This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 154 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 154 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A continuous increase in the consumer price index is A) Recession. B) Stagflation. C) Inflation. D) Deflation. E) Disinflation. Show Answer Correct Answer: C) Inflation. 2. Which is NOT a macroeconomic goal? A) Increased money supply. B) Full employment. C) Steady economic growth. D) Price stability. Show Answer Correct Answer: A) Increased money supply. 3. An index that measures the prices of a 'basket' of goods that typical consumers purchase. A) Deflation. B) National Bank. C) Consumer Price Index. D) Government Index. Show Answer Correct Answer: C) Consumer Price Index. 4. The interest rate the Fed charges commercial banks for loans A) I.O.U Rate. B) Discount Rate. C) Reserve Requirement Rate. D) Fed Fund Rate. Show Answer Correct Answer: B) Discount Rate. 5. According to Tobin's theory of the asset demand for money, an increase in uncertainty concerning bond prices would be expected to cause the demand for A) Money to fall and the demand for bonds to rise. B) Bonds to fall and the demand for money to rise. C) Both money and bonds to rise. D) Both money and bonds to fall. Show Answer Correct Answer: B) Bonds to fall and the demand for money to rise. 6. Microeconomics deals with A) Economy as a whole. B) Individual. C) None of these. D) Both economy as whole and individual. Show Answer Correct Answer: B) Individual. 7. A period in which real output falls during a business cycle is referred to as a(n) ....., and would be represented in the graph by a movement from ..... A) Recession; point A to point B. B) Recession:point B to point D. C) Expansion; point A to point B. D) Expansion; point B to point D. Show Answer Correct Answer: B) Recession:point B to point D. 8. Which of the following choices would be a factor that contributes to a nation's rapid long-run economic growth? A) Faster population growth. B) Less physical capital per worker. C) Lower levels of average human capital. D) Faster technological progress. E) Higher tax rates on high-tech industries. Show Answer Correct Answer: D) Faster technological progress. 9. When deviations above and below the target are given equal weight in the inflation target A) Unbalanced inflation target. B) Asymmetric inflation target. C) Symmetric inflation target. D) Balanced inflation target. Show Answer Correct Answer: C) Symmetric inflation target. 10. How many members are there in the FOMC? A) 13. B) 11. C) 7. D) 12. Show Answer Correct Answer: D) 12. 11. In the past 12 months, Mia has made 4 late payments on her credit card. How will this affect her credit score? A) Her score will go up. B) Her credit score will go down. C) Her score will stay the same. D) She will likely get more credit card offers. Show Answer Correct Answer: B) Her credit score will go down. 12. Fiscal policy is created and implemented by A) Congress and the President. B) The Federal Reserve. Show Answer Correct Answer: A) Congress and the President. 13. Housing is a normal good. If average salary increases, what can we expect to happen in the housing market? A) Rightward shift in supply. B) Leftward shift in supply. C) Rightward shift in demand. D) Leftward shift in demand. Show Answer Correct Answer: C) Rightward shift in demand. 14. In order to have a farm, which factor of production do you need (at least to start)? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: A) Land. 15. The percentage that a lender charges a borrower in exchange for a loan. A) Deflation. B) Inflation. C) Real GDP. D) Interest rate. Show Answer Correct Answer: D) Interest rate. 16. Strikes, Pickets, and Boycotts are all ways in which whom makes their demands met? A) Unions. B) Employers. C) Capital. D) The President. Show Answer Correct Answer: A) Unions. 17. Which of the following individuals is classified as unemployed? A) A fifteen-year-old high school student who is looking for a babysitting job. B) A laid-off computer programmer who has given up looking for a new job. C) A parent who works in an after-school day care center for 15 hours a week. D) A recent college graduate who is looking for her first job. E) A mayor who lost an election and retired. Show Answer Correct Answer: D) A recent college graduate who is looking for her first job. 18. According to the classical macroeconomic model, an increase in the money supply will result in an increase in which of the following in the long run? A) Real gross domestic product. B) Employment. C) Real wages. D) Unemployment. E) Nominal gross domestic product. Show Answer Correct Answer: E) Nominal gross domestic product. 19. An expansionary monetary policy will be most effective in increasing real output if A) Investment spending is sensitive to changes in interest rates. B) Money demand is sensitive to changes in interest rates. C) Wages and prices are perfectly flexible. D) Corporate income tax rates increase. E) Complete crowding-out occurs. Show Answer Correct Answer: A) Investment spending is sensitive to changes in interest rates. 20. Which of the following variables is not included in the Europe 2020 indicator set? A) Employment rate. B) Gross domestic expenditure on Research and Development. C) Subjective wellbeing. D) People at risk of poverty or social exclusion. E) Greenhouse gas emission. Show Answer Correct Answer: C) Subjective wellbeing. 21. Someone in between jobs A) Fully Employed. B) Discouraged Workers. C) Structural Unemployment. D) Frictional Unemployment. Show Answer Correct Answer: D) Frictional Unemployment. 22. The federal government's overall approach to spending and taxes is called A) Physical Policy. B) Fiscal Policy. C) Money. D) Monetary Policy. Show Answer Correct Answer: B) Fiscal Policy. 23. What is the role of government in stabilizing the economy? A) The government has no role in stabilizing the economy. B) The government plays a key role in stabilizing the economy through fiscal and monetary policies. C) The government only focuses on stabilizing the stock market. D) The government relies on individual decision making to stabilize the economy. Show Answer Correct Answer: B) The government plays a key role in stabilizing the economy through fiscal and monetary policies. 24. An important economic indicator that shows the sum (total value) of all final goods and services produced in an economy. A) Deflation. B) Inflation. C) Full Employment. D) Gross Domestic Product. Show Answer Correct Answer: D) Gross Domestic Product. 25. What is not involved in the construction of a retail price index? A) The weighting of products. B) A base year. C) The income tax rate. D) A basket of goods. Show Answer Correct Answer: C) The income tax rate. 26. If an economy experiences a dramatic rise in prices, which fiscal policy action could be taken? A) Selling securities on the open market. B) Reducing government spending. C) Raising reserve requirements. D) Raising interest rates. Show Answer Correct Answer: B) Reducing government spending. 27. External Trade in intangible services and software is recorded under which account in Balance of Payments in India? A) Capital Account. B) Invisible Account. C) Trade Account. D) Financial Account. Show Answer Correct Answer: B) Invisible Account. 28. What is the relationship between GDP and standard of living? A) GDP and standard of living are directly proportional. B) GDP and standard of living are inversely proportional. C) GDP has no impact on standard of living. D) Standard of living has no impact on GDP. Show Answer Correct Answer: A) GDP and standard of living are directly proportional. 29. What is the consequence when foreign income increases? A) Increase in foreign demand by foreign residents. B) Increase in domestic demand by foreign residents. C) Increase in foreign demand by domestic residents. D) Increase in domestic demand by domestic residents. Show Answer Correct Answer: B) Increase in domestic demand by foreign residents. 30. Which of the following would cause the supply of labour to increase? A) Better provision of child-care for very young children. B) Raising the school leaving age. C) Stricter controls on immigration. D) Lowering the retirement age. Show Answer Correct Answer: A) Better provision of child-care for very young children. ← 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