This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 66 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 66 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If countries that imported from the US went into a recession, U.S. net exports would A) Rise, making aggregate demand shift right. B) Rise, making aggregate demand shift left. C) Fall, making aggregate demand shift right. D) Fall, making aggregate demand shift left. Show Answer Correct Answer: D) Fall, making aggregate demand shift left. 2. How do you find the unemployment rate? A) Dividing the total number of people in the labor force by the number of unemployed people. B) Dividing the number of unemployed people by the total number of people in the labor force. C) Multiplying the number of unemployed people by the total number of people in the labor force. D) Subtracting the number of unemployed people from the total number of people in the labor force. Show Answer Correct Answer: B) Dividing the number of unemployed people by the total number of people in the labor force. 3. The process by which the Federal Reserve controls the supply, availability, and cost of money in order to keep the economy stable is ..... A) Fiscal Policy. B) Monetary Policy. C) The Interest Rate. D) The Discount Rate. Show Answer Correct Answer: B) Monetary Policy. 4. Large or persistent inflation is almost always caused by A) Excessive government spending. B) Excessive growth in the quantity of money. C) Foreign competition. D) Higher than normal levels of productivity. E) Excessive taxation. Show Answer Correct Answer: B) Excessive growth in the quantity of money. 5. This is a tax levied on imports or exports. A) Entitlements. B) Subsidies. C) Tariffs. D) Imports. E) Exports. Show Answer Correct Answer: C) Tariffs. 6. Who benefits the most from unexpected inflation A) Borrowers, if they have a fixed rate loan. B) Lenders/Creditors, if they gave out fixed rate loans. C) Consumers, who are purchasing things later in their life. D) All of the above. Show Answer Correct Answer: A) Borrowers, if they have a fixed rate loan. 7. The concept of automatic stabilisers suggest that A) Monetary policy will automatically balance the budget. B) The use of discretionary fiscal policy will stabilise the economy. C) The budget must always be in surplus to ensure sustainable economic growth. D) It is better for governments to run budget deficits in a recession, as the extra government spending will reduce the decline in private consumption. Show Answer Correct Answer: D) It is better for governments to run budget deficits in a recession, as the extra government spending will reduce the decline in private consumption. 8. Real exchange rate is the rate at which a person can trade the goods and services of one country for the goods and services of another. A) True. B) False. Show Answer Correct Answer: A) True. 9. Savers, creditors (lenders), and people on a fixed income are ..... likely to be hurt by inflation. A) Least. B) Most. Show Answer Correct Answer: B) Most. 10. Cost push inflation is primarily caused by: A) A surge in consumer demand. B) Decreased taxation. C) An increase in production costs. D) Increased government spending. Show Answer Correct Answer: C) An increase in production costs. 11. Name a group that was not badly effected by hyperinflation. A) Pensioners. B) Landowners. C) The poor. D) Factory workers. Show Answer Correct Answer: B) Landowners. 12. Which of these can shift the demand curve? A) Change in Income. B) Change in Input. C) Change number of competitors. D) Change in Technology. Show Answer Correct Answer: A) Change in Income. 13. Which of the following is not counted in a country's GDP? A) Goods exported to other countries. B) Changes in inventories. C) Domestically produced capital goods. D) Financial assets, such as stocks and bonds. E) Newly produced services. Show Answer Correct Answer: D) Financial assets, such as stocks and bonds. 14. Cash that can be loaned out by the banks. A) Excess reserves. B) Fiscal policy. C) Required reserves. D) Crowding out effect. Show Answer Correct Answer: A) Excess reserves. 15. Aggregate Demand curve shows ..... A) The total goods where the individual is willing and able to buy at a certain price, ceteris paribus. B) The real output where an individual is willing and able to buy, ceteris paribus. C) The total goods, where the individual are able for sale, ceteris paribus. D) The real output of where the individual is willing and able to buy at different price level, ceteris paribus. Show Answer Correct Answer: D) The real output of where the individual is willing and able to buy at different price level, ceteris paribus. 16. Which of the following formulas is used to compute for GDP using the income method? A) C+I+G+X-M. B) PI+CI+GI+IBT-S+D. C) AG+IN+SE. D) PI+CI+GI+NFIA-S+D. Show Answer Correct Answer: B) PI+CI+GI+IBT-S+D. 17. Measures the cost of the market basket of a typical urban American family A) Aggregate Supply. B) GDP. C) CPI. D) Budget. Show Answer Correct Answer: C) CPI. 18. A lifeguard is hired on at Pensacola Beach for the summer, and is told the job will end in August. This is an example of ..... unemployment. A) Frictional. B) Seasonal. C) Structural. D) Cyclical. Show Answer Correct Answer: B) Seasonal. 19. The "basket" on which the CPI is based is composed of ..... A) Raw materials purchased by firms. B) Total current production of final goods and services. C) Products purchased by the typical consumer. D) None of the above. Show Answer Correct Answer: C) Products purchased by the typical consumer. 20. Stagflation is caused by A) A leftward shift in the aggregate-demand curve. B) A rightward shift in the aggregate-demand curve. C) A leftward shift in the aggregate-supply curve. D) A rightward shift in the aggregate-supply curve. Show Answer Correct Answer: C) A leftward shift in the aggregate-supply curve. ← 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