Our team has conducted extensive research to compile a set of Macroeconomics MCQs. We encourage you to test your Macroeconomics knowledge by answering these multiple-choice questions provided below.
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A. Gross Dividend Payout
B. Gradual Decline Process
C. Gross Domestic Product
D. Greatest Demand Produced
A. GNP represents all goods and services produced/provided by the residents of a country while GDP represents all goods and services produced/provided within a country's physical borders
B. GDP represents all goods and services produced/provided by the residents of a country while GNP represents all goods and services produced/provided within a country's physical borders
C. GNP will always be lower than GDP due to the adjustment for foreign taxes
D. GDP is adjusted for inflation while GNP is not
E. GNP is adjusted for inflation while GDP is not
A. Liquidity trap
B. Monetary crisis
C. Keynesian failure
D. Pigou effect
E. Interest rate trap
A. MPS * (MPC/3)
B. MPS = 1-MPC
C. 1/MPS = 1/(1-MPC)
D. 1/MPC + MPS
A. Real GDP only
B. The price level and Real GDP
C. The price level only
D. Nominal GDP only
E. The price level and Nominal GDP
A. The ratio of a country’s debt in relation to the amount of money borrowed from other countries
B. A record of a country’s monetary transactions with the rest of the world
C. A formula used to calculate a country’s economic well-being by deducting total imports from total exports
D. The Gross Domestic Product adjusted to take into consideration non-market activities
A. Producer Price Index
B. Aggregate expenditure
C. Gross Domestic Product
D. Consumer Price Index
A. Luxury goods
B. Inferior goods
C. Necessity goods
D. Sticky goods
E. Normal goods
A. Monetary multiplier
B. Fiscal multiplier
C. Consumer multiplier
D. National multiplier
E. Macroeconomic multiplier
A. Two consecutive quarters of Real GDP decline
B. One quarter of GNP decline
C. Four consecutive quarters of Real GDP decline
D. Five consecutive quarters of Real GDP decline
E. One quarter of Real GDP decline
A. Reduce inflation
B. Reduce unemployment
C. Increase unemployment
D. Increase FDI
E. Increase inflation
A. Production Protection Fund
B. Production Possibility Frontier
C. Production Probability Frontier
D. Pension Protection Fund
E. None of these
A. Okun's Law
B. Budget deficit
C. Washington's Law
D. Monetary Policy
A. Net exports fall
B. Congress decreases military spending
C. The price level rises
D. Monetary policy lowers interest rates
A. It is equal to the structural rate of unemployment
B. It is greater than the natural rate of unemployment
C. It is less than the natural rate of unemployment
D. It is zero
E. It is equal to the natural rate of unemployment
A. Marginal benefits
B. Unemployment rates
C. All of these
D. Net Domestic Product
E. Interest rates
A. 5%
B. 3%
C. 15%
D. 2%
A. Market good
B. Substitute
C. Luxury good
D. Inferior good
E. Normal good
A. Determines trade barriers
B. Determines the type of goods available
C. Determines the elasticity of supply
D. Determines relative value of currencies
E. Determines the elasticity of demand
A. True
B. False
A. True
B. False
A. GDP per capita increasing faster in poorer countries versus richer countries
B. Countries becoming more open to foreign trade
C. A company buying stocks issued in another country
D. A corporation buying a factory in a foreign country
A. High sustainable economic growth
B. Capping supply
C. Low unemployment
D. Price stability
A. No government intervention
B. Government intervention in the market place for economic growth and stability
C. Relationship between possible rates of taxation and the resulting levels of government revenue
D. None of these
E. Transactions between private parties are free from tariffs
A. A flat tax imposed on imported goods
B. A country keeping the exchange rate between its currency and another currency fixed
C. A country allowing the value of its currency to be determined by supply and demand
D. A contract that allows households to exchange currency for a fixed amount of gold from the central bank
A. Marginal Opportunity Cost
B. Marginal Disposable Income
C. Marginal Propensity to Consume
D. Marginal Propensity to Save
A. Gross Domestic Product
B. Per Capita National Income
C. Balance of Payments
D. Gross National Product
A. Relationship between net exports and government spending
B. Relationship between the foreign exchange rate and household purchases
C. Relationship between the inflation rate and the unemployment rate
D. Relationship between the long term real interest rate and the supply of loanable funds
A. Fiscal policy
B. Inflation
C. Gross Domestic Product
D. Keynesian economics
A. Holding everything else constant
B. Rational expectations
C. Free trade
D. That which is to be demonstrated
A. Inferior goods
B. None of these
C. Complementary goods
D. Necessity goods
E. Supplemental goods
A. Aggregate demand
B. Inflation
C. Consumer Price Index
D. National debt
A. employment rises and production falls
B. unemployment rises and production increases
C. unemployment rises and production falls
D. unemployment falls and surplus supplies increase
A. Two consecutive quarters of Real GDP decline
B. Supply doesn't equal demand
C. When Real GDP and Potential GDP are the same
D. 1 month of Actual GDP decline
A. study of individuals and business decisions
B. The interaction between individual buyers and sellers and the factors that influence the choices made by buyers and sellers
C. The study of the behavior of the economy at the aggregate level
D. The study of patterns of supply and demand and the determination of price and output in individual markets
A. A good that is from overseas and is taxed heavily in domestic markets
B. A good in which there is an inverse relationship between income and the demand for the good
C. A good in which there is a direct relationship between income and the demand for the good
D. A good that is imported and is consumed in relatively small quantities
A. False
B. True
A. Aggregate expenditure < GDP
B. Aggregate expenditure = GDP
C. Aggregate expenditure > GDP
D. When the unemployment rate is high
A. Utility bill
B. House
C. Cash
D. Computer
A. United States
B. Germany
C. Canada
D. North Korea
A. The United States Treasury Department
B. The Federal Reserve
C. The Federal Deposit Insurance Corporation
D. The United States Mint
A. The branch of economics that focuses on the national and global economy
B. The branch of economics that focuses on the supply and demand of individual firms
C. The branch of economics that analyzes individuals buying behavior
D. The branch of economics that is no longer relevant and has been discredited as a whole
A. The supply curve is nonlinear
B. Quantity Supplied equals quantity demanded
C. Quantity Supplied is greater than quantity demanded
D. Quantity Demanded is greater than quantity supplied
A. Real interest rate
B. Nominal interest rate
C. Effective interest rate
D. Annual percentage rate (APR)
A. most often occur when actual GDP is less than potential GDP
B. most often are caused by sharp increases in aggregate demand
C. can only occur in a situation when the AS-curve is vertical
D. can only occur if the output gap is large
A. No. The unemployment rate flucuates due to the business cycle, however it can never go below the natural rate of unemployment
B. Yes. The unemployment rate can go below the natural rate of unemployment in the short term and remain below the natural rate of unemployment in the long term
C. No. The unemployment rate is always at the natural rate of unemployment
D. Yes. The unemployment rate can go below the natural rate of unemployment in the short term
A. Expansionary Monetary Policy
B. Expansionary Fiscal Policy
C. Contractionary Fiscal Policy
D. Contractionary Monetary Policy
A. There will be no effect
B. The net effect is uncertain
C. National income will rise by £1
D. national income will decrease by £1
A. When government spending replaces private sector spending
B. When government does not add additional output to the economy
C. All of these
D. When investments are limited
E. When interest rates are raised
A. Good Deflation Process
B. Granular Dedicated Purpose
C. Glossy Dark Paper
D. Gross Domestic Product