This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 97 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 97 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the nominal wage doubles and the price level does not change, how will the real wage change? A) 2 times increase. B) Decrease by 2 times. C) I don't know. D) Will not change. Show Answer Correct Answer: A) 2 times increase. 2. Which of the following is NOT a type of social security insurance? A) Provident Fund and Pension. B) Health Insurance and Medical Benefit. C) Disability Benefit. D) Life Insurance. Show Answer Correct Answer: D) Life Insurance. 3. What does the vertical axis represent on the aggregate demand curve? A) Total Input. B) Total Output. C) Price Level. D) Both A&B. Show Answer Correct Answer: C) Price Level. 4. What are the economic effects of unemployment? A) Unemployment has negative effects on consumer spending, economic growth, government revenue, and social well-being. B) Unemployment has positive effects on consumer spending, economic growth, government revenue, and social well-being. C) Unemployment has no effect on consumer spending, economic growth, government revenue, and social well-being. D) Unemployment has only negative effects on social well-being. Show Answer Correct Answer: A) Unemployment has negative effects on consumer spending, economic growth, government revenue, and social well-being. 5. Labour income A) MPL x L. B) MPL x K. C) MPK x K. D) MPK x L. Show Answer Correct Answer: A) MPL x L. 6. What is a metric we can use to calculate inflation and deflation? A) CPI. B) GDP and GNP. C) Stocks. D) Porter's 5 Forces. Show Answer Correct Answer: A) CPI. 7. When deviations below the inflation target are seen to be less important than deviations above the target A) Asymmetric inflation target. B) Symmetric inflation target. C) Balanced inflation target. D) Unbalanced inflation target. Show Answer Correct Answer: A) Asymmetric inflation target. 8. One of the important parts of economics is interdependence. Which of the following is an example of interdependence? A) People growing their food. B) People cooking food at home. C) People often move to places that aren't as crowded. D) People need goods and services provided by other people. Show Answer Correct Answer: D) People need goods and services provided by other people. 9. Fiscal policy:decrease in govt purchases A) Shifts IS curve to right. B) Shifts IS curve to left. C) Shifts LM curve to right. D) Shifts LM curve to left. Show Answer Correct Answer: B) Shifts IS curve to left. 10. An increase in the money supply shifts the ..... curve to the right, and the aggregate demand curve ..... A) IS; shifts to the right. B) IS; does not shift. C) LM; shifts to the right. D) LM; does not shift. Show Answer Correct Answer: C) LM; shifts to the right. 11. Natural resources that can replenish themselves with proper management and care A) Non-renewable. B) Renewable. C) Automatic. D) Voluntary. Show Answer Correct Answer: B) Renewable. 12. In a competitive economy, which firms will have the most access to the factors of production (productive resources)? A) The firms that are most successful in meeting consumer demand. B) The firms that are least successful in meeting consumer demand. C) The firms that have the most production experience. D) The firms that offer the greatest variety of goods/services. Show Answer Correct Answer: A) The firms that are most successful in meeting consumer demand. 13. When high inflation is combined with low economic growth, this is called: A) Deflation. B) Inflation. C) Stagflation. D) Noflation. Show Answer Correct Answer: C) Stagflation. 14. All of the following are objectives of macroeconomic management except: A) External stability. B) Economic growth. C) Full employment. D) High inflation. Show Answer Correct Answer: D) High inflation. 15. Which of the following statements is the most appropriate description of grossdomestic product (GDP)? A) The total income earned by all households, firms, and the governmentwhose value can be verified. B) The total amount spent on all final goods and services produced within the economy during a given period. C) The total market value of resalable and final goods and services producedwithin the economy during a given period. D) None of above. Show Answer Correct Answer: B) The total amount spent on all final goods and services produced within the economy during a given period. 16. A period of expansion and contraction of aggregate economic activity measured by real GDP is called a A) Lag. B) Real GDP. C) Business cycle. D) Growth indicator. Show Answer Correct Answer: C) Business cycle. 17. Why does expansionary monetary policy causes interest rates to drop? A) Expansionary monetary policy causes interest rates to drop because it increases the money supply and competition among lenders. B) Expansionary monetary policy causes interest rates to drop because it leads to higher demand for loans and higher interest rates. C) Expansionary monetary policy causes interest rates to drop because it reduces inflation and increases the value of money. D) Expansionary monetary policy causes interest rates to drop because it decreases the money supply and competition among lenders. Show Answer Correct Answer: A) Expansionary monetary policy causes interest rates to drop because it increases the money supply and competition among lenders. 18. If government spending and taxes decrease by the same amount A) The IS curve does not shift. B) The IS curve shifts leftward. C) The IS curve shifts rightward. D) The LM curve shifts downward. Show Answer Correct Answer: B) The IS curve shifts leftward. 19. Consumption expenditure is one of the factors affecting ..... A) AD CURVE. B) AS CURVE. Show Answer Correct Answer: A) AD CURVE. 20. Shows the relationship between the aggregate price level and the quantity of aggregate output demanded by households, business, the government, and the rest of the world A) Aggregate Supply. B) Aggregate Demand. C) CPI. D) GDP. Show Answer Correct Answer: B) Aggregate Demand. ← 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