This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 39 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Aggregate supply is the total amount: A) Of labour supplied by all households. B) Of products produced by a given industry. C) Produced by the government. D) Of goods and services produced in an economy. Show Answer Correct Answer: D) Of goods and services produced in an economy. 2. Other things being equal, which of the following would tend to shift an economy's PPC to the left? A) The discovery of a low-cost means of generating and storing solar energy. B) The entrance of more women into the labor force. C) A federal law requiring mandatory retirement from the labor force at age 55. D) A decrease in the proportion of total current output that is allocated to the production of capital goods. Show Answer Correct Answer: C) A federal law requiring mandatory retirement from the labor force at age 55. 3. In the short run, a decrease in the money supply will ..... prices and ..... real GDP A) Increase, decrease. B) Decrease, decrease. C) Increase, increase. D) Decrease, increase. Show Answer Correct Answer: B) Decrease, decrease. 4. According to the Mundell-Fleming model for a small open economy with flexible exchange rates, if the Federal Reserve cannot alter domestic interest rates, changes in the money supply could still influence aggregate income through changes in the: A) Exchange rate. B) Level of government spending. C) Tax rates. D) Price level. Show Answer Correct Answer: A) Exchange rate. 5. GDP can be raised by ..... A) Investment in new machinery. B) Selling used goods and services. C) Increased taxes. D) Wages paid during the year. Show Answer Correct Answer: A) Investment in new machinery. 6. National Income differs from Net National Product at market price by the amount of: A) Net Indirect Taxes. B) It does not differ. C) National debt interest. D) Current transfers from rest of the world. Show Answer Correct Answer: A) Net Indirect Taxes. 7. Which of these would be counted when calculating the GDP of the United States? A) Number of people going to school in Idaho. B) Amount of loans made to the United States. C) Quality of services rendered in the United States. D) Selling price of goods produced in Michigan. Show Answer Correct Answer: D) Selling price of goods produced in Michigan. 8. A sharp decline in the real value of stock prices, which is independent of a change in the price level, would best be an example of A) A change in household indebtedness. B) A change in real value of consumer wealth. C) The interest rate effect. D) The foreign purchases effect. Show Answer Correct Answer: B) A change in real value of consumer wealth. 9. Money supply curve is vertical because A) The interest rate is constant. B) The quantity of money supplied is fixed by the central bank. C) The equilibrium is vertical. D) None of them. Show Answer Correct Answer: B) The quantity of money supplied is fixed by the central bank. 10. Economic growth most unambiguously occurs when there are increase in ..... A) Potential real GDP. B) Aggregate demand. C) Federal budget surplus. D) The population of a countrty. Show Answer Correct Answer: A) Potential real GDP. 11. A contractionary policy means that the Fed is attempting to A) Increase the size of the nation's money supply. B) Decrease the size of the nation's money supply. Show Answer Correct Answer: B) Decrease the size of the nation's money supply. 12. A situation in which a minimum price is set is referred to as A) A price floor. B) A shortage. C) A surplus. D) A price ceiling. Show Answer Correct Answer: A) A price floor. 13. This is a measure of how much overall prices change over time. A) Gross Domestic Product (GDP). B) Unemployment Rate. C) Inflation Rate. D) GDP Annual Growth Rate. E) Aggregate. Show Answer Correct Answer: C) Inflation Rate. 14. Spending by households is counted in the consumption category of gross domestic product, but there is one kind of household spending that is included in the investment category instead. A) The purchase of college tuition. B) The purchase of new homes. C) The purchase of government bonds. D) The purchase of new cars. Show Answer Correct Answer: B) The purchase of new homes. 15. Which of the following is correct according to the circular flow model of an economy? A) Imports equal exports. B) Consumption plus saving equals investment. C) Taxes received from the public equal government spending. D) Total spending equals total income. E) Saving plus investment equals imports plus exports. Show Answer Correct Answer: D) Total spending equals total income. 16. In macroeconomics, equilibrium is defined as that point at which A) Aggregate output equals consumption minus investment. B) Saving equals consumption. C) Planned aggregate expenditure equals aggregate output. D) Planned aggregate expenditure equals consumption. Show Answer Correct Answer: C) Planned aggregate expenditure equals aggregate output. 17. TRUE or FALSE:The European Union's national accounting conventions classify nonprofit hospitals and universities in the households sector. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 18. NDP at factor cost = A) Net Domestic product at market price + Depreciation. B) Net domestic product at market price-indirect tax. C) Net Domestic Product at market price+ Subsidies. D) Net Domestic Product at market price at market price-Net indirect tax. Show Answer Correct Answer: D) Net Domestic Product at market price at market price-Net indirect tax. 19. Anything that is legally accepted payment for goods and services. A) Dividends. B) Money. C) Markets. D) Economy. Show Answer Correct Answer: B) Money. 20. In a closed economy with no government, aggregate expenditure is A) Consumption plus investment. B) MPC + MPS. C) Saving plus investment. D) Consumption plus the MPC. Show Answer Correct Answer: A) Consumption plus investment. 21. Where do factors of production (land, labor, etc) come from in the circular flow model? A) Product Market. B) Firms. C) Factor Market. D) Individuals. Show Answer Correct Answer: D) Individuals. 22. Which of the following is an intermediate good? A) Car. B) Mobile. C) Sugar cane in a sugar Mill. D) Machine. Show Answer Correct Answer: C) Sugar cane in a sugar Mill. 23. Who is in charge of the Federal Reserve? A) The Illuminati. B) U.S. Congress. C) The Board of Governors. D) The President of the United States. Show Answer Correct Answer: C) The Board of Governors. 24. Research and Development or R&D, is spending to create and implement new ..... A) Infrastructure. B) Technologies. C) GDP. D) Depreciation. Show Answer Correct Answer: B) Technologies. 25. Tangible possessions such as real estate, cars, and farm animals is known as? A) Property Tax. B) Livestock. C) Federal Tax. D) A Job. Show Answer Correct Answer: A) Property Tax. 26. Capital refers to ..... A) The "gifts of nature" or natural resources not created by human effort. B) People with all their efforts and abilities. C) The tools, equipment, and factories used in production of goods and services. D) Individuals who start a new business or bring a product to market. Show Answer Correct Answer: C) The tools, equipment, and factories used in production of goods and services. 27. TRUE or FALSE:Results from the Harmonised European Time Use Survey indicate that in major EU countries, men and women are now as equally likely to do housework on any given day. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 28. Which of the following leads to depreciation? A) Normal wear and tear. B) Damages due to floods. C) Damages due to market-crash. D) None of these. Show Answer Correct Answer: A) Normal wear and tear. 29. What is cyclical unemployment? A) Cyclical unemployment. B) Seasonal unemployment. C) Frictional unemployment. D) Structural unemployment. Show Answer Correct Answer: A) Cyclical unemployment. 30. Government regulates certain industries. A) Traditional. B) Command. C) Market. D) Mixed. Show Answer Correct Answer: D) Mixed. ← 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