This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 31 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 31 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Economy does not have tendency to move toward the golden steady state, need a particular saving rate to support it A) True. B) False. Show Answer Correct Answer: A) True. 2. The long-run aggregate supply curve will shift to the right when A) Foreign exports increase. B) Government spending increases. C) Investment increases. D) Consumption increases. Show Answer Correct Answer: C) Investment increases. 3. The United States national debt is A) The amount of money owed by the federal government to United States citizens. B) The amount of money owed by the federal government to other United States government agencies. C) The amount of currency in the hands of foreigners. D) The amount of money owed by state and local governments to United States citizens. E) The amount of money owed to holders of United States government securities. Show Answer Correct Answer: E) The amount of money owed to holders of United States government securities. 4. In trying to achieve one of its aims a government may make it difficult to achieve another aim. What is an example of this conflict? A) Achieving a more even distribution of income may prevent a rise in the average standard of living. B) Achieving an increase in economic growth may prevent full employment. C) Achieving full employment may prevent stable prices. D) Achieving stable prices may prevent a current account surplus on the balance of payments. Show Answer Correct Answer: C) Achieving full employment may prevent stable prices. 5. What is excluded from the calculation of GDP? A) Final goods and services. B) Intermediate goods and transfer payments. C) Foreign-owned firms. D) None of above. Show Answer Correct Answer: B) Intermediate goods and transfer payments. 6. Which of the following is the best way to compare the standard of living among people in different nations? A) GDP per capita. B) Imports and Exports. C) Consumer Price Index. D) Tax bracket. E) GDP. Show Answer Correct Answer: A) GDP per capita. 7. Macroeconomics is A) The study of price increases. B) The study of price decreases. C) The study of the entire economy. D) None of above. Show Answer Correct Answer: C) The study of the entire economy. 8. Real GDP is A) GDP at the current prices. B) GDP that has been adjusted for inflation. C) A measure of the total production of goods in other countries. D) The same thing as nominal GDP. Show Answer Correct Answer: B) GDP that has been adjusted for inflation. 9. Which of the following is not a scarce economic resource? A) Labor. B) Capital. C) Human wants. D) Land. E) Natural resources. Show Answer Correct Answer: C) Human wants. 10. Which of the following helps economists better understand a nation's standard of living? A) Net Exports. B) GDP per capita. C) Business Investment. D) Nominal GDP. Show Answer Correct Answer: B) GDP per capita. 11. The resources that are wasted when people change their behavior to avoid holding money. A) Money illusion. B) Menu Costs. C) Shoeleather Costs. D) Capital gains taxes. Show Answer Correct Answer: C) Shoeleather Costs. 12. Deflation is A) A decrease in the general price level. B) A decrease in the rate of inflation, but the prices of goods and services are still rising. C) A sustained increase in the general price level. D) A decrease in the rate of economic growth but it remains positive. E) A rate of negative economic growth. Show Answer Correct Answer: A) A decrease in the general price level. 13. The total value of all final goods and services is called the A) Gross domestic product. B) Consumer price index. C) Business cycle. D) Net export. Show Answer Correct Answer: A) Gross domestic product. 14. The recurrent ups and downs in the level of economic activity extending over several years are referred to as: A) Economic phases. B) Business startups. C) Business cycles. D) Noncyclical fluctuations. Show Answer Correct Answer: C) Business cycles. 15. If the government decreases spending or raises taxes, it is implementing a(n) ..... policy A) Contractionary fiscal. B) Expansionary fiscal. C) Contractionary monetary. D) Expansionary monetary. Show Answer Correct Answer: A) Contractionary fiscal. 16. One role monetary policy is to control ..... by changing the ..... A) Inflation ; price level. B) Unemployment; level of taxation. C) The price level; government spending. D) Inflation; quantity of money in circulation. Show Answer Correct Answer: D) Inflation; quantity of money in circulation. 17. Which phase of the business cycle would the Federal Reserve most likely use a "tight money" policy to deal with the issue of inflation? A) Peak phrase. B) Expansion phrase. Show Answer Correct Answer: A) Peak phrase. 18. The ..... is the small bussiness EX.house hold firm A) Microeconomics. B) Macroeconomics. Show Answer Correct Answer: A) Microeconomics. 19. What is percent change in prices over a specific time period? A) Price Indices. B) APR. C) GDP. D) Inflation. Show Answer Correct Answer: D) Inflation. 20. If the demand for Wendy's increases when the price of Starbucks decreases, then what type of goods are Wendy's and Starbucks? A) Normal. B) Inferior. C) Substitutes. D) Complements. Show Answer Correct Answer: D) Complements. ← 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