This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 59 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 59 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Contractionary or Expansionary?The BSP notices that the Philippine economy is growing in a non-healthy rate for the last several quarters, which may lead to unhealthy increases in prices. With this observation, the said central bank advised the national government to embrace a more austere (restricted) spending. BSP is advocating what type of macroeconomic policy? A) Expansionary. B) Contractionary. Show Answer Correct Answer: B) Contractionary. 2. What section of the Keynesian aggregate supply curve is explained by the bottleneck effect? A) Section IV. B) Section I. C) Section III. D) Section II. Show Answer Correct Answer: D) Section II. 3. The economy of Burginville has experienced high rates of inflation over the past 10 years.According to the quantity theory of money, which of the following is the most likely explanation for the sustained inflation during this period? A) A money supply that has increased at the same pace as real output. B) Expansionary monetary policy. C) Better banking technology that has decreased the velocity of money. D) Strong economic growth. E) Contractionary monetary policy. Show Answer Correct Answer: B) Expansionary monetary policy. 4. Which of the following would cause the long-run Phillips curve to shift to the right? A) A decrease in frictional unemployment. B) An increase in cyclical unemployment. C) An increase in structural unemployment. D) An increase in aggregate demand (AD). E) A decrease in aggregate demand (AD). Show Answer Correct Answer: C) An increase in structural unemployment. 5. Which topic is included in microeconomics? A) Economic growth. B) Elasticity of demand. C) Inflation. D) The balance of payments. Show Answer Correct Answer: B) Elasticity of demand. 6. Assume that last year the consumer price index (CPI) was 150 and a household's nominal income was $ 30, 000. If the CPI this year is 160, to be as well off as last year, the household should have an increase in nominal income of A) $ 1, 800. B) $ 4, 800 . C) $ 3, 000. D) $ 2, 000. E) $ 1, 875. Show Answer Correct Answer: D) $ 2, 000. 7. Perfect competition market price of a good is determined by A) Industry. B) Government. C) A Firm. D) Market demand. Show Answer Correct Answer: A) Industry. 8. In a competitive labor market, an increase in the minimum wage results in a(n) ..... in the quantity of labor supplied and a(n) ..... in the quantity of labor demanded. A) Increase, decrease. B) Decrease, increase. C) Increase, increase. D) Decrease, decrease. Show Answer Correct Answer: A) Increase, decrease. 9. In which type of society would we most likely find a traditional economic system? A) A major city. B) An established country. C) Rural and under-developed territory. D) All of the above. Show Answer Correct Answer: C) Rural and under-developed territory. 10. The index number for base year is always ..... A) 200. B) 100. C) 1000. D) 10. Show Answer Correct Answer: B) 100. 11. TRUE or FALSE:Another name for nominal GDP is current-price GDP. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 12. When you open a savings account at a bank, you are using money as a ..... A) Unit of value. B) Store of value. C) Medium of exchange. D) Consumer price index. Show Answer Correct Answer: B) Store of value. 13. Inflation is a rise in: A) The general level of prices over time. B) Real GDP. C) Industrial production. D) The standard of living over time. Show Answer Correct Answer: A) The general level of prices over time. 14. Which of the following would be negatively affected from unanticipated inflation? A) Entrepreneurs who borrow money. B) Individuals who take out personal loans. C) Workers with cost of living increases. D) People with fixed rate home mortgages. E) People that own investments that pay a fixed rate of interest, such as bonds. Show Answer Correct Answer: E) People that own investments that pay a fixed rate of interest, such as bonds. 15. Choose the formula that most correctly explains savings, investment and international flows! A) S = 1 + NCO. B) S = Y-C-NX. C) S = I + NCO. D) S = 1 + NX. Show Answer Correct Answer: C) S = I + NCO. 16. When a lot of sellers exit the market, the supply curve A) Shifts left. B) Shifts right. C) Does not shift. D) None of above. Show Answer Correct Answer: A) Shifts left. 17. An expansionary fiscal policy would most likely cause which of the following changes in output and interest rates? (1) Outputs-(2) Interest Rates A) No change-(2) Decrease. B) Decrease-(2) Increase. C) Decrease-(2) Decrease. D) Increase-(2) Decrease. E) Increase-(2) Increase. Show Answer Correct Answer: E) Increase-(2) Increase. 18. An economist is presented with information about the prices of a selection of goods over several years. This information would be MOST useful for which purpose? A) For calculating unemployment. B) To compile a price index to measure inflation. C) Deciding whether or not to buy bonds on the open market. D) Calculating Gross Domestic Product. Show Answer Correct Answer: B) To compile a price index to measure inflation. 19. If the marginal propensity to consume is two-thirds, the multiplier is A) 66. B) 30. C) 1.5. D) 3. Show Answer Correct Answer: D) 3. 20. How does a government-funded construction project stimulate spending? A) By selling leftover materials to construction workers. B) By requiring construction workers to buy equipment. C) By creating homes for construction workers to rent. D) By providing construction workers with regular income. Show Answer Correct Answer: D) By providing construction workers with regular income. 21. During economic crisis, the primary role of the Government is to promote a healthy economy by ..... A) Controlling the budget. B) Setting spending levels. C) Managing taxes and government spending. D) Loaning out money. Show Answer Correct Answer: C) Managing taxes and government spending. 22. This type of fiscal policy increases aggregate demand. A) Expansionary. B) Contractionary. C) Discretionary. D) None of above. Show Answer Correct Answer: A) Expansionary. 23. Allocativly efficient A) Markets that are characterized by many buyers and many sellers. B) A model that shows the flow of goods and services and the interaction among households, businesses, and banks. C) Advantagethe ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors. D) A property of an efficient market whereby all goods and services are optimally distributed among buyers in an economy. Show Answer Correct Answer: D) A property of an efficient market whereby all goods and services are optimally distributed among buyers in an economy. 24. A carpenter is able to operate complex machinery and can perform their job with little supervision. This type of job falls under the category of ..... A) Skilled labor. B) Professional labor. C) Unskilled labor. D) Semi-skilled labor. Show Answer Correct Answer: A) Skilled labor. 25. Behavior modification is which type of tax? A) Individual. B) Sales. C) Sin. D) Redistribution. Show Answer Correct Answer: C) Sin. 26. If you place a part of your summer earnings as cash in a safety deposit box, you are employing money as A) A store of value. B) A medium of exchange. C) A measure of value of account. D) A standard of deferred payment. Show Answer Correct Answer: A) A store of value. 27. All of the following are tools of monetary policy but ..... A) Interest payments on reserves. B) Reserve requirment. C) Discount rate. D) Open market operations. E) Deposit destination. Show Answer Correct Answer: E) Deposit destination. 28. The aggregate of demand and the aggregate of supply study of relationship between A) The price level and unemployment. B) The price level and real GDP. C) Unemployment and real GDP. D) Nominal GDP and inflation. Show Answer Correct Answer: B) The price level and real GDP. 29. Which of the following is most likely included in gross domestic product? A) Matt gives his secondhand bicycle to his brother. B) Sal paints his own bicycle. C) Ali buys a new bicycle. D) Mike buys a share of stock in a bicycle firm. E) Daniel bikes to school every day. Show Answer Correct Answer: C) Ali buys a new bicycle. 30. Which is not a tool of fiscal policy? A) Government borrowing. B) Bank rate. C) Government expenditure. D) Tax. Show Answer Correct Answer: B) Bank rate. ← 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