This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 38 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 38 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which one of the following is NOT a supply side policy? A) The government increasing competition in all industries. B) The government reducing import controls. C) The government investing in training and education. D) The government privatising national industries. Show Answer Correct Answer: B) The government reducing import controls. 2. Expenditures on ..... comprise the largest component of state and local government budgets. A) Education. B) Public safety. C) Public infrastructure (such as roads and water works). D) Public welfare (such as food stamps and income supplemental programs). Show Answer Correct Answer: A) Education. 3. Which of the following issues would a macroeconomist concentrate on A) The price of durians Musang King. B) The achievement of full employment. C) The profits of Proton national cars. D) The market for housing in country. Show Answer Correct Answer: B) The achievement of full employment. 4. In order to get GNP from GDP we have to add A) NFIA. B) DEP. C) NIT. D) EXPORT. Show Answer Correct Answer: A) NFIA. 5. Which component of the Federal Reserve System holds the most influence in regards to the direction of monetary policy? A) The Board of Governors. B) Congress and the President. C) The 12 District banks. D) The Federal Open Market Committee. Show Answer Correct Answer: D) The Federal Open Market Committee. 6. According to the CIA World Factbook, which of the following nations have a GDP exceeding the United States? A) Spain. B) Turkey. C) Italy. D) Mexico. E) None of the above. Show Answer Correct Answer: E) None of the above. 7. What happen to the trade balance if import is more than export? A) Surplus. B) Deficit. C) Balance. D) None of above. Show Answer Correct Answer: B) Deficit. 8. Saying that net exports are positive is the same as saying that A) There is a current account surplus. B) There is a capital account surplus. C) There is a current account deficit. D) The same weight of goods has been imported as were exported. Show Answer Correct Answer: A) There is a current account surplus. 9. The value of US 1$ has gone down from rs 67 to rs 65. it means that A) Indian rupee has appreciated. B) US dollar has depreciated. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: C) Both (a) and (b). 10. The Phillips curve shows A) It is impossible to reduce unemployment in the long run. B) There is a trade-off between inflation and unemployment in the short run. C) Unemployment may be negative but inflation is always positive. D) Higher levels of unemployment result in higher levels of inflation. Show Answer Correct Answer: B) There is a trade-off between inflation and unemployment in the short run. 11. TRUE or FALSE:The indicator set of the Europe 2020 strategy is an example for a composite indicator of well-being. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 12. The occupational mobility of labour increases. Which types of unemployment is this likely to reduce? A) Cyclical and frictional. B) Frictional and structural. C) Structual and cyclical. D) Cyclical, frictional, and instructional. Show Answer Correct Answer: B) Frictional and structural. 13. A business cycle contraction when there is a general slowdown in economic activity A) Peak. B) Expansion. C) Inflation. D) Recession. Show Answer Correct Answer: D) Recession. 14. Fiscal Policy is controlled by whom? A) The Federal Reserve. B) Congress & the President. C) The Office of Management & Budget. D) Central Bank of America. Show Answer Correct Answer: B) Congress & the President. 15. What does the "I" stand for in the expenditures model equation? A) Intermediate goods. B) Inclusive demand. C) Investments. D) Initial Supply. Show Answer Correct Answer: C) Investments. 16. Which of the following government measures is least likely to be employed to slow demand-pull inflation? A) Increasing investment incentives. B) Encouraging new technology. C) Raising interest rates. D) Reducing monopolistic practices. Show Answer Correct Answer: A) Increasing investment incentives. 17. The decisions the Fed makes to manage the money supply and influence the economy. A) Monetary policy. B) Discount rate. C) Reserve requirement. D) Check clearing. Show Answer Correct Answer: A) Monetary policy. 18. Which policy involves the government selling off nationalised firms? A) Reduce trade union power. B) Privatisation. C) Deregulation. D) Encouraging competition. Show Answer Correct Answer: B) Privatisation. 19. Assume that the velocity of money in Theopolis is 3 and the aggregate supply curve is vertical at $ 100 million.What impact will an increase in the money supply have on real output? A) Real output will increase by 30%. B) Real output will increase by 10%. C) Real output will increase by 3%. D) Real output will increase by 3/10%. E) There will be no impact on real output. Show Answer Correct Answer: E) There will be no impact on real output. 20. Which of the following is not the part of profit? A) Dividend. B) Undistributed profit. C) Corporate tax. D) Royalty. Show Answer Correct Answer: D) Royalty. ← 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