ECO557 - CHAPTER 1

The index that measures the change in price of a typical basket of consumer goods is

• the GDP deflator

• the consumer price index

• nominal GDP

• real GDP

Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole

• Yes

• No

Inflation and Interest rate are two macroeconomics variables that are often linked together in policy discussion

• Yes

• No

To reduce inflation, BNM lower the interest rates to reduce aggregate demand

• Yes

• No

A trade surplus is good as it

• creates more jobs for the domestic economy

• it lowers consumption among domestic households as the country gives the rest of the world (export) more than it gets in return (import)

• jobs are being lost to overseas workers

Deficit Budget

• Expenditure > Revenue

• Expenditure < Revenue

• Expenditure = Revenue

The period between a business cycle peak and the subsequent trough is called

• a recession

• a complete cycle

• an expansion

• a change in economic trend

Impact of Budget 2024 economic and fiscal measures

• Good governance for service agility

• Restructuring of the economy to boost growth

• Raising Rakyat’s standard of living

• All the answers is correct