This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 88 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 88 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A sudden decrease in aggregate supply will result in:I. Real output will fallII. Price level increasesIII. Increase in interest ratesIV. Increased investment A) I and II only. B) I, II, and III only. C) II, III, and IV only. D) I, II, III, and IV. Show Answer Correct Answer: B) I, II, and III only. 2. What factor determine the slope of IS? A) Interest sensitivity of money demand. B) Interest elasticity of investment. C) High sensitive of investment. D) Low sensitive of investment. Show Answer Correct Answer: B) Interest elasticity of investment. 3. The demand curve for money is A) A vertical line. B) A horizontal line. C) A downward slope. D) A upward slope . Show Answer Correct Answer: C) A downward slope. 4. Which best explains the law of demand? A) As the amount of a good increases, the price that consumers are willing to pay increases. B) As the price of a good decreases, the amount that consumers are willing to purchase increases. C) As the amount of a good increases, the price that consumers are willing to pay decreases. D) As the price of a good decreases, the amount that consumers are willing to purchase decreases. Show Answer Correct Answer: B) As the price of a good decreases, the amount that consumers are willing to purchase increases. 5. It is possible for an economy to produce beyond it's long run aggregate supply because ..... A) It can find more resources. B) It can "dip into" its natural unemployment rate to hire people who may be temporarily unemployed. C) It can figure out how to produce more efficiently. D) It can use a different measure to account for production. Show Answer Correct Answer: B) It can "dip into" its natural unemployment rate to hire people who may be temporarily unemployed. 6. This tax, in its effect, takes a higher percentage from people with higher incomes. A) Proportional. B) Regressive. C) Progressive. D) Ingressive. Show Answer Correct Answer: C) Progressive. 7. Consumer Price Index (CPI) is a measurement of ..... A) Inflation. B) Unemployment. C) Exchange Rates. D) International Trade. Show Answer Correct Answer: A) Inflation. 8. Which country is NOT in the "fragile five" ? A) Turkey. B) Brazil. C) India. D) Canada. Show Answer Correct Answer: D) Canada. 9. Policy at the federal level refers to legislation, passed by Congress and signed into law by the President, changing levels of taxation and/or government spending to stabilize the economy A) Monetary. B) Fiscal. Show Answer Correct Answer: B) Fiscal. 10. This happens when there is an increase in the production of goods and services. A) Economic Development. B) Economic Progress. C) Economic Growth. D) Economic efficiency. Show Answer Correct Answer: C) Economic Growth. 11. Per person A) Quantity. B) 1-for-1. C) Per capita. D) Per individual. Show Answer Correct Answer: C) Per capita. 12. Instead of "entrepreneurship" as one of the 4 factors of production this word is often used A) Mrs. Dame rocks. B) Transportation. C) Technology. D) Instagram. Show Answer Correct Answer: C) Technology. 13. Who gets hurt the most by unexpected inflation? A) Borrowers. B) Lenders/Creditors. C) Consumers. D) Businesses. Show Answer Correct Answer: B) Lenders/Creditors. 14. There is an inverse relationship between the price level and real gross domestic product (RGDP) in aggregate demand. True/False A) True. B) False. Show Answer Correct Answer: A) True. 15. ..... the comparison among producers of a good according to their opportunity cost A) Opportunity Cost. B) Comparative advantage. C) Trade. D) None of above. Show Answer Correct Answer: B) Comparative advantage. 16. The ..... emphasizes the positive relationship between the price level and the money supply, and relies on the velocity equation (M x V = P x Y) A) Quantity Theory of Money. B) Rational Expectations. C) Monetary Policy Rule. D) Supply Theory of Money. Show Answer Correct Answer: A) Quantity Theory of Money. 17. What is a leakage? A) Money that is spent on dumb things. B) Things that relate to water in the economy. C) Things that stop economic growth e.g taxation, imports, savings. D) None of the above. Show Answer Correct Answer: C) Things that stop economic growth e.g taxation, imports, savings. 18. What exists in a highly competitive market but not in monopoly? A) Barriers to entry. B) Economies of scale. C) Many sellers. D) Product differentiation. Show Answer Correct Answer: C) Many sellers. 19. Which is TRUE regarding interest rates? A) The FED cannot adjust interest rates. B) Interest rates and Price Level are inversely related. C) Interest rates and Investment are inversely related. D) Increase in interest rates increases government spending. Show Answer Correct Answer: C) Interest rates and Investment are inversely related. 20. The United States prohibited all imports and exports to and from Cuba in the 1960s. A) Tariff. B) Quota. C) Embargo. D) None of above. Show Answer Correct Answer: C) Embargo. ← 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