This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 172 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 172 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Exists when the amount of income received exceeds the amount of expenses paid A) Budget surplus. B) Budget deficit. Show Answer Correct Answer: A) Budget surplus. 2. The long-run Phillips curve illustrates which of the following? A) A positive relationship between unemployment and inflation. B) A negative relationship between unemployment and inflation. C) That unemployment will always return to the NAIRU. D) That unemployment will adjust so that the economy experiences 2% inflation. E) That output will adjust so that there is no unemployment or inflation in the long run. Show Answer Correct Answer: C) That unemployment will always return to the NAIRU. 3. The county charges the Henry family a tax on the value of the house they own. What kind of tax is this? A) Payroll. B) Property. C) Sales. D) Income. Show Answer Correct Answer: B) Property. 4. Budget deficits cause the government to borrow money, which adds to government ..... A) Barter. B) Currency. C) Debt. D) None of above. Show Answer Correct Answer: C) Debt. 5. When Carly, a college Biology professor, leaves her job at a small rural college and starts looking for a job at a large urban university she is A) Frictionally Unemployed. B) Structurally Unemployed. C) Cyclically Unemployed. D) A discouraged worker. Show Answer Correct Answer: A) Frictionally Unemployed. 6. A supply shock which reduces aggregate supply A) May increase the level of equilibrium output as it raises the price level. B) May lower the price level and the level of equilibrium output. C) May reduce the equilibrium output as it raises the price level. D) Is represented by shifting the aggregate supply curve downward. Show Answer Correct Answer: C) May reduce the equilibrium output as it raises the price level. 7. Which of the following is used to measure inflation from year to year? A) Consumer Peace Index. B) Consumer Price Index. C) Supply & Demand. D) Market Value of Homes. Show Answer Correct Answer: B) Consumer Price Index. 8. Rising unemployment will have an impact ..... on the equity market. A) Positif. B) Negative. C) Constant. D) All three are correct. Show Answer Correct Answer: B) Negative. 9. Which of the following terms refers to the average increase of prices across an economy in a given month or year? A) Deflation. B) Hyperinflation. C) Inflation. D) Unemployment. Show Answer Correct Answer: C) Inflation. 10. The balanced budget multiplier ..... A) Requires a specific MPC value to calculate. B) Is always greater than 1.0. C) Is not accurately described by any of the other answers. D) Assumes that government spending exceeds tax revenues. Show Answer Correct Answer: C) Is not accurately described by any of the other answers. 11. In a recession, appropriate monetary policy would tend to be for the Fed to ..... bonds to ..... AD. A) Buy; decrease. B) Sell; increase. C) Sell; decrease. D) Buy; increase. Show Answer Correct Answer: D) Buy; increase. 12. A fall in price cause a ..... in AS. A) Expansion. B) Contraction. C) Increase. D) None of the options. Show Answer Correct Answer: B) Contraction. 13. *moderate deflation will NOT A) Lower the nominal interest rate. B) Reduce the cost of holding money. C) Increase the cost of holding money. D) None above. Show Answer Correct Answer: C) Increase the cost of holding money. 14. The problem of unlimited desires and limited resources is the problem of A) Scarcity. B) Wants. C) Free enterprise. D) Marginal benefit. Show Answer Correct Answer: A) Scarcity. 15. If price level increase, the LM curve will ..... A) Shift up. B) Shift down. C) Shift to the left. D) Shift to the right. Show Answer Correct Answer: C) Shift to the left. 16. How are prices determined in a free market? A) By supply and demand. B) By government regulations. C) By producer preferences. D) By social factors. Show Answer Correct Answer: A) By supply and demand. 17. The ability to produce a good or service at a lower opportunity cost than another country A) Comparative advantage. B) Specialization. C) Absolute advantage. D) Dependent. Show Answer Correct Answer: A) Comparative advantage. 18. The Federal Reserve manages which of the following? A) Inflation. B) Monetary Policy. C) Gross Domestic Product. D) Deficit. E) Fiscal Policy. Show Answer Correct Answer: B) Monetary Policy. 19. The labour force participation rate is A) The percentage of people in the labour force who are employed and unemployed but seeking work. B) The percentage of people above 15 that are employed and unemployed but seeking work. C) The total number of unemployed persons. D) The percentage of people in the labour force who are unemployed but seeking work. E) The total number of unemployed and employed persons. Show Answer Correct Answer: B) The percentage of people above 15 that are employed and unemployed but seeking work. 20. The Fed uses monetary policy to? A) Prevent major changes in the business cycle. B) Quickly raise interest rates to slow down the economy. C) Quickly lower interest rates to speed up the economy. D) All of the above. Show Answer Correct Answer: D) All of the above. 21. Incentive is one of the factors affecting ..... A) AD CURVE. B) AS CURVE. Show Answer Correct Answer: B) AS CURVE. 22. A general increase in prices across an economy. A) Gross Domestic Product. B) Inflation. C) Consumer Price Index. D) Unemployment. Show Answer Correct Answer: B) Inflation. 23. What of the following is NOT consider by the GDP. A) Earnings of residents or production outside the country. B) The value of the total goods and services produced. C) Government expenditure. D) National or International Investment. Show Answer Correct Answer: A) Earnings of residents or production outside the country. 24. The Federal government is concerned that economic growth is too high, that it is unsustainable, and that inflation is resulting. Which of the following fiscal policies might be enacted to reduce inflation? A) Decreasing taxation. B) Increasing government spending. C) Open market sales. D) Increasing taxation. Show Answer Correct Answer: D) Increasing taxation. 25. Joel is an economist who wants to measure the health of the nation's economy based on the average standard of living. Which would be the most useful economic indicator that Joel could use? A) GDP. B) Per capital GDP. Show Answer Correct Answer: B) Per capital GDP. 26. The questions included in macro analysis are as follows, except..... A) Why does every country face the problem of unemployment?. B) Why do prices always go up?. C) How are these goods and services produced?. D) Why is economic activity not experiencing stable development?. E) Why is the economy not experiencing the same rapid growth?. Show Answer Correct Answer: C) How are these goods and services produced?. 27. The price at which supply and demand are balanced A) Supply Price. B) Demand Price. C) Equilibrium Price. D) Sale Price. Show Answer Correct Answer: C) Equilibrium Price. 28. Over time economies tend not to change. A) True. B) False. Show Answer Correct Answer: B) False. 29. Refrigerator purchased by a confectionery shop is an example of A) Final good. B) Intermediate good. C) None. D) Capital good. Show Answer Correct Answer: D) Capital good. 30. Over the last year, Eli has been working very hard and his employer has taken notice by giving him a 6% raise in his salary. During this last year, overall prices in the economy have increased by 4%. Given this information, Eli's real wage has: A) Increased by 10%. B) Increased by 2%. C) Decreased by 4%. D) Stayed constant. Show Answer Correct Answer: B) Increased by 2%. ← 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