This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 106 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 106 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. TRUE or FALSE:An increase in inflation will shift the AD curve to the right. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 2. Which of the following would not be counted in the Australian BOP current account? A) France purchases a new ferry from a company in Tasmania. B) John receives a $ 50 dividend cheque on stock he owns in a business in Germany. C) BHP owns buildings that are situated in Mexico. D) Helen, an Australian oil engineer, is a paid adviser to Middle Eastern countries in the area of petroleum extraction. Show Answer Correct Answer: C) BHP owns buildings that are situated in Mexico. 3. The following are three (3) macroeconomic variables that are often used by economists to analyze the economic performance of a region, except..... A) Real GDP. B) Unemployment Rate. C) Inflation Rate. D) Nominal GDP. Show Answer Correct Answer: D) Nominal GDP. 4. Index numbers assigned to each year that show how prices have changed relative to a specific base year (base year given 100) A) Full Employment Output. B) Inflation. C) Causes of Inflation. D) Price Indices. Show Answer Correct Answer: D) Price Indices. 5. Which bank account earns you the most interest? A) Savings. B) Checking. C) Certificate of Deposit. D) None of above. Show Answer Correct Answer: C) Certificate of Deposit. 6. Which of the following scenarios will cause interest rates to increase? A) A budget deficit and expansionary fiscal plicy. B) A balanced budget and expansionary fiscal policy. C) A budget surplus and expansionary fiscal policy. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. A rise in the overall price level A) Aggregate Supply. B) GDP. C) Market Basket. D) Inflation. Show Answer Correct Answer: D) Inflation. 8. The ..... shows the various combinations of output and interest rate when the money market is in equilibrium. A) LM curve. B) IS curve. C) Demand curve. D) Supply curve. Show Answer Correct Answer: A) LM curve. 9. Crowding Out Effect A) Wages and Resource Costs will increase as price levels increase. B) Measures the effect of the economy on inflation and unemployment with an inverse relationship. C) No tradeoff between inflation and unemployment, represented by a vertical line at the NRU. D) Government spending might cause unintended effects that weaken the impact of the policy. E) Wages and Resource Costs will not increase as price levels increase. Show Answer Correct Answer: D) Government spending might cause unintended effects that weaken the impact of the policy. 10. What is it called when a worker takes a lower skilled job when they are overqualified to earn money to pay bills? A) Underemployed worker. B) A structural worker. C) A discouraged worker. D) A seasonal worker. Show Answer Correct Answer: A) Underemployed worker. 11. Assume autonomous consumption is $ 20, investment is $ 30, government expenditure is 40, net exports 10. Suppose the mpc=0.7 and the tax rate=0.2. What is the consumption function for the open economy? A) C = 20 + 0.56Y. B) C = 20 + 0.7Y. C) AE = 100 + 0.56Y. D) None of above. Show Answer Correct Answer: A) C = 20 + 0.56Y. 12. Daffa buys stock $ 1, 000. He has to pay $ 50 for broker fee. How much can be counted in GDP? A) $ 0 (neither stock nor broker fee). B) $ 1000 (only the stock). C) $ 50 (only the broker fee). D) $ 1050 (stock + broker fee). Show Answer Correct Answer: C) $ 50 (only the broker fee). 13. The SRAS curve illustrates: A) The level of output in the shortrun when the economy to cope with changes in AD. B) The long-term potential output of an economy. C) The effect of expansionary fiscal policy. D) The quantity of output firms are willing to produce at a given price in the short run. Show Answer Correct Answer: A) The level of output in the shortrun when the economy to cope with changes in AD. 14. Which pairs of operations BEST fit with fiscal policy? A) Government spending and taxation. B) Taxation and open market operations. C) Discount rate and government spending. D) Open market operations and discount rate. Show Answer Correct Answer: A) Government spending and taxation. 15. How many multiple choice questions are there on the AP Microeconomics exam? A) 75. B) 45. C) 90. D) 60. Show Answer Correct Answer: D) 60. 16. If a car is purchased by a taxi operator, it will be regarded as a A) Capital goods. B) Intermediate goods. C) Final goods. D) Both A and B. Show Answer Correct Answer: D) Both A and B. 17. Monetary value of any spending on final goods and services by a local, state, or national government in a given time period. A) Government Spending. B) Consumer Spending. C) Investment. D) Net Exports. Show Answer Correct Answer: A) Government Spending. 18. The consumer price index (CPI) is a measure of overall costs of the goods/services bought by a typical consumer A) True. B) False. Show Answer Correct Answer: A) True. 19. An example of fiscal policy is ..... A) The purchase or selling of securities and treasury bills in the open market. B) Influencing the rate of interest on deposits. C) Adjusting the bank rate or discount rate. D) A change in value added tax. Show Answer Correct Answer: D) A change in value added tax. 20. The LRAS curve is: A) A reflection of temporary economic changes. B) Depictive of the economy's output when at full capacity. C) A representation of short-run output fluctuations. D) Determined by short-term supply shocks. Show Answer Correct Answer: B) Depictive of the economy's output when at full capacity. 21. Relating to society and economics A) Economical. B) Sociological. C) Economic-socio. D) Socio-economic. Show Answer Correct Answer: D) Socio-economic. 22. Items that firms in the United States produce and sell to the rest of the world A) Imports of goods and services. B) Investment. C) Nominal GDP. D) Exports of goods and services. Show Answer Correct Answer: D) Exports of goods and services. 23. In the GDP equation, what does the 'I' stand for?GDP = C + I + G + (X-M) A) Investment spending. B) Investor spending. C) Intelligent spending. D) Incredible spending. Show Answer Correct Answer: A) Investment spending. 24. Which of these policies will have the most negative effect on inequality? A) Education and training. B) Encouraging competition by regulating monopolies. C) Reducing corporation tax. D) Reducing unemployment benefits. Show Answer Correct Answer: D) Reducing unemployment benefits. 25. A tax in which the tax rate increases as the taxable amount increases A) Progressive. B) Regressive. C) Flat. D) Proportional. Show Answer Correct Answer: A) Progressive. 26. The national income is A) GNP at factor cost. B) NNP at market price. C) GNP at market price. D) NNP at factor cost. Show Answer Correct Answer: D) NNP at factor cost. 27. The total of all planned expenditures in the entire economy A) Stagflation. B) Aggregate Supply. C) Inflation. D) Aggregate Demand. Show Answer Correct Answer: D) Aggregate Demand. 28. Contractionary or Expansionary?To recuperate from the economic recession, John Maynard Keynes moved the US government to spend more. What type of macroeconomic policy is being described in this case? A) Contractionary. B) Expansionary. Show Answer Correct Answer: B) Expansionary. 29. TRUE or FALSE:A motor vehicle manufactured in the United States but sold in Europe would represent an addition to the gross domestic product of the United States. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 30. Net Domestic Product (NDP) is Gross Domestics Products (GDP) adjusted by inflation. A) False. B) True. Show Answer Correct Answer: A) False. ← 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