This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A country's iron industry closed down, as buyers switch their purchases of iron to another country, what type of unemployment will occur as a result of this? A) Cyclical. B) Seasonal. C) Frictional. D) Structural. Show Answer Correct Answer: D) Structural. 2. What is liquidity? A) Water. B) Availability of liquid assets in a market. C) The ocean. D) Karl Marx. Show Answer Correct Answer: B) Availability of liquid assets in a market. 3. Calculate the gross domestic private investment:Durable goods 30Non durable goods 15Residential 20Services 17Non residential 54Depreciation 34Change in inventories 12 A) 74. B) 86. C) 136. D) 119. Show Answer Correct Answer: B) 86. 4. If the economy was going into a recession, what would the Federal government do with taxes? A) Increase them. B) Do nothing. C) Decrease them. D) None of above. Show Answer Correct Answer: C) Decrease them. 5. In order to control inflation, the FED could ..... the money supply. A) Increase. B) Decrease. Show Answer Correct Answer: B) Decrease. 6. Which of the following is an expansionary Fiscal Policy measure? A) Decrease in government spending. B) Increase in taxes. C) Decrease in transfer payments. D) Increase in government spending. Show Answer Correct Answer: D) Increase in government spending. 7. Which monetary policy tool would speed up the economy? A) Increasing reserve requirement. B) Decreasing income taxes. C) Increasing government spending. D) Decreasing interest paid on reserves. Show Answer Correct Answer: D) Decreasing interest paid on reserves. 8. The actions the Federal Reserve System takes to influence the level of real GDP and the rate of inflation in the economy. A) Fiscal Policy. B) Monetary Policy. C) Congressional Policy. D) Executive Policy. Show Answer Correct Answer: B) Monetary Policy. 9. Deltonia produces both consumer and capital goods. If it reduces the percentage of its current output devoted to capital goods, then: A) Its rate of economic growth will tend to decline. B) Its PPC will shift to the left. C) It must also reduce the percentage of its current output devoted to consumer goods. D) Its rate of economic growth will tend to increase. Show Answer Correct Answer: A) Its rate of economic growth will tend to decline. 10. Which is better for a company? A) Competitive Advantage. B) Absolute Advantage. Show Answer Correct Answer: B) Absolute Advantage. 11. Gross domestic product (GDP) is officially measured by adding together: A) The quantity of each good and service produced by Australian residents. B) Gross national product and depreciation of resources. C) Incomes received by all of a nation's households. D) The market value of all final goods and services produced within the borders of a nation. Show Answer Correct Answer: D) The market value of all final goods and services produced within the borders of a nation. 12. Trading something for something else-no currency involved A) Demand. B) Barter. C) Goods. D) Market. Show Answer Correct Answer: B) Barter. 13. All of the following are positive effects that Globalization has on a country except A) Local manufacturers. B) Improving standards of health. C) Improving standards of education. D) Finding more markets for goods. Show Answer Correct Answer: A) Local manufacturers. 14. The IS-LM model is designed to explain the economy in the short run when the price level? A) Still. B) Naik. C) Go down. D) Adjusted to its natural level. Show Answer Correct Answer: A) Still. 15. Which of these tools is an example of monetary policy? A) Borrowing through deficit spending. B) Changing reserve requirements. C) Increasing government spending. D) Reducing income taxes. Show Answer Correct Answer: B) Changing reserve requirements. 16. An increase in the price of peanut butter will cause the demand curve for jelly to shift in which of the following directions? A) To the right, if jelly is purchased by people with lower incomes and peanut butter is a luxury good for them. B) To the right, if peanut butter and jelly are complementary goods. C) To the left, if peanut butter and jelly are complementary goods. D) To the left, if peanut butter and jelly are substitute goods. Show Answer Correct Answer: C) To the left, if peanut butter and jelly are complementary goods. 17. Tanks and roads belong in which part of the GDP formula? GDP = C+I+G+(X-M) A) Consumption Expenditures. B) Investment Expenditures. C) Government Expenditures. D) Net Imports. Show Answer Correct Answer: C) Government Expenditures. 18. The economy of Mithrim is experiencing a severe recession. As a result, the government is conducting expansionary fiscal policy. The central bank of Mithrim is considering expansionary monetary policy to aid in the recovery efforts.Which of the following is an example of a monetary policy action that would work with the expansionary fiscal policy to close the output gap? A) Increasing government spending. B) Increasing the discount rate. C) Increase taxes. D) Selling bonds. E) Open market purchases. Show Answer Correct Answer: E) Open market purchases. 19. Which of the following actions by the Fed would reduce the money supply? A) An open-market purchase of government bonds. B) A reduction in banks' reserve requirements. C) An increase in the interest rate paid on reserves. D) A decrease in the discount rate on Fed lending. Show Answer Correct Answer: C) An increase in the interest rate paid on reserves. 20. In inflation is a rise in prices A) True. B) False. Show Answer Correct Answer: A) True. ← PreviousNext →Related QuizzesEconomics QuizzesMacroeconomics Quiz 1Macroeconomics Quiz 2Macroeconomics Quiz 3Macroeconomics Quiz 5Macroeconomics Quiz 6Macroeconomics Quiz 7Macroeconomics Quiz 8Macroeconomics Quiz 9Macroeconomics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books