This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 167 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 167 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Government cutting taxes is an example of ..... A) Monetary Policy. B) Fiscal Policy. Show Answer Correct Answer: B) Fiscal Policy. 2. Under a fixed exchange rate system (A) ..... would be an exogenous monetary policy instrument, whereas under a flexible exchange rate system (B) ..... would be an endogenous monetary policy instrument. A) (A) the interest rate; (B) the exchange rate. B) (A) the exchange rate; (B) the interest rate. C) (A) the interest rate; (B) the interest rate. D) (A) the exchange rate; (B) the exchange rate. Show Answer Correct Answer: D) (A) the exchange rate; (B) the exchange rate. 3. Assume that the reserve requirement is 25 percent. If banks have excess reserves of $ 10, 000, which of the following is the maximum amount of additional money that can be created by the banking system through the lending process? A) $ 40, 000. B) $ 10, 000. C) $ 50, 000. D) $ 250, 000 . E) $ 2, 500. Show Answer Correct Answer: A) $ 40, 000. 4. A competitive market is in Equilibrium when the price has moved to a level at which the quantity demanded of a good is more than the quantity supplied of that good. A) False. B) True. Show Answer Correct Answer: A) False. 5. Jack saves his money in a piggy bank. He is using money as a A) Bartering tool. B) Store of value. C) Unit of measurement. D) Medium of exchange. Show Answer Correct Answer: B) Store of value. 6. What is the recovery/expansion in the business cycle? A) The lowest point of Real GDP. B) The accumulation of government deficits over the years. C) The period of rising Real GDP. D) The highest point of Real GDP. Show Answer Correct Answer: C) The period of rising Real GDP. 7. What is the difference between GDP and GNP? A) GNP measures value of all the goods produced within a country's borders, while GDP measures value of all the goods made by a country's citizens. B) Finding GDP is more complex than finding GNP. C) GDP measures value of all the goods produced within a country's borders, while GNP measures value of all the goods made by a country's citizens. D) None of above. Show Answer Correct Answer: C) GDP measures value of all the goods produced within a country's borders, while GNP measures value of all the goods made by a country's citizens. 8. Too much demand can lead to A) Unemployment. B) Deflation. C) Inflation. D) Increase output. Show Answer Correct Answer: C) Inflation. 9. Which inflation type is influenced by a surge in consumer demand? A) Cost push inflation. B) Demand pull inflation. C) Stagflation. D) Hyperinflation. Show Answer Correct Answer: B) Demand pull inflation. 10. Cutting or increasing taxes is an example of ..... A) Monetary policy. B) Fiscal policy. C) F. D) None of above. Show Answer Correct Answer: B) Fiscal policy. 11. Unlike ....., which defines production based on the geographical location of production, the ..... allocates production based on location of ownership. A) GDP-GNP. B) GNP-GDP. C) Macroeconomics-Microeconomics. D) Microeconomics-Macroeconomics. Show Answer Correct Answer: A) GDP-GNP. 12. The law of one price applied to the international marketplace is called ..... A) Big mac index. B) Semua salah. C) Arbitrageurs. D) Purchasing-power parity. Show Answer Correct Answer: D) Purchasing-power parity. 13. This is a paper component of the money supply, today consisting of Federal Reserve notes. A) Coins. B) Currency. C) Both coins and currency. D) Debit cards. Show Answer Correct Answer: B) Currency. 14. The act of buyers and sellers freely & willingly engaging in market transactions A) Specialization. B) Scarcity. C) Opportunity Cost. D) Voluntary Exchange. Show Answer Correct Answer: D) Voluntary Exchange. 15. An Aggregate Production Function exhibits ..... when, holding the amount of human capital per worker and the state of technology fixed, each successive increase in the amount of physical capital per worker leads to a smaller increase in productivity. A) Increasing Returns to Physical Capital. B) Increasing Returns to Human Capital. C) Diminishing Returns to Human Capital. D) Diminishing Returns to Physical Capital. Show Answer Correct Answer: D) Diminishing Returns to Physical Capital. 16. National debt from internal sources are loans obtained from A) International monetary funds. B) Loans approved for overseas projects by the world bank. C) Sale of government securities in the international financial markets. D) Investment certificates and government securities to the employees. Show Answer Correct Answer: D) Investment certificates and government securities to the employees. 17. The three methods for calculating GDP are ..... A) The spending approach, the investment approach, and the product approach. B) The spending approach, the imputation approach, and the investment approach. C) The spending approach, the income approach, and the investment approach. D) The spending approach, the imputation approach, and the product approach. E) The spending approach, the income approach, and the product approach. Show Answer Correct Answer: E) The spending approach, the income approach, and the product approach. 18. In a small open economy, a decrease in its exchange rate will ..... net exports and shift the ..... curve. A) Decrease; LM. B) Increase; LM. C) Decrease; IS. D) Increase; IS. Show Answer Correct Answer: D) Increase; IS. 19. According to the liquidity preference model, if the interest rate rises above its equilibrium value, the quantity demanded of nonmonetary interest-bearing financial assets ..... and this leads to a ..... in the interest rate. A) Increases; fall. B) Decreases; rise. C) Decreases; fall. D) Increases; rise. E) Remains constant; fall. Show Answer Correct Answer: A) Increases; fall. 20. If the Federal Government spends more money than it collects in tax revenue during a given year, than the Federal Government has a ..... ? ..... for that year? A) Budget surplus. B) National debt. C) Deficit. D) None of above. Show Answer Correct Answer: C) Deficit. 21. ..... is the total value of all final goods and services produced in the economy during a given year. A) Economic Success Value. B) Value-Added Number. C) Consumer Spending. D) Gross Domestic Product. Show Answer Correct Answer: D) Gross Domestic Product. 22. The aggregate production function is used to describe which of the following relationships? A) The tradeoff between the production of capital goods and consumption goods. B) The relationship between output supplied and the price level. C) The relationship between unemployment and inflation in the long run. D) The tradeoff between unemployment and inflation in the short run. E) The relationship between output and inputs (labor, capital, and technology). Show Answer Correct Answer: E) The relationship between output and inputs (labor, capital, and technology). 23. All of these are components of the expenditure approach to GDP EXCEPT A) Consumption. B) Government Spending. C) Investment. D) Taxes. Show Answer Correct Answer: D) Taxes. 24. In the Keynesian model, an expansionary monetary policy will lead to A) Lower real interest rates and more investment. B) Lower real interest rates and lower prices. C) Higher real interest rates and lower prices. D) Higher real interest rates and higher real income. E) Higher nominal interest rates and more investment. Show Answer Correct Answer: A) Lower real interest rates and more investment. 25. Circular flow of income depends on ..... A) Govt. Intervention. B) Production of goods and services. C) Interdependence of producer and household sector. D) Invention of money. Show Answer Correct Answer: C) Interdependence of producer and household sector. 26. The following are the indices that are the basis for determining the size of the price level according to macroeconomics, except..... A) Deflator PDB. B) Consumer price index. C) CPI. D) The Inflation Rate. Show Answer Correct Answer: D) The Inflation Rate. 27. Which graph shows tradeoffs amid conditions of scarce resources? A) Phillips Curve. B) Production Possibilities. C) Money Market. D) Loanable Funds. Show Answer Correct Answer: B) Production Possibilities. 28. What is seignorage? A) The right of the US government to print money. B) The right of the US government to tax businesses. C) The right of the US government to less treasury bonds. D) The right of the US government to tax its citizens. Show Answer Correct Answer: A) The right of the US government to print money. 29. Which group of economic indicators suggests an economy is in a trough? A) Growth 2.1%, Inflation 1.7%, Unemployment 6.2%. B) Growth 4.5%, Inflation 3.6%, Unemployment 4.8%. C) Growth 1.8%, Inflation 2.2%, Unemployment 5.6%. D) Growth 3%, Inflation 2.8%, Unemployment 5.1%. Show Answer Correct Answer: A) Growth 2.1%, Inflation 1.7%, Unemployment 6.2%. 30. The ..... represents the negative short-run relationship between the unemployment rate and the inflation rate. A) Short-Run Phillips Curve. B) Long-Run Phillips Curve. C) Short-Run Aggregate Supply. D) Short-Run Aggregate Demand. Show Answer Correct Answer: A) Short-Run Phillips Curve. ← 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