This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 68 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 68 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the difference between nominal GDP and real GDP? A) Nominal GDP is adjusted for inflation, while real GDP is not. B) Real GDP is adjusted for inflation, while nominal GDP is not. C) Nominal GDP includes intermediate goods, while real GDP does not. D) Real GDP includes intermediate goods, while nominal GDP does not. Show Answer Correct Answer: B) Real GDP is adjusted for inflation, while nominal GDP is not. 2. I wrote a book about capitalism titled "the Wealth of Nations." A) Milton Friedman. B) Adam Smith. C) David Giaramita. D) Smith Adams. Show Answer Correct Answer: B) Adam Smith. 3. Expansionary monetary policy (increase in M) under fixed exchange rates A) Shift LM* right and reduce eto prevent fall in e, Fed must buy domestic currency which reduces M and shifts LM* back left. B) Shift LM* left and reduce eto prevent fall in e, Fed must buy domestic currency which reduces M and shifts LM* back right. C) Shift LM* right and increase eto prevent rise in e, Fed must sell domestic currency which increases M and shifts LM* back right. D) Shift LM* left and increase eto prevent fall in e, Fed must buy domestic currency which reduces M and shifts LM* back left. Show Answer Correct Answer: A) Shift LM* right and reduce eto prevent fall in e, Fed must buy domestic currency which reduces M and shifts LM* back left. 4. Bagaimana cara mengontrol money supply? A) Melalui monetary policy. B) Melalui fiscal policy. C) Melalui monetary policy dan fiscal policy. D) Melalui investasi. Show Answer Correct Answer: A) Melalui monetary policy. 5. The Circular Flow model proves that the sectors of the economy are ..... A) Independent. B) Dependent. C) Interdependent. D) Round. Show Answer Correct Answer: C) Interdependent. 6. In the equation C=a+bY, what is a? A) Saving. B) Investment. C) Autonomous investment. D) Auronomous consumption. Show Answer Correct Answer: D) Auronomous consumption. 7. The aggregate supply curve shifts to the right when ..... A) Wage rates increase. B) Consumption decreases. C) Investment increases. D) Supplies of resources increase. Show Answer Correct Answer: D) Supplies of resources increase. 8. Suppose the Fed decides to buy bonds and New Hampshire Colonial Bank decides to sell $ 10 million worth of bonds. What will New Hampshire Colonial Bank most likely be able to do? A) Borrow more reserves from other banks. B) Make new loans totaling about $ 10 million. C) Reduce its outstanding loans by $ 10 million. D) Borrow more reserves at the "discount window" . Show Answer Correct Answer: B) Make new loans totaling about $ 10 million. 9. Which option is not studied in macroeconomics? A) The consequences of a higher interest rate. B) The effects of a lower exchange rate. C) The impacts of price changes in the market of smartphones. D) The impacts of progressive taxation. Show Answer Correct Answer: C) The impacts of price changes in the market of smartphones. 10. How would a significant increase in consumption and economic activity among a nation's consumers affect the nation's economy? A) It would decrease income inequality. B) It would cause inflation rates to rise. C) Businesses would be able to hire more workers. D) The value of the nation's currency would fall. Show Answer Correct Answer: B) It would cause inflation rates to rise. 11. What are the four factors of production?-J A) Land, Labor, Capital, Entrepeneurship. B) Capital, Cost, Credit, Collateral. C) Money, Money, Money, Money. D) There aren't four, there are five. Show Answer Correct Answer: A) Land, Labor, Capital, Entrepeneurship. 12. If the federal government wants to encourage businesses and consumers to spend more money, it would MOST LIKELY A) Increase the tax rate. B) Decrease the tax rate. C) Increase the reserve requirement. D) Decrease government spending on goods and services. Show Answer Correct Answer: B) Decrease the tax rate. 13. What is the difference between automatic stabilizers and discretionary Fiscal Policy measures? A) Automatic stabilizers are permanent policies while discretionary measures are temporary. B) Automatic stabilizers are implemented by the central bank while discretionary measures are implemented by the government. C) Automatic stabilizers respond automatically to changes in the economy while discretionary measures require a deliberate decision by the government. D) There is no difference between automatic stabilizers and discretionary measures. Show Answer Correct Answer: C) Automatic stabilizers respond automatically to changes in the economy while discretionary measures require a deliberate decision by the government. 14. Which situation below is MOST negatively affected by unanticipated inflation? A) Banks that loaned money at a fixed rate. B) Farmers with fixed rate mortgages. C) Businesses that profit from credit sales. D) Convenience stores that sell staple goods. Show Answer Correct Answer: A) Banks that loaned money at a fixed rate. 15. The law of increasing opportunity cost is reflected in the shape of the A) Production possibilities curve concave to the origin. B) Production possibilities curve convex to the origin. C) Straight-line production possibilities curve. D) Upward-sloping production possibilities curve. Show Answer Correct Answer: A) Production possibilities curve concave to the origin. 16. If taxes are raised, but the Fed prevents income from falling by raising the money supply, then A) Both consumption and investment remain unchanged. B) Consumption rises but investment falls. C) Investment rises but consumption falls. D) Both consumption and investment falls. Show Answer Correct Answer: C) Investment rises but consumption falls. 17. If supply of apples has fallen because of a worker shortage, and demand for apples has stayed the same, what will most likely happen to prices of apples? A) Prices will increase. B) Prices will decrease. Show Answer Correct Answer: A) Prices will increase. 18. The expenditure by households on consumption goods and services. A) Business Cycle. B) Exports of goods and services. C) Consumption expenditure. D) Government expenditure on goods and services. Show Answer Correct Answer: C) Consumption expenditure. 19. If the Keynesian consumption function is C=10+0.8 Y then, if disposable income is Rs 1000, what is amount of total consumption? A) ₹ 0.8. B) ₹ 800. C) ₹ 810. D) ₹ 0.81. Show Answer Correct Answer: C) ₹ 810. 20. The economy isn't doing very well due to a recession. Lots of people have been laid off and no one is buying anything because they don't have the money. If the Chair of the Federal Reserve wants to lower the unemployment rate, which policy should they choose? A) Lower the Federal Funds Rate. B) Raise the Federal Funds Rate. Show Answer Correct Answer: A) Lower the Federal Funds Rate. ← 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