This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 263 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 263 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Federal Reserve manages which of the following? A) Deficit. B) Gross Domestic Product. C) Fiscal Policy. D) Inflation. E) Monetary Policy. Show Answer Correct Answer: E) Monetary Policy. 2. The labour force participation rate is A) The percentage of people in the labour force who are employed and unemployed but seeking work. B) The percentage of people above 15 that are employed and unemployed but seeking work. C) The total number of unemployed persons. D) The percentage of people in the labour force who are unemployed but seeking work. E) The total number of unemployed and employed persons. Show Answer Correct Answer: B) The percentage of people above 15 that are employed and unemployed but seeking work. 3. The Fed uses monetary policy to? A) Prevent major changes in the business cycle. B) Quickly raise interest rates to slow down the economy. C) Quickly lower interest rates to speed up the economy. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. Incentive is one of the factors affecting ..... A) AD CURVE. B) AS CURVE. Show Answer Correct Answer: B) AS CURVE. 5. A general increase in prices across an economy. A) Gross Domestic Product. B) Consumer Price Index. C) Unemployment. D) Inflation. Show Answer Correct Answer: D) Inflation. 6. What of the following is NOT consider by the GDP. A) Earnings of residents or production outside the country. B) The value of the total goods and services produced. C) Government expenditure. D) National or International Investment. Show Answer Correct Answer: A) Earnings of residents or production outside the country. 7. The Federal government is concerned that economic growth is too high, that it is unsustainable, and that inflation is resulting. Which of the following fiscal policies might be enacted to reduce inflation? A) Increasing taxation. B) Open market sales. C) Decreasing taxation. D) Increasing government spending. Show Answer Correct Answer: A) Increasing taxation. 8. Joel is an economist who wants to measure the health of the nation's economy based on the average standard of living. Which would be the most useful economic indicator that Joel could use? A) GDP. B) Per capital GDP. Show Answer Correct Answer: B) Per capital GDP. 9. The questions included in macro analysis are as follows, except..... A) Why does every country face the problem of unemployment?. B) Why do prices always go up?. C) How are these goods and services produced?. D) Why is economic activity not experiencing stable development?. E) Why is the economy not experiencing the same rapid growth?. Show Answer Correct Answer: C) How are these goods and services produced?. 10. The price at which supply and demand are balanced A) Supply Price. B) Demand Price. C) Equilibrium Price. D) Sale Price. Show Answer Correct Answer: C) Equilibrium Price. 11. Over time economies tend not to change. A) True. B) False. Show Answer Correct Answer: B) False. 12. Refrigerator purchased by a confectionery shop is an example of A) Final good. B) Intermediate good. C) None. D) Capital good. Show Answer Correct Answer: D) Capital good. 13. Over the last year, Eli has been working very hard and his employer has taken notice by giving him a 6% raise in his salary. During this last year, overall prices in the economy have increased by 4%. Given this information, Eli's real wage has: A) Stayed constant. B) Decreased by 4%. C) Increased by 10%. D) Increased by 2%. Show Answer Correct Answer: D) Increased by 2%. 14. The tendency of a family to imitate the consumption pattern of neighbouring families is called ..... A) Keynes effect. B) Rachet effect. C) Demonstration effect. D) Neighbourhood effect. Show Answer Correct Answer: C) Demonstration effect. 15. Macroeconomics is associated with the fluctuation of the general price level in the country. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 16. In one year, spending on consumption, investment, and government purchases was equal to 103 percent of acountry's gross domestic product. This would be possible only if A) The money supply increased. B) Net exports were positive. C) Net exports were negative. D) The government ran a budget surplus. E) The government had a balanced budget. Show Answer Correct Answer: C) Net exports were negative. 17. Which one of the following would be the most appropriate stabilization policy if the economy is operating beyond its long-run potential capacity? A) The Fed sells government bonds to the public in the nation's bond market. B) An increase in government purchases, holding taxes constant. C) A reduction in reserve requirements. D) A reduction in taxes, holding government purchases constant. Show Answer Correct Answer: A) The Fed sells government bonds to the public in the nation's bond market. 18. Fiscal policy:tax cut A) Shifts IS curve to right. B) Shifts IS curve to left. C) Shifts LM curve to right. D) Shifts LM curve to left. Show Answer Correct Answer: A) Shifts IS curve to right. 19. Cost of production is one of the factors affecting ..... A) AD CURVE. B) AS CURVE. Show Answer Correct Answer: B) AS CURVE. 20. A government wants to increase the economy's rate of long-run economic growth by implementing a supply-side policy. Which one of the following is a government policy aimed at stimulating the supply side of the economy? A) A new scheme to help young people buy their own homes. B) Greater provision of care homes for the elderly. C) Measures to promote competition between businesses. D) More generous welfare benefits for unemployed workers. Show Answer Correct Answer: C) Measures to promote competition between businesses. ← 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