This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 58 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 58 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is an example of money functioning as a "medium of exchange" ? A) Using it to facilitate transactions. B) Using money for purchases in the future. C) Using it to compare the value of goods and services in relation to another. D) None of above. Show Answer Correct Answer: A) Using it to facilitate transactions. 2. Goods used to create finished products A) Final Goods. B) Non-Durable Goods. C) Intermediate Goods. D) Durable Goods. Show Answer Correct Answer: C) Intermediate Goods. 3. What does CPI stand for? A) Consumer Price Inflation. B) Consumer Price Index. C) Consumer Price Increase. D) None of above. Show Answer Correct Answer: B) Consumer Price Index. 4. Federal Reserve requires most financial institutions to keep a percentage of customer deposits in vault cash or as a deposit in their account with the Federal Reserve. A) Reserve requirement. B) Capital gains. C) Certificate of deposits. D) Interest rates. Show Answer Correct Answer: A) Reserve requirement. 5. Which of the following will occur if the federal government reduces defense spending? A) Aggregate demand will increase. B) Aggregate demand will decrease. C) Aggregate supply will increase. D) Aggregate supply will decrease. E) There will be no change in aggregate demand or supply. Show Answer Correct Answer: B) Aggregate demand will decrease. 6. The following are not included in the Gross Domestic Product component of the Expenditure approach A) Gross Fixed Capital Formation. B) Foreign exchange reserves. C) Import of Goods and Services. D) Government Consumption Expenditures. Show Answer Correct Answer: B) Foreign exchange reserves. 7. Which type of variable is measured at a point of time? A) Stock variable. B) Flow variable. Show Answer Correct Answer: A) Stock variable. 8. Increasing taxes is a type of: A) Tight fiscal policy. B) Tight monetary policy. C) Loose monetary policy. D) Loose fiscal policy. Show Answer Correct Answer: A) Tight fiscal policy. 9. Expansionary fiscal policy at home ie. an increase in G spending or decrease in T A) Reduces saving, shift S to left. B) Reduces saving shift S to right. C) Increases saving, shift S to left. D) Increases saving shift S to right. Show Answer Correct Answer: A) Reduces saving, shift S to left. 10. When prices rise A) Buyers pay less amount of money. B) Buyers pay less amount of money. C) Sellers get less amount of money. D) Buyers pay more amount of money. Show Answer Correct Answer: D) Buyers pay more amount of money. 11. In the long run, a decrease in the money supply ..... prices and ..... real GDP A) Won't change, increase. B) Won't change, decrease. C) Increases, won't change. D) Decreases, won't change. Show Answer Correct Answer: D) Decreases, won't change. 12. What would be the expected effect of expansionary fiscal policy using the Classical AS curve? A) A decrease in inflation and an increase in output. B) An increase in inflation and no change in output. C) An increase in inflation and a decrease in output. D) No change in inflation and an increase in output. E) No change in either inflation or output. Show Answer Correct Answer: B) An increase in inflation and no change in output. 13. Which of the following best describes an increase in structural unemployment? A) More job-search websites are created to better match job seekers. B) People must undergo a long retraining process in new skills after losing their jobs. C) An economy enters a recession. D) People lose jobs in agriculture when the growing season ends. Show Answer Correct Answer: B) People must undergo a long retraining process in new skills after losing their jobs. 14. Trade is made easier because of this function of money that eliminates the need to barter (trade goods for goods). A) Store of Value. B) Medium of Exchange. C) Unit of Account. D) Divisibility. Show Answer Correct Answer: B) Medium of Exchange. 15. At the existing price, quantity supplied exceeds the quantity demanded; also called excess supply A) Shortage. B) Surplus. C) Excess supply. D) Excess demand. Show Answer Correct Answer: B) Surplus. 16. If the economy was in a recession and Congress and the Federal Reserve Bank BOTH wanted to correct it quickly, which policy combination would be best? A) Cut taxes, buy treasury bonds. B) Increase government spending, sell treasury bonds. C) Raise taxes, buy treasury bonds. D) Cut taxes, sell treasury bonds. Show Answer Correct Answer: A) Cut taxes, buy treasury bonds. 17. The higher the disposable income the ..... A) Lower saving. B) Lower consumption. C) Autonomous consumption. D) Higher saving. Show Answer Correct Answer: D) Higher saving. 18. The natural rate of unemployment in Elizaland is 5%. The citizens of Elizaland expected inflation to be 2% and unemployment to be 5% during 2018. However, inflation turned out to be 6% and unemployment 1.5%.What happens in the long run as people begin to expect a permanantly higher rate of inflation? A) The short-run Phillips curve (SPRC) shifts to the left. B) The long-run Phillips curve (LRPC) shifts to the left. C) The long-run Phillips curve (LRPC) shifts to the right. D) A movement to the right along the short-run Phillips curve (SRPC). E) The short-run Phillips curve (SRPC) shifts to the right. Show Answer Correct Answer: E) The short-run Phillips curve (SRPC) shifts to the right. 19. What is the unemployment rate? A) The total population of a country divided by people who are employed (times 100). B) The number of people over 16 actively looking for work divided by the number of people in the labor force (times 100). C) The number of jobless people actively looking for work divided by the number of people in the labor force (times 100). D) The total population of a country divided by people who are unemployed (times 100). Show Answer Correct Answer: C) The number of jobless people actively looking for work divided by the number of people in the labor force (times 100). 20. Which one of the following would, in principle, be counted in an estimate of the gross domestic product of the euro area? A) The value of the steel Fiat buys to make cars. B) The value of a new CD you buy from a store. C) The value of a CD you give a friend in exchange for having helped you study. D) The value of a book you buy from a used bookstore. E) The value of work you do as an intern in the United States. Show Answer Correct Answer: B) The value of a new CD you buy from a store. ← 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