Macroeconomics Quiz

What is the primary focus of macroeconomics compared to microeconomics?

• Individual income and prices

• National income and aggregate decisions

• Household and firm decisions

• Supply and demand for labor

Which of the following is NOT a major macroeconomic goal?

• Full employment

• Price stability

• Perfect competition

• Economic growth

What does achieving full employment in macroeconomics entail?

• Maximizing inflation

• Utilizing all available factors of production efficiently

• Reducing GDP growth

• Increasing unemployment rates

What typically happens to the aggregate demand curve when government spending increases?

• Shifts to the left

• Shifts to the right

• Becomes vertical

• Becomes horizontal

Which of the following leads to a rightward shift in the aggregate supply curve?

• Increase in taxes

• Increase in production costs

• Decrease in interest rates

• Decline in productivity

What is the relationship between price level and Real GDP along the aggregate demand curve?

• Direct relationship

• Inverse relationship

• No relationship

• Exponential relationship

What is the term for government-imposed measures to reduce inflation?

• Expansionary fiscal policy

• Contractionary monetary policy

• Supply-side growth policy

• Aggregate demand adjustment

What occurs during economic growth when the growth rate of output exceeds the growth rate of population?

• Inflation rises

• Per capita goods and services increase

• National income decreases

• Employment levels fall

Which macroeconomic goal involves narrowing the gap between high-income and low-income groups?

• Price stability

• Full employment

• Equitable distribution of income

• Economic growth

In national income accounting, what does the term 'aggregate demand' refer to?

• Total quantity of labor available

• Total output supplied at alternative price levels

• Total quantity of output demanded at alternative price levels

• Total production capacity of an economy