This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 262 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 262 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ONE of the following DOES NOT shift the AD curve A) Wages. B) Monetary policy. C) Fiscal policy. D) Exchange rate. E) Consumer and Investment sentiments. Show Answer Correct Answer: A) Wages. 2. What is the aggregate supply curve? A) The aggregate supply curve represents the total amount of goods and services that firms are willing to produce and sell at the same price level in an economy. B) The aggregate supply curve represents the total amount of goods and services that firms are willing to produce and sell at different price levels in an economy. C) The aggregate supply curve represents the total amount of goods and services that firms are willing to produce and sell at different price levels in a specific industry. D) The aggregate supply curve represents the total amount of goods and services that consumers are willing to purchase at different price levels in an economy. Show Answer Correct Answer: B) The aggregate supply curve represents the total amount of goods and services that firms are willing to produce and sell at different price levels in an economy. 3. Exists when the amount of income received exceeds the amount of expenses paid A) Budget deficit. B) Budget surplus. Show Answer Correct Answer: B) Budget surplus. 4. The long-run Phillips curve illustrates which of the following? A) A positive relationship between unemployment and inflation. B) A negative relationship between unemployment and inflation. C) That unemployment will always return to the NAIRU. D) That unemployment will adjust so that the economy experiences 2% inflation. E) That output will adjust so that there is no unemployment or inflation in the long run. Show Answer Correct Answer: C) That unemployment will always return to the NAIRU. 5. The county charges the Henry family a tax on the value of the house they own. What kind of tax is this? A) Income. B) Property. C) Payroll. D) Sales. Show Answer Correct Answer: B) Property. 6. Dissavings is known as following EXCEPT A) Negative saving. B) At very high disposable income. C) C>Y. D) At very low levels of disposable income. Show Answer Correct Answer: B) At very high disposable income. 7. Budget deficits cause the government to borrow money, which adds to government ..... A) Barter. B) Currency. C) Debt. D) None of above. Show Answer Correct Answer: C) Debt. 8. When Carly, a college Biology professor, leaves her job at a small rural college and starts looking for a job at a large urban university she is A) Frictionally Unemployed. B) Structurally Unemployed. C) Cyclically Unemployed. D) A discouraged worker. Show Answer Correct Answer: A) Frictionally Unemployed. 9. A supply shock which reduces aggregate supply A) May increase the level of equilibrium output as it raises the price level. B) May lower the price level and the level of equilibrium output. C) May reduce the equilibrium output as it raises the price level. D) Is represented by shifting the aggregate supply curve downward. Show Answer Correct Answer: C) May reduce the equilibrium output as it raises the price level. 10. Which of the following is used to measure inflation from year to year? A) Consumer Peace Index. B) Consumer Price Index. C) Supply & Demand. D) Market Value of Homes. Show Answer Correct Answer: B) Consumer Price Index. 11. Rising unemployment will have an impact ..... on the equity market. A) Positif. B) Negative. C) Constant. D) All three are correct. Show Answer Correct Answer: B) Negative. 12. Which of the following terms refers to the average increase of prices across an economy in a given month or year? A) Hyperinflation. B) Deflation. C) Unemployment. D) Inflation. Show Answer Correct Answer: D) Inflation. 13. The balanced budget multiplier ..... A) Requires a specific MPC value to calculate. B) Is always greater than 1.0. C) Assumes that government spending exceeds tax revenues. D) Is not accurately described by any of the other answers. Show Answer Correct Answer: D) Is not accurately described by any of the other answers. 14. In a recession, appropriate monetary policy would tend to be for the Fed to ..... bonds to ..... AD. A) Buy; increase. B) Buy; decrease. C) Sell; increase. D) Sell; decrease. Show Answer Correct Answer: A) Buy; increase. 15. A fall in price cause a ..... in AS. A) Expansion. B) Contraction. C) Increase. D) None of the options. Show Answer Correct Answer: B) Contraction. 16. *moderate deflation will NOT A) Lower the nominal interest rate. B) Reduce the cost of holding money. C) Increase the cost of holding money. D) None above. Show Answer Correct Answer: C) Increase the cost of holding money. 17. The problem of unlimited desires and limited resources is the problem of A) Wants. B) Marginal benefit. C) Scarcity. D) Free enterprise. Show Answer Correct Answer: C) Scarcity. 18. If price level increase, the LM curve will ..... A) Shift up. B) Shift to the right. C) Shift down. D) Shift to the left. Show Answer Correct Answer: D) Shift to the left. 19. How are prices determined in a free market? A) By supply and demand. B) By government regulations. C) By producer preferences. D) By social factors. Show Answer Correct Answer: A) By supply and demand. 20. The ability to produce a good or service at a lower opportunity cost than another country A) Dependent. B) Absolute advantage. C) Comparative advantage. D) Specialization. Show Answer Correct Answer: C) Comparative advantage. ← 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