This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 138 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 138 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The introduction of MP3 players made tape recorders obsolete. To the extent this caused higher unemployment among workers who had manufactured audio tapes, which type of unemployment was created? A) Underemployment. B) Frictional unemployment. C) Efficiency unemployment. D) Structural unemployment. E) Cyclical unemployment. Show Answer Correct Answer: D) Structural unemployment. 2. Finding the amount of Gross Domestic Product produced at all possible levels will determine A) Inflation. B) Growth. C) Aggregate demand. D) Aggregate supply. Show Answer Correct Answer: D) Aggregate supply. 3. Which of the following can lead to an increase in Aggregate Demand? A) Increase in taxes. B) Decrease in imports. C) Increase in consumer spending. D) Decrease in government spending. Show Answer Correct Answer: C) Increase in consumer spending. 4. The expenditure multiplier is A) 1/mpc. B) 1/(1-MPC). C) (1-mpc)/1. D) None of above. Show Answer Correct Answer: B) 1/(1-MPC). 5. A country's standard of living depend on its ability to produce goods and services A) True. B) False. Show Answer Correct Answer: A) True. 6. What are some limitations of CPI? A) It does not take into account changes in quality of goods and services. B) It measures the cost of living but not inflation. C) It is based on a basket of goods and services that is not representative of all households. D) None of above. Show Answer Correct Answer: B) It measures the cost of living but not inflation. 7. ..... is the use of changes in the interest rate or the money supply by the central bank to stabilize the economy. A) Macroeconomic Policy Activism. B) Political Business Cycle. C) Monetary Policy Rule. D) Discretionary Monetary Policy. Show Answer Correct Answer: D) Discretionary Monetary Policy. 8. The long run aggregate supply curve is vertical because ..... A) GDP decreases but price level doesn't. B) Price level decreases but GDP doesn't. C) Price level increases but GDP doesn't. D) GDP increases but price level doesn't. Show Answer Correct Answer: C) Price level increases but GDP doesn't. 9. If an economy is currently experiencing a contraction or a recession, which stage of the business cycle will they experience next? A) Trough. B) Cyclical. C) Expansion. D) Peak. Show Answer Correct Answer: A) Trough. 10. True or False.When the Gini coefficient of a country is 0 it means that only one entity owns the economy's wealth. A) True. B) False. Show Answer Correct Answer: B) False. 11. Commercial bank are primary financial depositary institution where the government will keep their money A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 12. The situation of workers between jobs is called A) Seasonal unemployment. B) Cyclical unemployment. C) Structural unemployment. D) Frictional unemployment. Show Answer Correct Answer: D) Frictional unemployment. 13. Lauren coaches softball and gets paid in cash each week. Is this included in GDP? A) Yes-Consumer Spending. B) Yes-Investment. C) No-Purely financial transaction. D) No-Underground Economy. Show Answer Correct Answer: D) No-Underground Economy. 14. Iceberg & romaine are two different types of lettuce. For most consumers, iceberg and romaine are A) Complements. B) Resources. C) Substitutes. D) Inferior goods. Show Answer Correct Answer: C) Substitutes. 15. The COVID crisis has led to A) Lower government spending on benefits. B) Lower unemployment. C) No change to country's economies. D) Most countries entering into the trough stage of the trade cycle. Show Answer Correct Answer: D) Most countries entering into the trough stage of the trade cycle. 16. A general, sustained upward movement of prices for goods and services in an economy. A) Market Basket. B) Inflation. C) Purchasing Power. D) Interest. Show Answer Correct Answer: B) Inflation. 17. Monetary policy in the United States is the responsibility of the: A) U.S. Treasury. B) Federal Reserve. C) Internal Revenue Service. D) Office of Management and Budget. Show Answer Correct Answer: B) Federal Reserve. 18. This is a measure of how much the GDP of an economy changes from one year to the next. A) Gross Domestic Product (GDP). B) GDP Annual Growth Rate. C) Aggregate. D) Unemployment Rate. E) Inflation Rate. Show Answer Correct Answer: B) GDP Annual Growth Rate. 19. What must occur before the LRAS curve will shift to the right? A) SRAS curve shifts to the left. B) AD curve shifts to the left. C) SRAS curve shifts to the right. D) AD Curve shifts to the right. Show Answer Correct Answer: C) SRAS curve shifts to the right. 20. According to the quantity theory of money and the Fisher effect, if the central bank increases the rate of money growth, A) Inflation and the nominal interest rate both increase. B) Inflation and the real interest rate both increase. C) The nominal interest rate and the real interest rate both increase. D) Inflation, the real interest rate, and the nominal interest rate all increase. Show Answer Correct Answer: A) Inflation and the nominal interest rate both increase. 21. To be certain that a country is producing more from year to year, economists look to see that ..... has ..... A) GDP; decreased. B) Real GDP; decreased. C) GDP; increased. D) Real GDP; increased. Show Answer Correct Answer: D) Real GDP; increased. 22. Which of the following is an example of contractionary monetary policy? A) Decreasing taxes. B) Lowering the reserve requirement. C) Lowering the discount rate. D) Selling Treasury securities. E) Increasing government spending. Show Answer Correct Answer: D) Selling Treasury securities. 23. . Under what general macroeconomic circumstances might a government use expansionary fiscal policy? A) A government might use expansionary fiscal policy during a recession or economic downturn to stimulate economic growth and increase aggregate demand. B) During a period of economic stability to maintain the status quo. C) During a period of high inflation to reduce consumer spending. D) During a period of high unemployment to decrease government spending. Show Answer Correct Answer: A) A government might use expansionary fiscal policy during a recession or economic downturn to stimulate economic growth and increase aggregate demand. 24. What is meant by Discount Rate is: A) The loan interest rate determined by commercial banks for borrower customers. B) The interest rate on loans determined by commercial banks to the central bank. C) The loan interest rate determined by the central bank to commercial banks. D) All of the above is wrong. Show Answer Correct Answer: C) The loan interest rate determined by the central bank to commercial banks. 25. What is the commitment to the value of work and purposeful activity called? A) American Dream. B) Technological progress. C) American Work Ethic. D) Improved productivity. Show Answer Correct Answer: C) American Work Ethic. 26. A donut shop sells fresh baked donuts from 5 a.m. until 3 p.m. every day but Sunday. The cost of making and selling a dozen glazed donuts is $ 1.00. Since this shop does not sell day-old donuts the next day, what should the manager do if he still has 10 dozen left at 2:30 p.m. A) Lower the price of the remaining donuts even if the price falls below $ 1.00. B) Lower the price of the remaining donuts as long as it's more than $ 1.00. C) Lower the price on all donuts so they will all be sold earlier in the day. D) Throw them away and produce 10 fewer dozen tomorrow. Show Answer Correct Answer: A) Lower the price of the remaining donuts even if the price falls below $ 1.00. 27. Which of the following accounts for the biggest portion of GDP in the United States? A) Business Investment. B) Government Spending. C) Consumption. D) Net Exports. Show Answer Correct Answer: C) Consumption. 28. Which of the following statements about business is incorrect? A) A system where goods are manufactured and distributed free of cost. B) An organisation where people work for meeting their own needs. C) An institution which prepares people for future challenges. D) All of these. Show Answer Correct Answer: D) All of these. 29. When the government uses revenue and spending to manipulate the economy A) Fiscal Policy. B) Monetary Policy. C) Tax Exempt. D) Fiscal Year. Show Answer Correct Answer: A) Fiscal Policy. 30. What was created to protect bank deposits up to $ 5, 000 (and now protects up to $ 250, 000)? A) FDIC. B) TVA. C) WPA. D) CCC. Show Answer Correct Answer: A) FDIC. ← 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