This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 118 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 118 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The shape of long run Philips curve is A) Downward sloping to the right. B) Upward sloping to the right. C) Vertical. D) Horizontal. Show Answer Correct Answer: C) Vertical. 2. Discuss the effects of inflation on the economy. A) Inflation leads to higher wages and increased purchasing power. B) Inflation only affects the prices of consumer goods. C) Inflation can have several effects on the economy. D) Inflation has no effect on the economy. Show Answer Correct Answer: C) Inflation can have several effects on the economy. 3. What affects net exports? A) Real exchange rate. B) Nominal interest rate. C) Real interest rate. D) Nominal exchange rate. Show Answer Correct Answer: A) Real exchange rate. 4. To counteract a recession, the Federal Reserve could A) Buy government securities on the open market and raise the reserve requirement. B) Buy government securities on the open market and lower the reserve requirement. C) Buy government securities on the open market and raise the discount rate. D) Sell government securities on the open market and raise the discount rate. E) Raise the reserve requirement and lower the discount rate. Show Answer Correct Answer: B) Buy government securities on the open market and lower the reserve requirement. 5. Which of the following is not a tool of FISCAL policy? A) Taxing. B) Spending. C) Interest Rates. D) None of above. Show Answer Correct Answer: C) Interest Rates. 6. . Have the spending and taxes of the U.S. federal government generally had an upward or a downward trend in the last few decades? A) The spending of the U.S. federal government has increased, but taxes have decreased. B) The spending and taxes of the U.S. federal government have generally had an upward trend in the last few decades. C) The spending of the U.S. federal government has decreased, but taxes have increased. D) The spending and taxes of the U.S. federal government have generally had a downward trend in the last few decades. Show Answer Correct Answer: B) The spending and taxes of the U.S. federal government have generally had an upward trend in the last few decades. 7. An increase in expected inflation has what effect on the short-run Phillips curve? A) A movement up and to the left along the curve. B) A movement down and to the right along the curve. C) An upward shift of the curve. D) A downward shift of the curve. E) An increase in the slope of the curve. Show Answer Correct Answer: C) An upward shift of the curve. 8. Which of the following does not cause the aggregate demand curve to shift to the left? A) A decrease in net exports. B) A decrease in government spending. C) A decrease in taxes. D) A decrease in the money supply. Show Answer Correct Answer: C) A decrease in taxes. 9. Which of the following do homeowners pay based on the value of the residence? A) Individual income taxes. B) Property taxes. C) General sales taxes. D) Corporate taxes. Show Answer Correct Answer: B) Property taxes. 10. To slow the economy down the government can ..... A) Tax less. B) Spend less. C) Spend more. D) Tax more. Show Answer Correct Answer: B) Spend less. 11. A rise in price expectations that causes wages to rise causes the short-run aggregate-supply curve to shift left A) True. B) False. Show Answer Correct Answer: A) True. 12. Measure of change in price over a period of time. A) Gross Domestic Product (GDP). B) Producer Price Index (PPI). C) Gross National Product (GNP). D) Consumer Price Index (CPI). Show Answer Correct Answer: D) Consumer Price Index (CPI). 13. What is the difference between microeconomics and macroeconomics? A) Microeconomics focuses on individual economic agents, while macroeconomics studies the economy as a whole. B) Microeconomics studies the economy as a whole, while macroeconomics focuses on individual economic agents. C) Microeconomics and macroeconomics are the same thing. D) There is no difference between microeconomics and macroeconomics. Show Answer Correct Answer: A) Microeconomics focuses on individual economic agents, while macroeconomics studies the economy as a whole. 14. What would happen if expansionary fiscal policy was implemented in a recession but, due to lag, did not actually take effect until after the economy was back to potential GDP? A) It would result in a decrease in government spending. B) It would lead to increased unemployment. C) It would cause a decrease in interest rates. D) It could lead to inflationary pressures. . Show Answer Correct Answer: D) It could lead to inflationary pressures. . 15. If Y = 200, C =100, I =30, G=40 and M =30, what is the value of exports? A) 60. B) 40. C) 50. D) 90. Show Answer Correct Answer: A) 60. 16. Who or what answers the basic economic questions in a mixed economy? A) Individuals and Businesses. B) Government. C) Custom. D) Individuals, Businesses, and Government. Show Answer Correct Answer: D) Individuals, Businesses, and Government. 17. ..... is a system which provides people, the means to work and earn a living. A) Economics. B) Economy. C) Demand. D) Scarcity. Show Answer Correct Answer: B) Economy. 18. Which of the following is the consumption function propounded by Keynes? A) C=a+bY. B) C= bY. C) C= Y-S. D) None of these. Show Answer Correct Answer: A) C=a+bY. 19. A movement along a PP curve would imply that A) Society has chosen a different production point. B) Productivity has increased. C) The labor force has grown. D) Inefficiency has increased. Show Answer Correct Answer: A) Society has chosen a different production point. 20. Which of the following is the best measure of the production or output of an economy? A) Unemployment rate. B) Consumer price index. C) GDP deflator. D) Gross domestic product. Show Answer Correct Answer: D) Gross domestic product. 21. Why is it unsustainable to have Economic Growth above 4.5% A) It leads to large increases in Inflation. B) It leads to large increases in Unemployment. C) It leads to large increases in Real GDP. D) It leads to large increases in the Gini Coeffient. Show Answer Correct Answer: A) It leads to large increases in Inflation. 22. ..... operating expenses of a business (building) A) Fixed costs. B) Producer surplus. C) Variable costs. D) Economic utility. Show Answer Correct Answer: A) Fixed costs. 23. The relationship between prices and overall demand for goods and services in an economy is A) Positive. B) Negative. Show Answer Correct Answer: B) Negative. 24. An abstract measure of the satisfaction that a consumer receives from a bundle of goods and services A) Producer surplus. B) Variable costs. C) Fixed costs. D) Economic utility. Show Answer Correct Answer: D) Economic utility. 25. That part of personal income which is actually available to households for consumption and saving is called ..... A) National Disposable Income. B) Personal Disposable Income. C) Personal Income. D) None. Show Answer Correct Answer: B) Personal Disposable Income. 26. Expansion of the economy to produce more goods, jobs, and wealth A) Gross Domestic Product. B) Economic Growth. C) Unemployment Rate. D) Consumer Price Index. Show Answer Correct Answer: B) Economic Growth. 27. Which of the following is a stage of the business cycle? A) Procession. B) Trough. C) Slide. D) Valley. Show Answer Correct Answer: B) Trough. 28. Economic growth would result from technological advances or increases in the resources available or ..... A) Reduced rates of employment outsourcing. B) The federal budget deficit. C) Aggregate demand. D) An increase in the country's terms of trade. Show Answer Correct Answer: D) An increase in the country's terms of trade. 29. The long run framework of macroeconomics is focus on supply. A) True. B) False. Show Answer Correct Answer: A) True. 30. Unemployment is a waste of resources because the economy gives up the goods and services that unemployed workers could have produced if they had been working. A) False. B) True. Show Answer Correct Answer: B) True. ← 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