Quiz on Macroeconomics SL

What is the main goal of macroeconomics?

• To study individual markets

• To analyze the overall economy

• To determine the price of a single good

• To focus on firm behavior

Gross Domestic Product (GDP) measures:

• The total income earned by a country's residents

• The total market value of all final goods and services produced within a country

• The total value of all transactions in the economy

• The total value of exports minus imports

Which of the following would be included in the calculation of GDP?

• A family member mowing their own lawn

• The sale of second-hand goods

• A newly produced car sold to a customer

• A social security payment

Real GDP is different from nominal GDP because it:

• Excludes government spending

• Excludes exports and imports

• Adjusts for changes in the price level

• Measures only consumer spending

Which of the following is NOT a macroeconomic objective?

• Full employment

• Stable inflation

• Income inequality reduction

• Profit maximization

A recession is typically defined as:

• A period of rising inflation

• Two consecutive quarters of negative GDP growth

• An increase in government spending

• A period of high economic growth

Cyclical unemployment is caused by:

• Technological advancements

• Seasonal changes in demand

• A fall in aggregate demand

• An increase in the minimum wage

If the economy is at full employment, which type of unemployment still exists?

• Cyclical unemployment

• Structural and frictional unemployment

• Seasonal unemployment only

• No unemployment exists

Inflation is best defined as:

• A sustained increase in the price level

• A rise in the price of one good

• An increase in GDP

• An increase in wages only

Demand-pull inflation is caused by:

• An increase in aggregate demand

• A rise in production costs

• A decrease in government spending

• A fall in consumer confidence