This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 256 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 256 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The ..... represents the negative short-run relationship between the unemployment rate and the inflation rate. A) Short-Run Phillips Curve. B) Long-Run Phillips Curve. C) Short-Run Aggregate Supply. D) Short-Run Aggregate Demand. Show Answer Correct Answer: A) Short-Run Phillips Curve. 2. If the central bank wants to expand aggregate demand, it can ..... the money supply, which would ..... the interest rate. A) Increase, increase. B) Increase, decrease. C) Decrease, increase. D) Decrease, decrease. Show Answer Correct Answer: B) Increase, decrease. 3. How does investment in capital goods by companies help a country increase its GDP? A) The GDP of a country goes down when companies make more money. B) Companies that invest in capital goods are able to provide a better place for their workers to work. C) Highly trained workers help the company be more profitable by finding ways to help the company work better. D) When a company invests in capital, it can produce more goods at a better price and increase the profit that it makes. Show Answer Correct Answer: D) When a company invests in capital, it can produce more goods at a better price and increase the profit that it makes. 4. In macroeconomics, we study about A) Theory of National Income & Employment. B) Theory of Money Supply & Price Level. C) Theory of International Trade and Economic growth. D) All of the above. Show Answer Correct Answer: D) All of the above. 5. The increase in unemployment caused by the recession phase of the business cycle is called A) Frictional unemployment. B) Structural unemployment. C) Cyclical unemployment. D) Seasonal Unemployment. Show Answer Correct Answer: C) Cyclical unemployment. 6. What would be the effect of the United States establishing tariffs on solar energy products from China? A) Chinese consumers would purchase more U.S. solar products. B) U.S. consumers would pay more for Chinese solar products. C) Chinese solar manufacturers would lower domestic prices. D) U.S. solar manufacturers would slow production. Show Answer Correct Answer: B) U.S. consumers would pay more for Chinese solar products. 7. Assume that the marginal propensity to consume out of disposable income is 0.8 and that the government taxes all income at a constant rate of 30 percent. If gross income increases by $ 100, consumption will initially increase by A) $ 44. B) $ 56. C) $ 70. D) $ 80. E) $ 100. Show Answer Correct Answer: B) $ 56. 8. In the Mundell-Fleming model, the domestic interest rate is determined by the: A) Intersection of the LM and IS curves. B) Domestic rate of inflation. C) World rate of inflation. D) World interest rate. Show Answer Correct Answer: D) World interest rate. 9. In terms of resources, what do households provide for businesses? A) Loans. B) Savings. C) Labor. D) Private goods. Show Answer Correct Answer: C) Labor. 10. Which of the following is an example of intermediate goods?(i) (ii)(iii) (iv) A) Car sold by a dealer of secondhand cars. B) Steel and cement used to construct a flyover. C) Fertilizer purchased by a farmer. D) All of these. Show Answer Correct Answer: A) Car sold by a dealer of secondhand cars. 11. What are the three main outcomes policymakers pursue to stabilize the economy? A) High employment, steady growth, stable prices. B) Low employment, rapid growth, fluctuating prices. C) High employment, rapid growth, stable prices. D) Low employment, steady growth, fluctuating prices. Show Answer Correct Answer: A) High employment, steady growth, stable prices. 12. The main stream view among economist is that A) Society face is a trade-off between unemployment and inflation, but only in the short run. B) Society face is a trade-off between unemployment and inflation, but only in the long run. C) Society face as a trade off between unemployment and inflation, but in the short run and in the long run. D) The trade-off exists for unemployment in the short run and for inflation in the long run. Show Answer Correct Answer: A) Society face is a trade-off between unemployment and inflation, but only in the short run. 13. Discount Rate is the fee that A) The member bank must pay the district bank for a loan. B) You and I must pay our bank for a loan. C) The district bank pays the national bank for a loan. D) The FED pays FOMC for services. Show Answer Correct Answer: A) The member bank must pay the district bank for a loan. 14. Income that is actually received by individuals and households in an economy in a year is ..... A) Value added. B) Personal income. C) Transfer payments. D) Nominal national income. Show Answer Correct Answer: B) Personal income. 15. Why doesn't GDP count intermediate goods? A) The intermediate value may have different stages. B) Intermediate value cannot be calculated. C) Intermediate value is calculated into GNP. D) Intermediate value is included in the value of the final good. Show Answer Correct Answer: D) Intermediate value is included in the value of the final good. 16. Which of the following is NOT an implicit liability of the US Government A) Social Security. B) Medicare. C) Medicaid. D) Military Budget. Show Answer Correct Answer: D) Military Budget. 17. Central bank A) Committee that makes decisions that affect the economy as a whole by manipulating the money supply. B) An institution that lends money to other banks; also where government does its banking business. C) Manipulation of the money supply in attempts to keep the economy stable; implemented by the Federal Reserve. D) When people, businesses, regions, nations, etc. concentrate on goods and/or services they can produce better than others. Show Answer Correct Answer: B) An institution that lends money to other banks; also where government does its banking business. 18. The required reserve ratio is 0.2 and the Federal Reserve sells $ 1 million in securities. If there are no leakages and banks do not hold excess reserves, then which of the following is the change in the money supply? A) An increase of $ 1 million. B) An increase of $ 1.2 million. C) An increase of $ 5 million. D) A decrease of $ 1.2 million. E) A decrease of $ 5 million. Show Answer Correct Answer: E) A decrease of $ 5 million. 19. Which one of the following is the best example of commodity money? A) Goldd coins. B) Business stocks. C) Valuable painting. D) Dollar bills. E) Real estate. Show Answer Correct Answer: A) Goldd coins. 20. Which of the following terms refers to goods and services produced in the US and sold abroad? A) Exports. B) Imports. C) GDP. D) Factors of Production. Show Answer Correct Answer: A) Exports. ← 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