This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 48 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 48 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The highest point in an economic expansion, when GDP no longer increases, is called A) Peak. B) Trough. C) Expansion. D) Contraction. Show Answer Correct Answer: A) Peak. 2. Influencing the economy by changing the reserve requirement is called: A) Fiscal policy. B) Monetary policy. C) Tight Money. D) Easy Money. Show Answer Correct Answer: B) Monetary policy. 3. Which one is NOT true? A) APC + APS = 1. B) C = a + b Yd. C) MPC + MPS = 1. D) C =-a + b Yd. Show Answer Correct Answer: D) C =-a + b Yd. 4. This is the factor by which a change in both spending and taxes changes real GDP. A) Balanced Budget Multiplier. B) Tax Multiplier. Show Answer Correct Answer: A) Balanced Budget Multiplier. 5. Which of these are MOST likely to lead to inflation? A) An increase in cost of production. B) Reduced prices for goods and services. C) An increase in the aggregate supply of goods and services. D) He application of price ceilings. Show Answer Correct Answer: A) An increase in cost of production. 6. Which one influence the interest rate? A) Monetary policy. B) Fiscal policy. C) Trade policy. D) None of above. Show Answer Correct Answer: B) Fiscal policy. 7. What is the difference between an individual and market demand schedule? A) Price. B) Quantity. C) Supply. D) Quantity supplied. Show Answer Correct Answer: B) Quantity. 8. A positive output gap exists when ..... A) The long run potential GDP shifts outward. B) The production possibilities curve moves inward. C) Actual GDP is greater than potential GDP. D) Actual GDP is less than potential GDP. Show Answer Correct Answer: C) Actual GDP is greater than potential GDP. 9. What type of economy is North Korea? A) Command. B) Mixed. C) Market. D) None of above. Show Answer Correct Answer: A) Command. 10. Which monetary policy decision is meant to increase the U.S. money supply? A) Congress passes a bill to reduce personal income taxes. B) The Federal Reserve buys treasury bonds in the open market. C) Congress passes a bill to reduce regulations on business monopolies. D) The Federal Reserve borrows money from a foreign bank to cover a budget deficit. Show Answer Correct Answer: B) The Federal Reserve buys treasury bonds in the open market. 11. Aggregate supply = Consumption A) Supply. B) Investment. C) Saving. D) None of above. Show Answer Correct Answer: C) Saving. 12. The difference between gross national product at market price and gross national product at factor cost is ..... A) Exports and imports. B) Net factor income from abroad. C) Subsidies and indirect taxes. D) Depreciation. Show Answer Correct Answer: C) Subsidies and indirect taxes. 13. What is a main goal of the Federal Reserve in its monetary policy? A) Lowering taxes. B) To curb recessions. C) Increasing government spending. D) Regulation of the stock market. Show Answer Correct Answer: B) To curb recessions. 14. The tools of fiscal policy are government expenditure is and taxation. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 15. Which is the primary reason why people and nations trade? A) They have no other choice. B) They want to be independent. C) They benefit from it. D) All of the above. Show Answer Correct Answer: C) They benefit from it. 16. The intersection of the IS and LM curves shows the ..... and the ..... at which both the goods market and the money market are in equilibrium. A) Interest rate; price level. B) Price level; exchange rate. C) Level of output; exchange rate. D) Level of output; price level. Show Answer Correct Answer: C) Level of output; exchange rate. 17. Economics A) A state in which opposing forces or influences are balanced. B) The study of how society manages its scarce resources. C) A state in which opposing forces or influences are balanced. D) A state in which opposing forces or influences are balanced. Show Answer Correct Answer: A) A state in which opposing forces or influences are balanced. 18. Financial papers with short term maturities (less than a year) and the central Bank siphons and borrows money from the economy when it sells securities. A) Rediscounting. B) Government securities. C) Open market operation. D) Fiscal policy. Show Answer Correct Answer: B) Government securities. 19. A potential trade-off of a new tax on carbon pollution would be: A) An increase in the target cash rate (interest rates) by the Reserve Bank of Australia. B) An increase in resources being allocated to industries that use fossil fuels. C) An increase in the price of electricity produced by coal-fired power stations. D) A decrease in tax collections. Show Answer Correct Answer: C) An increase in the price of electricity produced by coal-fired power stations. 20. A deficit budget occurs when A) The government's total expenditure exceeds revenue. B) The government's total expenditure equals revenue. C) Tax collection is more than government expenditure. D) The public debt deceases. Show Answer Correct Answer: A) The government's total expenditure exceeds revenue. ← 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