inventories. 13. Interest rates will tend to rise when A) The quantity of money demanded exceeds the quantity supplied. B) The quantity of money supplied exceeds the quantity demanded. C) The supply of money curve shifts to the right. D) The demand for money curve shifts to the left. Show Answer Correct Answer: A) The quantity of money demanded exceeds the quantity supplied. 14. Deficit measures how much more expensive a set of goods and services has become over a certain period, usually a year A) True. B) False. Show Answer Correct Answer: B) False. 15. Who is in the labor force? A) -Above 16 years;-Able/willing to work. B) All of these are correct. C) -Not institutionalized (jail/hospital). D) -Not in military, in school full time, or retired. Show Answer Correct Answer: B) All of these are correct. 16. Which action could the U.S. government use to protect domestic automobile manufacturers from foreign competition? A) Increase taxes on the production and sale of U.S. automobiles. B) Increase tariffs and import restrictions on foreign automobiles. Show Answer Correct Answer: B) Increase tariffs and import restrictions on foreign automobiles. 17. Inflow of Foreign exchange is recorded on which side of BOP A) Debit. B) Credit. C) Both. D) None. Show Answer Correct Answer: B) Credit. 18. If the nominal wage rises more than the price level, the real wage..... A) Will grow. B) Will not change. C) Will decrease. D) Unable to answer due to lack of labor supply and demand data. Show Answer Correct Answer: A) Will grow. 19. On a micro graph, which of the following might cause demand to decrease? A) A rise in the popularity of a product. B) Increase in the disposable income of consumers. C) A substitute good is available at a cheaper price. D) A complementary good is now available at a cheaper rate. Show Answer Correct Answer: C) A substitute good is available at a cheaper price. 20. It captures the prices of goods and services that consumers typically buy. A) Total Weighted Price. B) Weighted Price. C) Consumer Price Index. D) Consumer Product Index. Show Answer Correct Answer: C) Consumer Price Index. ← 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