This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 90 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 90 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Savings A) Chart. B) Fixed costs. C) Savings. D) Investments. Show Answer Correct Answer: C) Savings. 2. The economy of Burginville has experienced high rates of inflation over the past 10 years.According to the quantity theory of money, which of the following is the most likely explanation for the sustained inflation during this period? A) Better banking technology that has decreased the velocity of money. B) Contractionary monetary policy. C) Expansionary monetary policy. D) Strong economic growth. E) A money supply that has increased at the same pace as real output. Show Answer Correct Answer: C) Expansionary monetary policy. 3. Which of the following would cause the long-run Phillips curve to shift to the right? A) A decrease in frictional unemployment. B) An increase in cyclical unemployment. C) An increase in structural unemployment. D) An increase in aggregate demand (AD). E) A decrease in aggregate demand (AD). Show Answer Correct Answer: C) An increase in structural unemployment. 4. Which topic is included in microeconomics? A) Economic growth. B) Elasticity of demand. C) Inflation. D) The balance of payments. Show Answer Correct Answer: B) Elasticity of demand. 5. Assume that last year the consumer price index (CPI) was 150 and a household's nominal income was $ 30, 000. If the CPI this year is 160, to be as well off as last year, the household should have an increase in nominal income of A) $ 1, 800. B) $ 1, 875. C) $ 2, 000. D) $ 3, 000. E) $ 4, 800 . Show Answer Correct Answer: C) $ 2, 000. 6. Perfect competition market price of a good is determined by A) Industry. B) Government. C) A Firm. D) Market demand. Show Answer Correct Answer: A) Industry. 7. In a competitive labor market, an increase in the minimum wage results in a(n) ..... in the quantity of labor supplied and a(n) ..... in the quantity of labor demanded. A) Increase, increase. B) Decrease, decrease. C) Increase, decrease. D) Decrease, increase. Show Answer Correct Answer: C) Increase, decrease. 8. In which type of society would we most likely find a traditional economic system? A) A major city. B) An established country. C) Rural and under-developed territory. D) All of the above. Show Answer Correct Answer: C) Rural and under-developed territory. 9. The index number for base year is always ..... A) 1000. B) 200. C) 100. D) 10. Show Answer Correct Answer: C) 100. 10. TRUE or FALSE:Another name for nominal GDP is current-price GDP. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 11. When you open a savings account at a bank, you are using money as a ..... A) Store of value. B) Unit of value. C) Medium of exchange. D) Consumer price index. Show Answer Correct Answer: A) Store of value. 12. Inflation is a rise in: A) The general level of prices over time. B) Real GDP. C) Industrial production. D) The standard of living over time. Show Answer Correct Answer: A) The general level of prices over time. 13. Which of the following would be negatively affected from unanticipated inflation? A) People that own investments that pay a fixed rate of interest, such as bonds. B) Entrepreneurs who borrow money. C) Workers with cost of living increases. D) People with fixed rate home mortgages. E) Individuals who take out personal loans. Show Answer Correct Answer: A) People that own investments that pay a fixed rate of interest, such as bonds. 14. Choose the formula that most correctly explains savings, investment and international flows! A) S = 1 + NX. B) S = I + NCO. C) S = 1 + NCO. D) S = Y-C-NX. Show Answer Correct Answer: B) S = I + NCO. 15. When a lot of sellers exit the market, the supply curve A) Shifts left. B) Shifts right. C) Does not shift. D) None of above. Show Answer Correct Answer: A) Shifts left. 16. An expansionary fiscal policy would most likely cause which of the following changes in output and interest rates? (1) Outputs-(2) Interest Rates A) Increase-(2) Increase. B) Increase-(2) Decrease. C) Decrease-(2) Increase. D) Decrease-(2) Decrease. E) No change-(2) Decrease. Show Answer Correct Answer: A) Increase-(2) Increase. 17. An economist is presented with information about the prices of a selection of goods over several years. This information would be MOST useful for which purpose? A) To compile a price index to measure inflation. B) Calculating Gross Domestic Product. C) For calculating unemployment. D) Deciding whether or not to buy bonds on the open market. Show Answer Correct Answer: A) To compile a price index to measure inflation. 18. If the marginal propensity to consume is two-thirds, the multiplier is A) 30. B) 66. C) 1.5. D) 3. Show Answer Correct Answer: D) 3. 19. How does a government-funded construction project stimulate spending? A) By requiring construction workers to buy equipment. B) By providing construction workers with regular income. C) By selling leftover materials to construction workers. D) By creating homes for construction workers to rent. Show Answer Correct Answer: B) By providing construction workers with regular income. 20. During economic crisis, the primary role of the Government is to promote a healthy economy by ..... A) Controlling the budget. B) Setting spending levels. C) Managing taxes and government spending. D) Loaning out money. Show Answer Correct Answer: C) Managing taxes and government spending. ← 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