This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 28 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which part of the business cycle is characterized by job growth and inflation? A) Peak. B) Contraction. C) Trough. D) Expansion. Show Answer Correct Answer: D) Expansion. 2. The level of disposable income determines the level of ..... A) Consumption expenditure. B) Private expenditure. C) Government expenditure. D) Net export. Show Answer Correct Answer: A) Consumption expenditure. 3. Why are macroeconomic issues very important to discuss when there is a public conference in a country? A) Because macroeconomics discusses the stability of the financial system as a whole. B) Because macroeconomics affects everyone. C) Because macroeconomics is very abstract and difficult to understand, only experts can understand it. D) Because they are unrelated to government policy. Show Answer Correct Answer: B) Because macroeconomics affects everyone. 4. What does it mean? Ed > 1 A) Perfectly inelastic demand. B) Inelastic demand. C) Unitarily elastic demand. D) Elastic demand. E) Perfectly elastic demand. Show Answer Correct Answer: D) Elastic demand. 5. A period of temporary economic decline during which trade and industrial activity are reduced. A) World Bank. B) Recession. C) Embargo. D) Pandemic. Show Answer Correct Answer: B) Recession. 6. There is a positive response between price level and ..... A) Aggregate demand. B) Aggregate supply. C) Real GDP demanded. D) Real GDP purchased. Show Answer Correct Answer: B) Aggregate supply. 7. How would the government use fiscal policy to reduce inflation? A) By increasing corporate tax rates. B) By increasing reserve requirements. C) By increasing government spending. D) By increasing interest paid on reserves. Show Answer Correct Answer: A) By increasing corporate tax rates. 8. A person's risk that they take on by creating their own business would be an example of which of the following Factors of Production? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: D) Entrepreneurship. 9. Calculate the unemployment rate with the following data:Total population 120 million people, the population that is not of working age is 20 million, those who are not willing or available of the population of working age are 20 million and there are 69 million employees currently A) The unemployment rate is:9.16%. B) The unemployment rate is:11%. C) The unemployment rate is:59%. D) The unemployment rate is:13.75%. Show Answer Correct Answer: D) The unemployment rate is:13.75%. 10. A budget surplus means that A) The Government has spent more money than it took in. B) The Government has taken in more money than it has spent. C) The Government has spent more money than the Fed. D) The Fed has spent more money than the Government. Show Answer Correct Answer: B) The Government has taken in more money than it has spent. 11. When two or more businesses fight for consumers. This happens through developing the best product or selling it for the lowest price. A) Capitalism. B) Demand. C) Competition. D) Eminent domain. Show Answer Correct Answer: C) Competition. 12. Equilibrium in macroeconomics refers to ..... A) Total value of output being produced more than total value of expenditure. B) Aggregate supply being greater than aggregate demand. C) Aggregate demand being greater than aggregate supply. D) Aggregate demand being equal to aggregate supply. Show Answer Correct Answer: D) Aggregate demand being equal to aggregate supply. 13. The central problem of economics and business is. of resources ..... A) Plenty. B) Scarcity. C) Variety. D) None of above. Show Answer Correct Answer: B) Scarcity. 14. Intermediate products and final products differ in: A) Uses. B) Is the material and is not the material. C) Consumption time. D) These sentences are wrong. Show Answer Correct Answer: A) Uses. 15. Your company has been bought out by a large corporation and they lay you off. This is an example of ..... A) Cyclical unemployment. B) Frictional unemployment. C) Structural unemployment. D) Seasonal unemployment. Show Answer Correct Answer: C) Structural unemployment. 16. Which tool of monetary policy matches this definition:The Fed votes to raise, lower, or keep the target for the Federal Funds Rate (FFR). The FFR is an indirect way for the Fed to affect unemployment, GDP and consumer price levels through the selling of bonds. (also the subject of our FOMC simulation) A) Reserve Requirement. B) Interest on Required and Excess Reserves. C) Discount Rate. D) Open Market Operations. Show Answer Correct Answer: D) Open Market Operations. 17. When replacing a certain item with with a less costly item is an example of A) The substitution effect. B) The income effect. C) Demand elasticity. D) Complements. Show Answer Correct Answer: A) The substitution effect. 18. In which of the economy leakages rise in circular flow of income? A) Two Sector. B) Three Sector. C) Open. D) Closed. Show Answer Correct Answer: B) Three Sector. 19. Take the number of unemployed people in the country divided by the number of people in the labor force and multiplying the quotient by 100. A) Unemployment rate. B) Unemployment growth. C) Employment rate. D) None of above. Show Answer Correct Answer: A) Unemployment rate. 20. According to the quantity theory of money, which of the following best describes what determines the rate of inflation in the long run? A) The rate of change of the velocity of money. B) The rate of growth of the money supply. C) The growth of the price level. D) The growth of real GDP per capita. E) The rate of inflation is constant in the long-run. Show Answer Correct Answer: B) The rate of growth of the money supply. ← 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