This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is Cost-push inflation? A) The decrease prices of the factors of the production leads to decreased supply of these goods. B) The increase prices of the factors of the production leads to a decreased supply of these goods. Show Answer Correct Answer: B) The increase prices of the factors of the production leads to a decreased supply of these goods. 2. Which of the following is an example of expansionary fiscal policy? A) Lowering taxes. B) Decreasing government spending. C) Raising taxes. D) All of the above. Show Answer Correct Answer: A) Lowering taxes. 3. What is a period of macroeconomic expansion followed by a period of contraction or decline called? A) Microeconomics. B) Macroeconomics. C) Gross Domestic Product (GDP). D) Business Cycle. Show Answer Correct Answer: D) Business Cycle. 4. What is CPI? A) Measures the average price of consumer goods/services. B) Measures total prices of consumer goods. C) The same thing as the FBI. D) A decrease in price. Show Answer Correct Answer: A) Measures the average price of consumer goods/services. 5. Anything that people will accept as payment for goods and services. A) Money. B) Credit Cards. C) Cows. D) Gold. Show Answer Correct Answer: A) Money. 6. Which best describes an import or imported good? A) Goods that are bought from foreign countries. B) Goods that are bought within the same country. Show Answer Correct Answer: A) Goods that are bought from foreign countries. 7. An economy is in macroeconomic equilibrium, producing at its normal capacity level of output. Without long-run economic growth, a persistent increase in aggregate demand is likely to lead to an increase in the level of ..... A) Real GDP. B) Employment. C) Productivity. D) Prices. Show Answer Correct Answer: D) Prices. 8. Completed goods counted in the GDP A) Final Goods. B) Durable Goods. C) Intermediate Goods. D) Non-Durable Goods. Show Answer Correct Answer: A) Final Goods. 9. Who is Adam Smith's theory compared to? A) Buddha. B) Mr. King. C) Karl Marx. D) God. Show Answer Correct Answer: C) Karl Marx. 10. If the Government wishes to increase the level of real GDP, it might reduce A) Taxes. B) Transfer payment. C) The size of the budget deficit. D) Its purchase of good and service. Show Answer Correct Answer: A) Taxes. 11. All of the following are crucial social and economic goals for Macroeconomics but ..... A) Full Employment. B) Price instability. C) Economic Growth. D) Price Stability. Show Answer Correct Answer: B) Price instability. 12. Currency appreciation could be caused by A) Supply Increase or Demand Increase. B) Supply Increase or Demand Decrease. C) Supply Decrease or Demand Decrease. D) Supply Decrease or Demand Increase. Show Answer Correct Answer: D) Supply Decrease or Demand Increase. 13. The IRS lays off thousands of employees every year after April 15th. This is an example of A) Seasonal unemployment. B) Cyclical unemployment. C) Frictional unemployment. D) Structural unemployment. Show Answer Correct Answer: A) Seasonal unemployment. 14. Suppose, the real interest rate increases by 4%, the domestic inflation is 4% and the foreign inflation is 2%. How much will the nominal exchange rate change? A) 1%. B) 2%. C) 6%. D) 8%. Show Answer Correct Answer: B) 2%. 15. If the economy is in a recession, the Federal Reserve could do all of the following EXCEPT A) Lower taxes. B) Lower the discount rate. C) Buy securities. D) Lower the required reserve ratio. Show Answer Correct Answer: A) Lower taxes. 16. By 2020 the government must run budget surpluses during 'normal times' when GDP growth is 1% or more A) The golden rule (Gordon Brown 1997). B) The normal times rule (George Osborne 2015). C) The sustainable investment rule (EU). D) The arbitrary household budget fallacy rule (Post-Keynesians). Show Answer Correct Answer: B) The normal times rule (George Osborne 2015). 17. Which of the following scenarios will cause interest rates to fall? A) A balanced budget with an increase in taxes. B) A budget deficit with a decrease in taxes. C) A budget surplus with an increase in government spending. D) A balanced budget with an increase in government spending. Show Answer Correct Answer: A) A balanced budget with an increase in taxes. 18. What causes currency appreciation/depreciation? A) Perbedaan real exchange rate. B) Perbedaan nominal exchange rate. C) Export Import. D) Differences in inflation rates. Show Answer Correct Answer: D) Differences in inflation rates. 19. LM curve eq: A) $\frac{M.}{P.}=L\left(r, Y\right)$. B) $\frac{M}{P}=L\left(r, Y\right)$. C) $\frac{M.}{P.}=L\left(Y, r\right)$. D) $\frac{M}{P}=L\left(Y, r\right)$. Show Answer Correct Answer: A) $\frac{M.}{P.}=L\left(r, Y\right)$. 20. Which of the following is not the subject matter of macroeconomics? A) National Income Accounting. B) Business cycle. C) Laws of demand and supply. D) General price level. Show Answer Correct Answer: C) Laws of demand and supply. ← PreviousNext →Related QuizzesEconomics QuizzesMacroeconomics Quiz 1Macroeconomics Quiz 2Macroeconomics Quiz 3Macroeconomics Quiz 4Macroeconomics Quiz 5Macroeconomics Quiz 6Macroeconomics Quiz 8Macroeconomics Quiz 9Macroeconomics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books