Macroeconomics

What is the primary focus of macroeconomics

• Local businesses

• Aggregate economy

• Specific industries

• Individual markets

Which of the following is a type of inflation caused by increased demand?

• Hyperinflation

• Cost-push inflation

• Demand-pull inflation

• Stagflation

What is the balance of trade?

• The total value of goods produced in a country

• A differences between a country's imports and exports

• The rate of inflation in a country

• The rate of economic growth in a country

What does a high GDP indicate?

• The country is underperforming

• The country has a high unemployment rate

• The country is exhausting its resources

• The country is experiencing deflation

What are the impacts of high and fluctuating inflation rates

• Decreased consumer spending

• Decreased economic uncertainty

• Increased economic uncertainty

• Increased economic stability

What is definition of exchange rate?

• The interest rates set by a central bank

• The relative price of one currency in terms of another currency

• The price of goods in a foreign market

• The rate of inflation in a foreign country

What is the unemployment rate?

• The total number of unemployed people

• The total number of employed people

• The proportion on unemployed people relative to the workforce

• The proportion of employed people relative to the workforc

What is recession characterised by?

• Rising GDP and falling unemployment

• Stable GDP an stable unemployment

• Falling GDP and rising unemployment

• Falling GDP and falling unemployment

What is the relationship between GDP growth rate and unemployment according to empirical studies?

• Positive relationship

• No relationship

• Fluctuating relationship

• Negative relationship

What is the desirable rate of inflation?

• Negative

• Zero

• Low and stable

• High and fluctuating