This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 30 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 30 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What type of unemployment is most damaging to an economy? A) Seasonal. B) Fricitional. C) Structural. D) Cyclical. Show Answer Correct Answer: D) Cyclical. 2. How many consecutive quarters of negative GDP is considered to be a recession? A) 2. B) 3. C) 4. D) 6. Show Answer Correct Answer: A) 2. 3. If the price index in year A is 130, this means that: A) Prices in year A are on average 130 percent higher than in the base year. B) Prices in year A are on average 13 times that in the base year. C) Prices in year A are on average 30 percent higher than in the base year. D) Nominal GDP is 130 percent higher than real GDP in year A. Show Answer Correct Answer: C) Prices in year A are on average 30 percent higher than in the base year. 4. A system to make financial loss more affordable by transferring it from individuals to large groups is called: A) Investing. B) Insurance. C) Trading. D) Saving. Show Answer Correct Answer: B) Insurance. 5. The idea that relatively poor nations should have higher rates of growth of real GDP per capita than relatively rich nations is known as the ..... A) East Asian miracle. B) Industrial Revolution. C) Sustainable development hypothesis. D) Malthusian hypothesis. E) Convergence hypothesis. Show Answer Correct Answer: E) Convergence hypothesis. 6. What is a contraction in the business cycle? A) The accumulation of government deficits over the years. B) The highest point of Real GDP. C) The lowest point of Real GDP. D) The period of falling Real GDP. Show Answer Correct Answer: D) The period of falling Real GDP. 7. A higher unemployment rate could be the result of ..... A) Increased consumer spending. B) Lower consumer spending. C) Low inflation. D) Oversupply of goods. Show Answer Correct Answer: B) Lower consumer spending. 8. A recession is best described as a situation with: A) Falling economic activity and rising cyclical unemployment. B) Weak employment growth but rises in job vacancies. C) Increases in overtime and participation rates. D) Rising cost push inflation and a falling GDP. Show Answer Correct Answer: A) Falling economic activity and rising cyclical unemployment. 9. Disposable income come after taxes are taken out. A) False. B) True. Show Answer Correct Answer: B) True. 10. Which of the following is true according to the circular flow model? A) Firms are suppliers in both the product and factor markets. B) Firms are demanders in the product markets and suppliers in the factor markets. C) Households are demanders in both the product and factor markets. D) Households are demanders in the product markets and suppliers in the factor markets. E) The government is a demander in the product market only. Show Answer Correct Answer: D) Households are demanders in the product markets and suppliers in the factor markets. 11. When the government spends more, the initial effect is that A) Aggregate demand shifts right. B) Aggregate demand shifts left. C) Aggregate supply shifts right. D) Aggregate supply shifts left. Show Answer Correct Answer: A) Aggregate demand shifts right. 12. Which of the following is the component of the gross domestic product (GDP) is ..... A) Business expenditures. B) Exports to other countries. C) Government expenditures. D) Consumption expenditures. E) All. Show Answer Correct Answer: E) All. 13. Which of the following is NOT TRUE of GDP? A) It considers the market value of both intermediate and final goods and services. B) It includes the market value of all final goods and services. C) It includes all final goods and services produced in the nation within a set time period. D) Consumer spending is a big factor in the expenditure model of GDP. Show Answer Correct Answer: A) It considers the market value of both intermediate and final goods and services. 14. It ss a statistical measure designed to show changes in a variable or group of related variables (price, quantity, value) with respect to time, geographic location or other characteristics such as income, profession and the like. A) Retail price. B) Wholesale price. C) Index number. D) SRP. Show Answer Correct Answer: C) Index number. 15. Which of the following will lead to long-run economic growth? A) A decrease in nominal wages. B) An increase in the production of consumer goods. C) An increase in literacy. D) An increase in unemployment. Show Answer Correct Answer: C) An increase in literacy. 16. A general rise in the price level of products is known as: A) Hyperinflation. B) Cost-Push phenomenon. C) Inflation. D) Deflation. Show Answer Correct Answer: C) Inflation. 17. An increase in expected inflation is likely to have which of the following effects? A) Shift the long-run Phillips curve to the right. B) Shift the short-run Phillips curve downward. C) Increase the actual inflation rate. D) Decrease the natural employment rate. E) Shift the short-run aggregate supply curve to the right. Show Answer Correct Answer: C) Increase the actual inflation rate. 18. Law of Supply A) The claim that, other things equal, the quantity supplied of a good rises when the price of the good rises. B) A simplified representation that is used to study a real situation is called:. C) Additional. D) "money wage" = money you're paid by an employer for your labor. not adjusted for inflation. Show Answer Correct Answer: A) The claim that, other things equal, the quantity supplied of a good rises when the price of the good rises. 19. During an economic expansion, Gross Domestic Product (GDP): A) Is not calculated. B) Increases. C) Decreases. D) Stays of the same. Show Answer Correct Answer: B) Increases. 20. John was studying the effects of the recent economic downturn. He noticed a type of unemployment that rises during these downturns and falls when the economy improves. What type of unemployment was John studying? A) Seasonal Unemployment. B) Structural Unemployment. C) Frictional Unemployment. D) Cyclical Unemployment. Show Answer Correct Answer: D) Cyclical Unemployment. ← 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