This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 84 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 84 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following shifts aggregate demand to the right? A) An increase in the money supply. B) An increase in net exports at every exchange rate. C) An investment tax credit. D) All of the above are correct. Show Answer Correct Answer: D) All of the above are correct. 2. Taxation for which the tax rate regresses from high to low so that the taxpayers' average tax rate becomes greater than their marginal tax rate (even though both are falling). These take a larger proportion of poorer households' incomes A) Flat rate / proportional tax. B) Progressive taxation. C) Regressive taxation. D) Direct taxation. Show Answer Correct Answer: C) Regressive taxation. 3. The unemployment rate is equal to the number of unemployed people divided by the working age population. A) True. B) Lie. Show Answer Correct Answer: B) Lie. 4. A bulldozer is an example of ..... A) Land. B) Labor. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: D) Capital. 5. Which of the following statements would Friedrich Hayek most likely to agree with? A) Managing the economy through stabilization policy is easy and effective. B) The economy will repair itself eventually. C) Markets work best when the government intervenes. D) None of the Above. Show Answer Correct Answer: B) The economy will repair itself eventually. 6. Which of the following would NOT be considered unemployed? A) A retired engineer looking for a part-time job to supplement their income. B) A drama school graduate who gives up looking for acting jobs and moves home. C) A college student home for the summer looking for a construction job. D) A laid off autoworker from Michigan who moves to California looking for a new job. Show Answer Correct Answer: B) A drama school graduate who gives up looking for acting jobs and moves home. 7. M1= A) Currency. B) Currency plus demand deposits, traveler's checks and other checkable deposits. C) M1 plus retail money market mutual fund balances, saving deposits (including money market deposit accounts) and small time deposits. D) None of above. Show Answer Correct Answer: B) Currency plus demand deposits, traveler's checks and other checkable deposits. 8. Assume that wages and prices are fully flexible and all inflation is correctly anticipated.According to the quantity theory of money, what would be the impact of expansionary monetary policy on real output and the price level? A) Real output increases, no impact on price level. B) Real output decreases, price level decreases. C) Real output increases, price level increases. D) No impact on real output, price level increases. E) No impact on real output, no impact on the price level. Show Answer Correct Answer: D) No impact on real output, price level increases. 9. Price level stability is one of the macroeconomic goals. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 10. Joe is an 18 year old high school student. If there is a sharp rise in interest rates, which situation BEST reflects how Joe's life might be impacted? A) He might not be able to eat fast food as often. B) He might have to purchase a less-expensive car. C) He might not go out with his friends every Saturday. D) He might need to make his clothes last a little longer. Show Answer Correct Answer: B) He might have to purchase a less-expensive car. 11. Which fiscal policy would Congress use during Peak? A) Decrease interest rates. B) Increase interest rates. C) Increase taxes. D) Decrease government spending. Show Answer Correct Answer: C) Increase taxes. 12. ..... is implemented by BANGKO SENTRAL NG PILIPINAS to achieve economic balance and stability. A) MONETARY IMPLEMENTATION. B) MONETARY POLICY. C) MONETARY BALANCE. D) None of above. Show Answer Correct Answer: B) MONETARY POLICY. 13. What is the Federal Reserve System? A) The central bank of the United States. B) The legislative body responsible for passing fiscal policies. C) The committee that determines the federal funds rate. D) The committee that oversees government budget deficits. Show Answer Correct Answer: A) The central bank of the United States. 14. When a country makes and sells less things over time, and people have more jobs is known as "Economic Growth." A) True. B) False. Show Answer Correct Answer: B) False. 15. In all market structures, what must firms equate to ensure allocative efficiency? A) Average cost and average revenue. B) Average cost and marginal revenue. C) Marginal cost and average revenue. D) Marginal cost and marginal revenue. Show Answer Correct Answer: C) Marginal cost and average revenue. 16. The yearly total value of all finished good/services produced within a a country is known as ..... A) Gross Domestic Product. B) Consumer Price Index. C) Multiplier Effect. D) Aggregate Supply. Show Answer Correct Answer: A) Gross Domestic Product. 17. Which of the following topics refers to the study of macroeconomics? A) The National Income. B) Buyer Behavior and Behavior. C) The Behavior and Behavior of the Producer. D) The Interaction of Demand and Supply. Show Answer Correct Answer: A) The National Income. 18. In the summer, Ashley works for a local farmer. She picks strawberries so she can save up for college. Once winter hits, she stops working in the fields and looks for a new job. What type of unemployment is she experiencing? A) Frictional. B) Structural. C) Seasonal. D) Cyclical. Show Answer Correct Answer: C) Seasonal. 19. Why are the intermediate goods not included in the National Income while measuring National Income? A) To avoid double accounting. B) It decreases income. C) Intermediate goods are not good. D) All of these. Show Answer Correct Answer: A) To avoid double accounting. 20. If demand for golf balls decreases when the price of baseball gloves decreases, we can stay that baseball gloves and golf balls players are A) Normal goods. B) Inferior goods. C) Substitute goods. D) Complementary goods. E) Unrelated due to the substitution effect. Show Answer Correct Answer: C) Substitute goods. ← 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