This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 59 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 59 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Taxing and spending A) Fiscal. B) Monetary. Show Answer Correct Answer: A) Fiscal. 2. Economics can be defined as ..... A) The science of decision making. B) The study of human behavior. C) The science of buying and selling. D) The study of unlimited resources. Show Answer Correct Answer: A) The science of decision making. 3. Sticky wages A) When wages and prices don't come down quickly enough to eliminate the market surplus. B) When wages don't increase fast enough to reflect increasing demand. C) Wages that are sticky. D) None of above. Show Answer Correct Answer: A) When wages and prices don't come down quickly enough to eliminate the market surplus. 4. Aggregate supply is the total amount: A) Of labour supplied by all households. B) Of products produced by a given industry. C) Produced by the government. D) Of goods and services produced in an economy. Show Answer Correct Answer: D) Of goods and services produced in an economy. 5. Other things being equal, which of the following would tend to shift an economy's PPC to the left? A) The discovery of a low-cost means of generating and storing solar energy. B) The entrance of more women into the labor force. C) A federal law requiring mandatory retirement from the labor force at age 55. D) A decrease in the proportion of total current output that is allocated to the production of capital goods. Show Answer Correct Answer: C) A federal law requiring mandatory retirement from the labor force at age 55. 6. In the short run, a decrease in the money supply will ..... prices and ..... real GDP A) Increase, increase. B) Decrease, decrease. C) Increase, decrease. D) Decrease, increase. Show Answer Correct Answer: B) Decrease, decrease. 7. According to the Mundell-Fleming model for a small open economy with flexible exchange rates, if the Federal Reserve cannot alter domestic interest rates, changes in the money supply could still influence aggregate income through changes in the: A) Exchange rate. B) Price level. C) Level of government spending. D) Tax rates. Show Answer Correct Answer: A) Exchange rate. 8. GDP can be raised by ..... A) Investment in new machinery. B) Selling used goods and services. C) Increased taxes. D) Wages paid during the year. Show Answer Correct Answer: A) Investment in new machinery. 9. National Income differs from Net National Product at market price by the amount of: A) Current transfers from rest of the world. B) Net Indirect Taxes. C) National debt interest. D) It does not differ. Show Answer Correct Answer: B) Net Indirect Taxes. 10. Which of these would be counted when calculating the GDP of the United States? A) Selling price of goods produced in Michigan. B) Number of people going to school in Idaho. C) Amount of loans made to the United States. D) Quality of services rendered in the United States. Show Answer Correct Answer: A) Selling price of goods produced in Michigan. 11. A sharp decline in the real value of stock prices, which is independent of a change in the price level, would best be an example of A) The interest rate effect. B) The foreign purchases effect. C) A change in household indebtedness. D) A change in real value of consumer wealth. Show Answer Correct Answer: D) A change in real value of consumer wealth. 12. Money supply curve is vertical because A) The interest rate is constant. B) The quantity of money supplied is fixed by the central bank. C) The equilibrium is vertical. D) None of them. Show Answer Correct Answer: B) The quantity of money supplied is fixed by the central bank. 13. Economic growth most unambiguously occurs when there are increase in ..... A) Potential real GDP. B) Aggregate demand. C) Federal budget surplus. D) The population of a countrty. Show Answer Correct Answer: A) Potential real GDP. 14. A contractionary policy means that the Fed is attempting to A) Increase the size of the nation's money supply. B) Decrease the size of the nation's money supply. Show Answer Correct Answer: B) Decrease the size of the nation's money supply. 15. A situation in which a minimum price is set is referred to as A) A shortage. B) A surplus. C) A price ceiling. D) A price floor. Show Answer Correct Answer: D) A price floor. 16. This is a measure of how much overall prices change over time. A) Aggregate. B) Gross Domestic Product (GDP). C) Inflation Rate. D) Unemployment Rate. E) GDP Annual Growth Rate. Show Answer Correct Answer: C) Inflation Rate. 17. Spending by households is counted in the consumption category of gross domestic product, but there is one kind of household spending that is included in the investment category instead. A) The purchase of college tuition. B) The purchase of new cars. C) The purchase of new homes. D) The purchase of government bonds. Show Answer Correct Answer: C) The purchase of new homes. 18. Which of the following is correct according to the circular flow model of an economy? A) Taxes received from the public equal government spending. B) Imports equal exports. C) Total spending equals total income. D) Consumption plus saving equals investment. E) Saving plus investment equals imports plus exports. Show Answer Correct Answer: C) Total spending equals total income. 19. In macroeconomics, equilibrium is defined as that point at which A) Saving equals consumption. B) Planned aggregate expenditure equals aggregate output. C) Planned aggregate expenditure equals consumption. D) Aggregate output equals consumption minus investment. Show Answer Correct Answer: B) Planned aggregate expenditure equals aggregate output. 20. TRUE or FALSE:The European Union's national accounting conventions classify nonprofit hospitals and universities in the households sector. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. ← 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