This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 266 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 266 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A situation in which the quantity supplied is greater than the quantity demanded is A) A shortage. B) A surplus. C) A price floor. D) A price ceiling. Show Answer Correct Answer: B) A surplus. 2. Which of the following will remain unchanged when the price level decreases? A) Inflationary expectations. B) Aggregate quantity demanded. C) Long-run aggregate supply. D) Nominal wages. E) Nominal output. Show Answer Correct Answer: C) Long-run aggregate supply. 3. ..... is an important instrument of short term borrowing by the government. A) National saving certificate. B) Bonds. C) Treasury bills. D) All of the above. Show Answer Correct Answer: C) Treasury bills. 4. In the book Capitalism, Socialism, and Democracy, ..... described capitalism as a " perennial gale of creative destruction " A) Milton Friedman. B) John Maynard Keynes. C) Friedrich Hayek. D) Joseph Schumpeter. Show Answer Correct Answer: D) Joseph Schumpeter. 5. Statement which describes how the world should be A) Marginal analysis. B) Opportunity cost. C) Positive statement. D) Normative statement. Show Answer Correct Answer: D) Normative statement. 6. It is the study of the nations economy as a whole. A) Microeconomics. B) National economy. C) National output. D) Macroeconomics. Show Answer Correct Answer: D) Macroeconomics. 7. The inventory-sales ratio is most likely to be rising: A) As a contraction unfolds. B) Partially into a recovery. C) Near the top of an economic cycle. D) None of above. Show Answer Correct Answer: C) Near the top of an economic cycle. 8. The book "General Theory of Employment, Interest and Money" was published in A) 1836. B) 1863. C) 1936. D) 1963. Show Answer Correct Answer: C) 1936. 9. Money allows for the ..... and ..... pricing of goods and services A) Ease and Useage. B) Precise and Flexible. C) Barter and Trading. D) Confusion and Insults. Show Answer Correct Answer: B) Precise and Flexible. 10. Inflation is characterized by: A) Falling prices for goods and services. B) Stable prices over time. C) Prices increasing for things people buy. D) No change in prices. Show Answer Correct Answer: C) Prices increasing for things people buy. 11. The interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window A) GDP. B) Discount Rate. C) CPI. D) Peak. Show Answer Correct Answer: B) Discount Rate. 12. Higher Non-Performing Assets in a branch can possibly be an indicator of: A) Lower amounts of loan disbursals in past. B) Omitted credit risk. C) Increase in future loan disbursals. D) Efficient management practices. Show Answer Correct Answer: B) Omitted credit risk. 13. Suppose an economy is currently at the full employment level of output. Assume the government then undertakes expansionary fiscal policy. Based on the AD/AS model, what would we expect to be the most likely outcome of this policy in the short run? A) An increase in output but little change in inflation. B) A decrease in inflation but little change in output. C) An increase in inflation but little change in output. D) A decrease in output but little change in inflation. E) A large increase in output and a large increase in inflation. Show Answer Correct Answer: C) An increase in inflation but little change in output. 14. If the government is concerned about unemployment, which tool would they use? A) Increase spending. B) Increase taxes. C) Increase reserve requirement. D) Increase discount rate. Show Answer Correct Answer: A) Increase spending. 15. Which of the following is not a component of aggregate demand in a two-sector economy? A) Consumption. B) Government expenditure. C) Investment. D) None of above. Show Answer Correct Answer: B) Government expenditure. 16. If Maria Escalera's disposable income increases from $ 600 to $ 650 and her level of personalconsumption expenditures increase from $ 480 to $ 520, you may conclude that her marginal propensity to A) Consume is 0.8. B) Consume is 0.4. C) Save is 0.8. D) Save is 0.4. Show Answer Correct Answer: A) Consume is 0.8. 17. Who is most likely to be hurt by inflation? A) Someone who borrowed money. B) A retiree on a fixed income. C) A business owner. D) The U.S. government. Show Answer Correct Answer: B) A retiree on a fixed income. 18. When a government it spending more money than it is making, it is operating in a ..... A) Deficit. B) Surplus. C) IOU. D) Interest. Show Answer Correct Answer: A) Deficit. 19. Which type of economic system is it when the market decides what needs to be produced, private businesses decide how to produce, and consumers decide what they are willing to pay for goods? A) Traditional. B) Command. C) Market. D) Mixed. Show Answer Correct Answer: C) Market. 20. Technology is one of the factors affecting ..... A) AD CURVE. B) AS CURVE. Show Answer Correct Answer: B) AS CURVE. ← 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