This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... is spending on new productive physical capital, such as machinery and structures, and on changes in inventories. A) Investment Spending. B) Inventories. C) Disposable Income. D) Private Savings. Show Answer Correct Answer: A) Investment Spending. 2. GMC Auto Company is looking for ways to increase efficiency and cut costs. After conducting research the company decides to save money by having a company in Mexico assemble their cars. Which best illustrates the actions of the GMC Auto Company? A) Downsizing. B) Outsourcing. Show Answer Correct Answer: B) Outsourcing. 3. Which of the following is an example of Keynesian economics? A) Increasing taxes. B) Printing more currency. C) Increasing deficit spending. D) Increasing the reserve requirement. Show Answer Correct Answer: C) Increasing deficit spending. 4. Ability to produce more output per work hour, a country's standard of living depends on its ability to produce goods/services A) Human capital. B) Physical capital. C) Natural resources. D) Productivity. Show Answer Correct Answer: D) Productivity. 5. What is the aggregate demand curve? A) The aggregate demand curve shows the relationship between inflation and unemployment in an economy. B) The aggregate demand curve represents the total supply of goods and services in an economy at different price levels. C) The aggregate demand curve represents the total demand for goods and services in an economy at different price levels. D) The aggregate demand curve only applies to a closed economy and does not account for international trade. Show Answer Correct Answer: C) The aggregate demand curve represents the total demand for goods and services in an economy at different price levels. 6. Which of these describes the Fed's Board of Governors? A) There are fourteen of them, elected by popular vote every four years. B) There are seven of them, chosen by the President to serve fourteen-year terms. C) There are twelve of them, chosen by the President to serve four-year terms. D) There are seven of them, each of them also serving in a Congressional financial subcommittee. Show Answer Correct Answer: B) There are seven of them, chosen by the President to serve fourteen-year terms. 7. Accumulation of annual deficits over the years A) Deficit. B) National debt. C) Budget surplus. D) None of above. Show Answer Correct Answer: B) National debt. 8. ..... is monetary policy that reduces aggregate demand. A) Contractionary Monetary Policy. B) Expansionary Monetary Policy. C) Stagnant Monetary Policy. D) None of above. Show Answer Correct Answer: A) Contractionary Monetary Policy. 9. Contractionary or Expansionary?Due to the current persistent increases in prices, the Bangko Sentral ng Pilipinas (BSP) decided to make its borrowing services more expensive. What type of macroeconomic policy is being described in this case? A) Contractionary. B) Expansionary. Show Answer Correct Answer: A) Contractionary. 10. Substitutes in production A) Alternative products that producers COULD use their resources to make. B) The quantity of something that producers have available for sale. C) A curve that shows the relationship between the price of a product and the quantity of the product supplied. D) The action of buying and selling goods and services. Show Answer Correct Answer: A) Alternative products that producers COULD use their resources to make. 11. If M increases and V increases A) Nominal GDP increases. B) Nominal GDP decreases. C) Nominal GDP stays the same. D) The effect on nominal GDP is indeterminate. Show Answer Correct Answer: A) Nominal GDP increases. 12. What is the purpose of GDP? A) To reflect the overall health and growth of an economy. B) To measure inflation. C) To measure unemployment. D) None of above. Show Answer Correct Answer: A) To reflect the overall health and growth of an economy. 13. The unemployment rate is calculated as the number of A) Unemployed persons divided by number of employed persons. B) Persons in the labor force divided by the number of unemployed. C) Unemployed divided by size of the labor force. D) Employed persons divided by number of unemployed persons. Show Answer Correct Answer: C) Unemployed divided by size of the labor force. 14. Which of the following would be included in calculating GDP? A) Intermediate goods. B) Stocks. C) Social Security checks. D) Unsold goods produced by a business. Show Answer Correct Answer: D) Unsold goods produced by a business. 15. Sum of the employed and the unemployed A) Employed. B) Unemployment. C) Labor Force. D) None of above. Show Answer Correct Answer: C) Labor Force. 16. An improvement in the technology used in the production of automobiles and an increase in the need for automobile transportation will most likely cause the price and quantity of automobiles to change in which of the following ways? A) Increase Price; Increase Quantity. B) Indeterminate Price; Increase Quantity. C) Increase Price; Indeterminate Quantity. D) Decrease Price; Decrease Quantity. Show Answer Correct Answer: B) Indeterminate Price; Increase Quantity. 17. Unemployment ..... during recession and ..... during expansion A) Rises, rises. B) Falls, rises. C) Falls, falls. D) Rises, falls. Show Answer Correct Answer: D) Rises, falls. 18. When taxes are equal to government spending this leads to a: A) Budget Deficit. B) Budget Surplus. C) Balanced Budget. D) Budget Shortage. Show Answer Correct Answer: C) Balanced Budget. 19. How many FRQ questions will appear on the AP Micro exam? A) 30. B) 1. C) 2. D) 3. Show Answer Correct Answer: D) 3. 20. A general rise in overall prices is called: A) Deflation. B) Inflation. C) Consumer Price Index. D) Federal Reserve. Show Answer Correct Answer: B) Inflation. ← PreviousNext →Related QuizzesEconomics QuizzesMacroeconomics Quiz 1Macroeconomics Quiz 2Macroeconomics Quiz 3Macroeconomics Quiz 4Macroeconomics Quiz 5Macroeconomics Quiz 6Macroeconomics Quiz 7Macroeconomics Quiz 9Macroeconomics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books