This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 166 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 166 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. According to the short-run Phillips curve, if the central bank increases the money supply, then A) Inflation and unemployment will both fall. B) Inflation and unemployment will both rise. C) Inflation will fall and unemployment will rise. D) Inflation will rise and unemployment will fall. Show Answer Correct Answer: D) Inflation will rise and unemployment will fall. 2. The average years of education per person in Islandia increased by 3 years over the period 2010-2015.What determinant of productivity changed, and how would that impact Islandia's long-run aggregate supply curve (LRAS)? A) Human capital increased; LRAS shifts right. B) Labor increased; no impact on LRAS. C) Technology increased; no impact on LRAS. D) Technology increased; LRAS increased. E) Capital increased; LRAS increased. Show Answer Correct Answer: A) Human capital increased; LRAS shifts right. 3. What unemployment rates are the best? A) No unemployment rates are ideal. B) Low but not too low unemployment rates are ideal. C) High unemployment rates are ideal. D) None of above. Show Answer Correct Answer: B) Low but not too low unemployment rates are ideal. 4. GDP tends to underestimate the productive activity in the economy because it excludes the value of output from:Select one: A) Intermediate goods. B) The consumption of fixed capital. C) The underground economy. D) Public transfer payments to households. Show Answer Correct Answer: C) The underground economy. 5. How do government budget deficits impact the national debt? A) Government budget deficits increase the national debt. B) Government budget deficits only impact the state debt. C) Government budget deficits decrease the national debt. D) Government budget deficits do not impact either the state or national debt. Show Answer Correct Answer: A) Government budget deficits increase the national debt. 6. The assumption that prices are sticky means that prices A) Have to be attached to products. B) Do not change in a short run. C) Follow movements of demand and supply. D) None of above. Show Answer Correct Answer: B) Do not change in a short run. 7. What do you call a person who starts a business? Choose the best answer. A) Realtor. B) Investor. C) Entrepreneur. D) Economist. Show Answer Correct Answer: C) Entrepreneur. 8. Name a group that was badly effected by hyperinflation. A) Pensioners. B) Farmers. C) Big business owners. D) Landowners. Show Answer Correct Answer: A) Pensioners. 9. Two sector economy consists of: A) Firms, foreign sector. B) Households, government. C) Firms, government. D) Households, firms. Show Answer Correct Answer: D) Households, firms. 10. When a person keeps bees for their honey, but then their neighbor also benefits by having their fruit trees pollinated is an example of: A) Negative Externality. B) Positive Externality. C) An increase in Standard of Living. D) A decrease in Gross Domestic Product. Show Answer Correct Answer: B) Positive Externality. 11. Macroeconomics is also known as ..... A) Theory of price and output determination. B) Theory of income and employment. Show Answer Correct Answer: B) Theory of income and employment. 12. Which graph has the nominal interest rate on the y axis? A) Loanable Funds. B) Phillips Curve. C) Money Market. D) AD/AS Model. Show Answer Correct Answer: C) Money Market. 13. Which of the following purchases is included in the calculation of gross domestic product? A) New harvesting equipment for the farm. B) 1, 000 shares of stock in a computer firm. C) A car produced in a foreign country. D) A used economics textbook from the bookstore. Show Answer Correct Answer: A) New harvesting equipment for the farm. 14. Arizona's GDP is similar to A) Singapore. B) United Kingdom. C) China. D) South Africa. Show Answer Correct Answer: A) Singapore. 15. Changes in the price level of consumer goods results in ..... A) AS curve shifting left. B) A move along the AD curve. C) AD curve shifting left. D) AD curve shifting right. Show Answer Correct Answer: B) A move along the AD curve. 16. Unemployment measures ..... A) The value of all final goods and services produced. B) An increase in the general price level. C) The percentage of people looking for work that can't find it. D) The economic freedom an economy offers. Show Answer Correct Answer: C) The percentage of people looking for work that can't find it. 17. In general, when does a Monopoly become bad? A) When they drop prices of a good, which does not hurt consumers. B) When they raise the price of a good, which could hurt consumers. C) Only when they own over 95% of the market on a particular good or service. D) All of the above. Show Answer Correct Answer: B) When they raise the price of a good, which could hurt consumers. 18. Occurs in the federal government's budget when the tax revenue received for a given fiscal year is less than the amount of spending done by the government during that year. A) Deficit. B) National debt. C) Budget surplus. D) None of above. Show Answer Correct Answer: A) Deficit. 19. According to the quantity theory of money A) $M\times Y=V\times P$. B) $M\times V=P\times Y$. C) $M=P\times Y$. D) None of above. Show Answer Correct Answer: B) $M\times V=P\times Y$. 20. Which of the following IS NOT a monetary policy tool of the Federal Reserve? A) Required reserve ratio. B) Discount rate. C) Buying & selling US Securities. D) Decreasing government spending. Show Answer Correct Answer: D) Decreasing government spending. 21. Keynessian Economists argue that government should not intervene the market A) True. B) False. Show Answer Correct Answer: B) False. 22. What is the circular flow model? A) A model that shows the flow of goods and services in an economy. B) A model that shows the flow of money in an economy. C) A model that shows the flow of resources in an economy. D) A model that shows the flow of income in an economy. Show Answer Correct Answer: A) A model that shows the flow of goods and services in an economy. 23. The average propensity to consume is measured by A) Y/C. B) C+Y. C) CxY. D) C/Y. Show Answer Correct Answer: D) C/Y. 24. The circular flow model represents the establishment of market value for: A) Goods and services only. B) Wages and salaries excluding goods and services. C) Profits and rents but not for wages and salaries. D) Profits and rents as well as wages and salaries. Show Answer Correct Answer: D) Profits and rents as well as wages and salaries. 25. The quantity at which quantity demanded and quantity supplied are equal for a certain price level A) Demand. B) Equilibrium Price. C) Equilibrium Quantity. D) Demand Curve. Show Answer Correct Answer: C) Equilibrium Quantity. 26. A decrease in the price of silicon chips and increased production of user-friendly software will affect the price and quantity of computers in which of the following ways? A) Indeterminate Price; Increase Quantity. B) Increase Price; Indeterminate Quantity. C) Decrease Price; Decrease Quantity. D) Increase Price; Increase Quantity. Show Answer Correct Answer: A) Indeterminate Price; Increase Quantity. 27. If the nominal gross domestic product (GDP) of the nation of Hypothetica increased in 2007 relative to the previous year, it must be true that in Hypothetica in 2007 A) Both the price level and the real GDP have increased. B) Neither the price level nor the real GDP has increased. C) The price level increased by a larger percentage than did the real GDP. D) The price level increased by a smaller percentage than did the real GDP. E) The price level and/or the real GDP has increased. Show Answer Correct Answer: E) The price level and/or the real GDP has increased. 28. Of the following groups, the one hurt the LEAST by unanticipated inflation is A) Workers who have cost-of-living adjustments in their labor contracts. B) People who have saved money in accounts with a fixed interest rate. C) Banks that have made long term, fixed rate mortgage loans. D) Consumers who buy goods and services at prevailing market prices. Show Answer Correct Answer: A) Workers who have cost-of-living adjustments in their labor contracts. 29. Actions which are designed to influence the economic activities by controlling aggregate demand and money supply in the economy is known as ..... A) Fiscal policy. B) Socio-economic policy. C) Economic policy. D) Monetary policy. Show Answer Correct Answer: C) Economic policy. 30. The export can food is the macroeconomics A) True. B) False. Show Answer Correct Answer: A) 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