Macro Economics Quiz

Which of the following is NOT a primary goal of macroeconomics?

• Achieving full employment

• Ensuring price stability

• Promoting income equality

• Maximizing the growth rate of individual companies

What is the definition of Gross Domestic Product (GDP)?

• The total market value of all goods and services produced within a country's borders in a given period

• The total income of individuals within a country

• The total market value of all imported goods and services

• The difference between a country's exports and imports

Which of the following is included in the calculation of GDP using the expenditure approach?

• Unemployment benefits

• Government transfer payments

• Private consumption spending

• Sales of used goods

Which type of unemployment occurs when there is a mismatch between workers' skills and the jobs available?

• Cyclical unemployment

• Frictional unemployment

• Structural unemployment

• Seasonal unemployment

The central bank uses monetary policy to influence which of the following?

• Government spending

• The supply of money and interest rates

• Taxation rates

• The production of goods and services

The business cycle refers to:

• The ups and downs in the level of economic activity in an economy

• The long-term trend of increasing GDP

• The constant price levels in an economy

• The cyclical pattern of government spending

In the short run, an increase in aggregate demand leads to:

• A decrease in output and prices

• An increase in output and prices

• No change in output or prices

• A decrease in output with stable prices

Which of the following is a characteristic of inflation?

• A decrease in the general level of prices

• An increase in the general level of prices

• A decrease in the supply of money

• A decrease in employment

Fiscal policy primarily refers to the use of:

• Interest rates to control inflation

• Taxes and government spending to influence economic activity

• Exchange rates to stabilize the currency

• The money supply to promote investment

What does the term 'stagflation' refer to?

• A situation where inflation and economic growth occur simultaneously

• A period of high inflation combined with high unemployment and stagnant economic growth

• A rapid increase in the production of goods and services

• A period of falling prices and high employment