This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 96 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 96 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. These are IOUs from the U.S. government to people that finance a little piece of the government's debt in exchange for a very small amount of interest A) Government Bonds, or Securities. B) Government Credit. C) Government Cash. D) Government Holdings. Show Answer Correct Answer: A) Government Bonds, or Securities. 2. If LRR is.25, what will be money multiplier A) 4. B) 1. C) 5. D) 2. Show Answer Correct Answer: A) 4. 3. The macroeconomic policy laid down by the central bank A) Inflation Rate. B) Demand-Pull Inflation. C) Monetary Policy. D) Fiscal Policy. Show Answer Correct Answer: C) Monetary Policy. 4. When the economy is experiencing an unemployment rate between 4-5%, an economist would say the economy is A) At full employment. B) On the cusp of a recession. C) Entering into inflation. D) At an unnatural rate. Show Answer Correct Answer: A) At full employment. 5. What are the criticisms of the unemployment rate? A) Discouraged workers:some people are no longer looking for a job because they have given up. Underemployed workers:Someone who wants more hours but can't get them is still considered employed. B) Percent of population in the labor force. If people leave the labor force, the unemployment rate falls. C) Index numbers assigned to each year that show how prices have changed relative to a specific base year (base year given 100). D) Unemployment caused by a recession. As demand for goods/services falls, demand for labor falls and workers are fired. Show Answer Correct Answer: A) Discouraged workers:some people are no longer looking for a job because they have given up. Underemployed workers:Someone who wants more hours but can't get them is still considered employed. 6. Illegal goods and services that are produced are ..... A) Included as an estimate in GDP. B) Included in GDP when the authorities can prove the amount. C) Included in the consumption category of GDP. D) Not counted in GDP. Show Answer Correct Answer: D) Not counted in GDP. 7. What is the difference between a household and a firm? A) A household consists of either an individual or a group of people who share their income; a firm is an organization that produces goods and services for sale. B) A firm consists of either an individual or a group of people who share their income; a household is an organization that produces goods and services for sale. C) They are the same. D) None of above. Show Answer Correct Answer: A) A household consists of either an individual or a group of people who share their income; a firm is an organization that produces goods and services for sale. 8. Higher taxes tend to A) Increase consumption. B) Increase unemployment. C) Cause inflation. D) Lesson government spending. Show Answer Correct Answer: B) Increase unemployment. 9. Interest rate that the Federal Reserve charges commercial banks for loans A) Discount rate. B) Monetary policy. C) Inside lag. D) Tight money policy. Show Answer Correct Answer: A) Discount rate. 10. Reduces extreme ups and downs in our economy and helps to keep prices from changing too quickly A) Security. B) Growth. C) Full employment. D) Stability. Show Answer Correct Answer: D) Stability. 11. Macroeconomics is concerned with all of the following except ..... A) The growth of real output. B) The level of unemployment. C) The general level of prices. D) Production methods and costs. Show Answer Correct Answer: D) Production methods and costs. 12. The aggregate demand curve will shift to the right as the result of A) An increase in corporate business taxes. B) A decrease in the real interest rate. C) Recessions in foreign nations that trade with the United States, causing a lower demand for U.S. products. D) An increase in the nominal interest rate. Show Answer Correct Answer: B) A decrease in the real interest rate. 13. Fiscal policy refers to changes in A) State and local taxes and purchases that are intended to achieve macroeconomic policy objectives. B) The money supply and interest rates that are intended to achieve macroeconomic policy objectives. C) Federal taxes and purchases that are intended to achieve macroeconomic policy objectives. D) Federal taxes and purchases that are intended to fund the war on terrorism. Show Answer Correct Answer: C) Federal taxes and purchases that are intended to achieve macroeconomic policy objectives. 14. The federal government is attempting to encourage spending by consume rs and businesses, a fiscal policy BEST serving this purpose would be A) Decreasing taxes. B) Decreasing government spending. C) Reducing the investment tax credit. D) Balancing the budget. Show Answer Correct Answer: A) Decreasing taxes. 15. Final goods are used by the A) Consumers. B) Producers. C) Government. D) All of these. Show Answer Correct Answer: D) All of these. 16. If the price of jelly increased at the same time that the price of peanuts decreased, what would happen to the market for peanut butter? A) Eq P increases, but we don't know what happens to Eq Q. B) Eq P decreases, but we don't know what happens to Eq Q. C) Eq Q increases, but we don't know what happens to Eq P. D) Eq Q decreases, but we don't know what happens to Eq P. Show Answer Correct Answer: B) Eq P decreases, but we don't know what happens to Eq Q. 17. Which of the followings is a monetary policy tool? A) A change in required reserves ratio of commercial bank. B) Controlling government expenditure. C) A reduction in personal income tax. D) An increase in public debt. Show Answer Correct Answer: A) A change in required reserves ratio of commercial bank. 18. If the government ..... spending on research and development, technological progress should ..... and economic growth will be ..... rapid. A) Taxes; increase; less. B) Subsidizes; increase; more. C) Subsidizes; decrease; less. D) Taxes; decrease; more. E) Subsidizes; increase; less. Show Answer Correct Answer: B) Subsidizes; increase; more. 19. The word macro is derived from the greek word ..... A) Mikros. B) Mycros. C) Makros. D) Mukos. Show Answer Correct Answer: C) Makros. 20. If the prices of input resources increase, then this event would most likely: A) Decrease aggregate supply. B) Increase aggregate supply. C) Decrease aggregate demand. D) Increase aggregate demand. Show Answer Correct Answer: A) Decrease aggregate supply. ← 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