This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 53 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 53 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The IS model relates to the ..... policy. A) Health. B) Fiscal. C) Education. D) Monetary. Show Answer Correct Answer: B) Fiscal. 2. The expansionary fiscal policy involves A) Only an increase in taxes. B) A decrease in government spending and/or an increase in taxes. C) Only a decrease in government spending. D) An increase in government spending and/or a decrease in taxes. Show Answer Correct Answer: D) An increase in government spending and/or a decrease in taxes. 3. Paul is a stay at home dad, who takes care of three young children. Paul is ..... A) Unemployed. B) A discouraged worker. C) Employed. D) Not in the workforce. Show Answer Correct Answer: D) Not in the workforce. 4. Ted is working towards his dream of becoming a lawyer by working at a law firm as a legal clerk. A) Free Market. B) Traditional. C) Command. D) None of above. Show Answer Correct Answer: A) Free Market. 5. Unemployment caused by by a deficiency of total spending. The overall demand for goods and services decreases. A) Seasonal Unemployment. B) Cyclical Unemployment. C) Frictional Unemployment. D) Structural Unemployment. Show Answer Correct Answer: B) Cyclical Unemployment. 6. In reality, all economies are: A) Market. B) Command. C) Mixed. D) None of above. Show Answer Correct Answer: C) Mixed. 7. Which of the following is a flow? A) Population. B) Births and deaths. C) Water in a tank. D) None of these. Show Answer Correct Answer: B) Births and deaths. 8. Which of the following would not cause a shift in the long-run aggregate supply curve? A) An increase in the available capital. B) An increase in the available labourd. C) An increase in the available technologye. D) An increase in price expectations. E) All of these answers shift the long-run aggregate supply curve. Show Answer Correct Answer: D) An increase in price expectations. 9. The quantity of goods and services purchased at all possible price levels is known as. A) Demand. B) Supply. C) Aggregate demand. D) Aggregate supply. Show Answer Correct Answer: C) Aggregate demand. 10. Which of the following is a flow concept A) Speed. B) Distance. C) Both. D) None. Show Answer Correct Answer: A) Speed. 11. A weakening Rupiah will have an impact.....on the equity market. A) Constant. B) Positive. C) Negative. D) All three are correct. Show Answer Correct Answer: C) Negative. 12. The demand for money is most dependent upon? A) The availability of credit card. B) The level of prices. C) The interest rate. D) The availability of banking outlets. Show Answer Correct Answer: B) The level of prices. 13. Investment in education impacts the productivity of a nation. A) True. B) False. Show Answer Correct Answer: A) True. 14. Which of the following is an example of fiscal policy? A) Increasing government expenditures to build highways. B) Increasing the money supply to increase income. C) Decreasing the discount rate to lower unemployment and inflation. D) Decreasing the federal funds rate to stimulate investment. E) Decreasing the reserve ratio to increase bank reserves. Show Answer Correct Answer: A) Increasing government expenditures to build highways. 15. Normally a demand curve will have the following shape: A) Vertical. B) Upward slope. C) Horizontal. D) Downward slope. Show Answer Correct Answer: D) Downward slope. 16. Which of the following is an abbreviation for the amount of money in the narrow sense? A) What. B) With. C) Mch. D) M1. Show Answer Correct Answer: D) M1. 17. Who will benefit if the inflation rate over a thirty-year period is higher than expected? A) Lenders who provided thirty-year mortgage loans. B) People who sold their homes to a buyer with a mortgage loan. C) Borrowers who took out thirty-year mortgage loans. D) People who purchased their homes without a mortgage loan. Show Answer Correct Answer: C) Borrowers who took out thirty-year mortgage loans. 18. The IS curve will ..... if firms expect lower sales in the future A) Unchanged. B) Shift down. C) Shift to the left. D) Shift to the right. Show Answer Correct Answer: D) Shift to the right. 19. Equilibrium of consumer A) MUx/Px = MUy/Py. B) Px/MUx = Py/MUy. Show Answer Correct Answer: A) MUx/Px = MUy/Py. 20. Shows the relationship between unemployment and inflation after expectations of inflation have had time to adjust to experience. A) Short Run Phillips Curve. B) Long Run Phillips Curve. C) Elon Musk. D) None of above. Show Answer Correct Answer: B) Long Run Phillips Curve. 21. What type of inflation is normal for an economy? A) Upward Inflation. B) Deflation. C) Hyperinflation. D) Creeping Inflation. Show Answer Correct Answer: D) Creeping Inflation. 22. The actions of the FED that control and regulate the amount of money in the economy are referred to as A) Monetary policy. B) International trade. C) Fiscal policy. D) Opportunity costs. Show Answer Correct Answer: A) Monetary policy. 23. When you buy a PlayStation instead of an X-Box because the price of the PlayStation went up, this is an example of what? A) Economics. B) Substitutions. C) Complements. D) Elasticity. Show Answer Correct Answer: B) Substitutions. 24. This is the factor by which a change in tax collections changes real GDP. A) Tax Multiplier. B) Balanced Budget Multiplier. Show Answer Correct Answer: A) Tax Multiplier. 25. Automatic stabilizers ..... A) Reduce government spending during recessions. B) Are not affected by recessions or expansions. C) Increase government revenue during expansion. D) Increase government revenues during recessions. E) Are not accurately described by any of these statements. Show Answer Correct Answer: C) Increase government revenue during expansion. 26. Gross Domestic Product (GDP) that is measured using current prices is called A) Real GDP. B) Constant GDP. C) Nominal GDP. D) Deflated GDP. Show Answer Correct Answer: C) Nominal GDP. 27. Which one of the following is NOT likely to be a result of a high rate of inflation? A) People will increasingly rely upon barter. B) People on fixed pensions will see the value of their pensions decrease. C) Wealth will be redistributed from creditors to debtors. D) People will be more likely to postpone major purchases. E) Menu costs will increase. Show Answer Correct Answer: D) People will be more likely to postpone major purchases. 28. Which of the following deals with Macroeconomics? A) Individual savings. B) Individual output. C) General price level. D) Individual income. Show Answer Correct Answer: C) General price level. 29. According to the modern view of monetary policy, rapid (expansive) growth in the money supply in the long run will: A) Causing the rate of inflation and interest rates to fall. B) Causes inflation and interest rates to rise. C) Does not affect the economy. D) Resulting in an increase in real GDP and unemployment rates. Show Answer Correct Answer: B) Causes inflation and interest rates to rise. 30. Adam Smith's call for the restricting of government in the economy is called ..... A) The invisible hand. B) Laissez Faire. C) Consumer sovereignty. D) Competition. Show Answer Correct Answer: B) Laissez Faire. ← 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