Macro economics

Macroeconomics focuses on

•  Individual markets and prices

• The behavior of firms and consumers

• The overall performance of the economy

• The role of government in the economy

The most common measure of economic output is

• Gross Domestic Product(GDP)

•  Gross National Product(GNP)

• Consumer Price Index(CPI)

• Unemployment rate

Aggregate demand includes

• Consumption, investment, government spending, and net exports

• Consumption, saving, investment, and government spending

• Consumption, taxes, government spending, and net exports

• Consumption, investment, government borrowing, and net imports

The Phillips Curve shows a relationship between

• Inflation and unemployment

• Interest rates and inflation

• Economic growth and inflation

• Government spending and investment

An increase in interest rates will likely

• Increase investment

• Decrease inflation

• Increase consumer spending

•  Decrease aggregate demand

Which one is not a role of the central bank?

• Set interest rates

• Control the money supply

• Manage the budget deficit

• Oversee the banking system

A fiscal policy tool is

• An open market operation

• A change in reserve requirements

• A change in government spending

•  A change in tax rates

The goal of expansionary fiscal policy is to

• Increase aggregate demand

•  Decrease aggregate demand

• Reduce unemployment

• Control inflation

A fixed exchange rate regime means that

• The currency value is allowed to fluctuate freely

• The government sets a target for the exchange rate

• The currency is pegged to another currency

• The exchange rate is determined by market forces

The balance of payments includes

• The current account and the capital account

• The government budget and the national debt

• The money supply and the interest rate

• Inflation and unemployment