This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 253 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 253 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. According to the short-run Phillips curve, if the central bank increases the money supply, then A) Inflation and unemployment will both fall. B) Inflation and unemployment will both rise. C) Inflation will fall and unemployment will rise. D) Inflation will rise and unemployment will fall. Show Answer Correct Answer: D) Inflation will rise and unemployment will fall. 2. The average years of education per person in Islandia increased by 3 years over the period 2010-2015.What determinant of productivity changed, and how would that impact Islandia's long-run aggregate supply curve (LRAS)? A) Technology increased; no impact on LRAS. B) Technology increased; LRAS increased. C) Human capital increased; LRAS shifts right. D) Labor increased; no impact on LRAS. E) Capital increased; LRAS increased. Show Answer Correct Answer: C) Human capital increased; LRAS shifts right. 3. What unemployment rates are the best? A) No unemployment rates are ideal. B) Low but not too low unemployment rates are ideal. C) High unemployment rates are ideal. D) None of above. Show Answer Correct Answer: B) Low but not too low unemployment rates are ideal. 4. GDP tends to underestimate the productive activity in the economy because it excludes the value of output from:Select one: A) Public transfer payments to households. B) The consumption of fixed capital. C) The underground economy. D) Intermediate goods. Show Answer Correct Answer: C) The underground economy. 5. How do government budget deficits impact the national debt? A) Government budget deficits decrease the national debt. B) Government budget deficits do not impact either the state or national debt. C) Government budget deficits increase the national debt. D) Government budget deficits only impact the state debt. Show Answer Correct Answer: C) Government budget deficits increase the national debt. 6. The assumption that prices are sticky means that prices A) Have to be attached to products. B) Do not change in a short run. C) Follow movements of demand and supply. D) None of above. Show Answer Correct Answer: B) Do not change in a short run. 7. What do you call a person who starts a business? Choose the best answer. A) Investor. B) Realtor. C) Entrepreneur. D) Economist. Show Answer Correct Answer: C) Entrepreneur. 8. Name a group that was badly effected by hyperinflation. A) Pensioners. B) Farmers. C) Big business owners. D) Landowners. Show Answer Correct Answer: A) Pensioners. 9. Two sector economy consists of: A) Households, firms. B) Firms, foreign sector. C) Households, government. D) Firms, government. Show Answer Correct Answer: A) Households, firms. 10. When a person keeps bees for their honey, but then their neighbor also benefits by having their fruit trees pollinated is an example of: A) Negative Externality. B) Positive Externality. C) An increase in Standard of Living. D) A decrease in Gross Domestic Product. Show Answer Correct Answer: B) Positive Externality. 11. Output A) Quantity of goods or services produced in a given time period, by a firm, industry, or country. B) All human-made goods that are used to produce other goods and services; tools and buildings. C) A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good. D) The most desirable alternative given up as the result of a decision. Show Answer Correct Answer: A) Quantity of goods or services produced in a given time period, by a firm, industry, or country. 12. Macroeconomics is also known as ..... A) Theory of price and output determination. B) Theory of income and employment. Show Answer Correct Answer: B) Theory of income and employment. 13. Which graph has the nominal interest rate on the y axis? A) AD/AS Model. B) Money Market. C) Loanable Funds. D) Phillips Curve. Show Answer Correct Answer: B) Money Market. 14. Which of the following purchases is included in the calculation of gross domestic product? A) A used economics textbook from the bookstore. B) 1, 000 shares of stock in a computer firm. C) A car produced in a foreign country. D) New harvesting equipment for the farm. Show Answer Correct Answer: D) New harvesting equipment for the farm. 15. Arizona's GDP is similar to A) Singapore. B) United Kingdom. C) China. D) South Africa. Show Answer Correct Answer: A) Singapore. 16. Changes in the price level of consumer goods results in ..... A) AD curve shifting left. B) AD curve shifting right. C) A move along the AD curve. D) AS curve shifting left. Show Answer Correct Answer: C) A move along the AD curve. 17. Unemployment measures ..... A) The value of all final goods and services produced. B) An increase in the general price level. C) The percentage of people looking for work that can't find it. D) The economic freedom an economy offers. Show Answer Correct Answer: C) The percentage of people looking for work that can't find it. 18. In general, when does a Monopoly become bad? A) When they drop prices of a good, which does not hurt consumers. B) When they raise the price of a good, which could hurt consumers. C) Only when they own over 95% of the market on a particular good or service. D) All of the above. Show Answer Correct Answer: B) When they raise the price of a good, which could hurt consumers. 19. Occurs in the federal government's budget when the tax revenue received for a given fiscal year is less than the amount of spending done by the government during that year. A) Deficit. B) National debt. C) Budget surplus. D) None of above. Show Answer Correct Answer: A) Deficit. 20. According to the quantity theory of money A) $M\times Y=V\times P$. B) $M\times V=P\times Y$. C) $M=P\times Y$. D) None of above. Show Answer Correct Answer: B) $M\times V=P\times Y$. ← 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