This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 101 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 101 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Phase of the business cycle when it could be said that Real GDP is at its highest point, the economy is close to full employment, and the price level is increasing. A) Peak. B) Trough. C) Recession. D) Recovery. Show Answer Correct Answer: A) Peak. 2. Which of the following actions would most likely lead to a shift to the left of the short-run Phillips curve, or SRPC? A) A strong government commitment to reducing structural unemployment. B) A strong government commitment to engage in expansionary fiscal policy. C) A strong central bank commitment to reducing inflation. D) A strong central bank commitment to increasing the money supply. E) A strong central bank commitment to decreasing cyclical unemployment. Show Answer Correct Answer: C) A strong central bank commitment to reducing inflation. 3. Economic policies that involve government spending and taxes A) Traditional Economy. B) Fiscal Policy. C) Monetary Policy. D) Regulatory Policy. Show Answer Correct Answer: B) Fiscal Policy. 4. The Phillips Curve shows the tradeoff between A) Inflation and unemployment. B) Supply and demand. C) Two production options. D) Price level and GDP. Show Answer Correct Answer: A) Inflation and unemployment. 5. The largest sector of the macroeconomy is the A) Consumer sector. B) Investment sector. C) Government sector. D) Foreign sector. Show Answer Correct Answer: A) Consumer sector. 6. Which of the following actions would increase the money supply? A) A child burns a $ 10 bill. B) A woman deposits cash into her savings account. C) A bank issues a new loan to a customer. D) A man deposits cash into his checking account. Show Answer Correct Answer: C) A bank issues a new loan to a customer. 7. The money demand function (M/P)D =1000-100r. With M=1000 and P=2, the real money supply (M/P)S =500. What is the equilibrium interest rate? A) R = 10. B) R = 2. C) R = 5. D) R = 6. Show Answer Correct Answer: C) R = 5. 8. Cyclical unemployment A) Describes recent college graduates. B) Describes employees moving from one job to another. C) Lasts longer than 6 months. D) Increases inflation Increases inflation. Show Answer Correct Answer: C) Lasts longer than 6 months. 9. Which of the following would cause the US dollar to depreciate relative to the Canadian dollar? A) An increase in net capital flows from Canada to the US. B) An increase in the real interest rate in Canada relative to the US. C) A decrease in exports from Canada to the US. D) A doubling of prices in both Canada and the US. E) An increase in the balance of payments on the current account in the US. Show Answer Correct Answer: B) An increase in the real interest rate in Canada relative to the US. 10. Y =C + ( K)K is refers to A) Investment. B) Export. C) Saving. D) Consumption. Show Answer Correct Answer: C) Saving. 11. Which answer describes changes in the U.S. money supply BEFORE the establishment of the Federal Reserve System? A) The money supply was constant and unchanging. B) The money supply could change dramatically and unexpectedly. C) Only the president could change the supply of money available. D) There were no important differences between the money supply then and now. Show Answer Correct Answer: B) The money supply could change dramatically and unexpectedly. 12. Who is in responsible for the private local banks? A) The Presidents of the 12 district banks. B) The Chariman. C) The Fed. D) The 12 district banks. Show Answer Correct Answer: D) The 12 district banks. 13. How will labour unions affect an employee? A) They negotiate the working conditions and wages received. B) Support restrictions on imported goods through quotas and tariffs. C) The prices of products raise to a higher amount. D) They don't affect an employee. Show Answer Correct Answer: A) They negotiate the working conditions and wages received. 14. Which of the following are components of the macroeconomics? A) Land. B) Foreign Sector. C) Capital. D) Labor. Show Answer Correct Answer: B) Foreign Sector. 15. Keynesian thinking is called- A) Monetarism. B) Structuralism. C) Classical doctrine. D) Revolutionary (Radical) doctrine. Show Answer Correct Answer: B) Structuralism. 16. Combination of inflation and a stagnate economy A) Stagflation. B) Aggregate Supply. C) Inflation. D) Aggregate Demand. Show Answer Correct Answer: A) Stagflation. 17. A loan can be denied by a lender because of a person's- A) Gender. B) Credit history. C) Health. D) Education. Show Answer Correct Answer: B) Credit history. 18. Importants state and local spending items include: A) Highways; public safety. B) Public safety; traffic cones. C) Crosswalks; public schools. D) Donut shoppes and grass mowing. Show Answer Correct Answer: A) Highways; public safety. 19. The government hires contractors to build and pave highways. Is this included in GDP within the expenditures model? A) NO. B) YES. Show Answer Correct Answer: B) YES. 20. ..... is concerned with how supply & demand interact in individual markets for goods and services. A) Microeconomics. B) Macroeconomics. Show Answer Correct Answer: A) Microeconomics. 21. How many possible sources of Money are there? A) 2. B) 4. C) 1. D) 3. Show Answer Correct Answer: D) 3. 22. If the Federal Reserve decreases the rate on required and excess reserves, what would be the ideal outcome? A) Real GDP decreases and deflation occurs. B) Real GDP rises and the unemployment rate increases. C) Real GDP rises and the unemployment rate decreases. D) Real GDP decreases and the unemployment rate decreases. Show Answer Correct Answer: C) Real GDP rises and the unemployment rate decreases. 23. The willingness of citizens to pay for a vaccination does not include the benefit society receives from having vaccinated citizens who cannot transmit an illness to others. This extra benefit society gets from vaccinating its citizens is known as: A) Productivity. B) An externality. C) Market power. D) Property rights. Show Answer Correct Answer: B) An externality. 24. What was the first permanent labor union; it used strikes as a tactic? A) American Federation of Labor. B) Labor Goals. C) Knights of Columbus. D) International Workers of the World. Show Answer Correct Answer: A) American Federation of Labor. 25. The net exports effect suggests that a decrease in Canada's price level relative to other countries will: A) Shift the aggregate demand curve leftward. B) Shift the aggregate supply curve leftward. C) Decrease Canada's exports and increase Canada's imports. D) Increase Canada's exports and decrease Canada's imports. Show Answer Correct Answer: D) Increase Canada's exports and decrease Canada's imports. 26. Setting the discount and interest rates establishing reserve requirements for banks buying and selling US government securities All of these are ways in which the Federal Reserve system can A) Control the stock market. B) Regulate the money supply. C) Decrease consumer spending. D) Challenge Presidential power. Show Answer Correct Answer: B) Regulate the money supply. 27. Which one of the following statements describes why the aggregate demand (AD) curve slopes downward? A) As inflation rises, real wealth declines, so people tend to demand less goods and services. B) As inflation rises, the real money supply declines, raising interest rates and discouraging investment. C) As inflation rises the Fed will tend to raise interest rates, which reduces investment and aggregate demand. D) As inflation rises, exports become more expensive and imports become more attractive to domestic consumers, lowering aggregate demand. E) All of the above. Show Answer Correct Answer: E) All of the above. 28. Which statement about the meaning of government economic aims is correct? A) Economic growth means that a country's real output must rise over time. B) Full employment means that no one must be unemployed. C) Price stability means that the price of all goods and services must remain unchanged. D) Redistribution of income means that everyone must have equal incomes. Show Answer Correct Answer: A) Economic growth means that a country's real output must rise over time. 29. ..... is the total number of people currently employed, either full time or part-time. A) Employment. B) Stagflation. C) Unemployment. D) The Work Force. Show Answer Correct Answer: A) Employment. 30. Stock prices are going up in a: A) Bear Market. B) Soft Market. C) Bull Market. D) Peak Market. Show Answer Correct Answer: C) Bull Market. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesMacroeconomics Quiz 1Macroeconomics Quiz 2Macroeconomics Quiz 3Macroeconomics Quiz 4Macroeconomics Quiz 5Macroeconomics Quiz 6Macroeconomics Quiz 7Macroeconomics Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books