This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 267 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 267 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Business cycles are more stable if A) The government consistently passes stimulus money. B) The government raises taxes. C) Both banks and government set policies to meet the three economic goals. D) None of above. Show Answer Correct Answer: C) Both banks and government set policies to meet the three economic goals. 2. Unemployed plus employed A) Unemployed. B) Unemployment Rate. C) Labor Force. D) Total Population. Show Answer Correct Answer: C) Labor Force. 3. The CPI measures a ..... of goods and services. A) Grocery cart. B) Shortage or surplus. C) Market basket. D) Picnic basket. Show Answer Correct Answer: C) Market basket. 4. Emoluments, pensions and gratuities, debts, service charges and other types of expenditure are refer to ..... A) Operating expenditure. B) Development expenditure. C) Government expenditure. D) Social expenditure. Show Answer Correct Answer: A) Operating expenditure. 5. Unemployment that results from recessions would be considered ..... A) Frictional. B) Structural. C) Cyclical. D) Marginal. Show Answer Correct Answer: C) Cyclical. 6. Assume the economy is in long run equilibrium and the government increases spending on healthcare A) AD will shift right and an inflationary gap will result. B) AD will shift left and a recessionary gap will result. C) AS will shift right and an inflationary gap will result. D) AS will shift left and a recessionary gap will result. E) No change will result. Show Answer Correct Answer: A) AD will shift right and an inflationary gap will result. 7. What type of unemployment explains Santa Actors in January A) Unjust. B) Frictional. C) Seasonal. D) Cyclical. Show Answer Correct Answer: C) Seasonal. 8. GDP is a perfect statistic. A) True. B) False. Show Answer Correct Answer: B) False. 9. Acting as a banker to the commercial bank and establishing an effective monetary policy are the basic functions of A) Central bank. B) Commercial banks. C) Merchant banks. D) Clearing house. Show Answer Correct Answer: A) Central bank. 10. An increase in the number of discouraged workers causes the unemployment rate to A) Decrease along with the labor-force participation rate. B) Increase while the labor-force participation rate decreases. C) Stay the same because the workers are still unemployed. D) Decrease while the labor-force participation rate stays the same. E) Increase along with the labor-force participation rate. Show Answer Correct Answer: A) Decrease along with the labor-force participation rate. 11. Which of these is found MORE often in command economies than in market economies? A) Consumer sovereignty. B) Competition. C) Regulations. D) Private ownership. Show Answer Correct Answer: C) Regulations. 12. When the Fed increases the supply of money, the money supply curve shifts to the A) Left. B) Right. C) Up. D) Down. Show Answer Correct Answer: B) Right. 13. Supply curve of Foreign exchange: A) Horizontal straight line parallel to X-axis. B) Vertical straight line parallel to Y-axis. C) Slopes Downwards. D) Slopes Upwards. Show Answer Correct Answer: D) Slopes Upwards. 14. Consumption Function is the Functional Relation between A) Income and saving. B) Price level and consumption. C) Income and consumption. D) ALL OF THE ABOVE. Show Answer Correct Answer: C) Income and consumption. 15. An increase in..... interest rate will result in..... investment A) Nominal, increase. B) Nominal, decrease. C) Real, increase. D) Real, decrease. Show Answer Correct Answer: D) Real, decrease. 16. Isabella takes $ 100 of currency from her wallet and deposits it into her checking account. If the bank adds the entire $ 100 to reserves, the money supply ....., but if the bank lends out some of the $ 100, the money supply ..... A) Increase; increases by less. B) Decreases; decreases by less. C) Unchanged; increases. D) Increases; increase by more. Show Answer Correct Answer: C) Unchanged; increases. 17. If a nation limits their imports of clothing (ex:quota, standard, tariff) who will benefit? A) Domestic Consumers of clothing. B) Domestic producers of clothing. C) Foreign Producers of clothing. D) Department stores who sell clothing. Show Answer Correct Answer: B) Domestic producers of clothing. 18. In the AS/AD model, which curve is vertical? A) AD. B) SRAS. C) LRAS. D) RGDP. Show Answer Correct Answer: C) LRAS. 19. Factors that influence net capital outflow are..... A) The real interest rate paid on foreign assets. B) The cost of transporting goods from one country to another. C) Government policy towards international trade. D) Consumer income at home and abroad. Show Answer Correct Answer: A) The real interest rate paid on foreign assets. 20. Following a sharp increase in the price of energy, the overall price level is mostlikely to rise in the short run A) And remain elevated indefinitely unless the central bank tightens. B) But remain unchanged in the long run unless the money supply is increased. C) And continue to rise until all prices have increased by the same proportion. D) None of above. Show Answer Correct Answer: B) But remain unchanged in the long run unless the money supply is increased. ← 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