Macroeconomics II

Macroeconomics II

Assessment

Quiz

Created by

Ariunzaya Sergelenbat

Social Studies

University

1 plays

Hard

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Disposable income is....

Marginal Propensity to Consume

Marginal Propensity to Save

Personal Income less Taxes

All of the above choices are true.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If the income increases by £800, spending rises by £560 and saving grows by £240, what will be the proportion of Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS)?

MPC=0.8

MPS=0.2

MPC=0.7

MPS=0.3

MPC=0.3

MPS=0.7

MPC=0.2

MPS=0.8

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If the spending multiplier is 3.3 (1/0.3=3.3), how much will £560 of new consumption increase GDP?

£ 1848

£169.6

£4000

None

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

There is an inverse relationship between the price level and real gross domestic product (RGDP) in aggregate demand. True/False

True

False

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Increase in business tax and regulations will result in aggregate supply curve shift to the ....

Right

Left

No changes

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Inflationary gap occurs when ... .It means the economy is experiencing low level of unemployment.

Current output> Long-run Output

Current Output<Long-run Output

Current Output=Long-run Output

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are the automatic stabilisers in the economy?

Fiscal policy

Taxes

Benefits

Budget Deficit

Taxes

Transfer Payments

Taxes

Benefits

All correct