Macroeconomics Quiz 3

Test your macroeconomics knowledge with this challenging quiz! The macroeconomics Quiz covers economic theory, GDP, inflation, monetary policy, unemployment, and more. This quiz is perfect for students, professionals, and economics enthusiasts. See if you can ace all 20 questions! Let us start with the Online Macroeconomics Quiz now.

0 votes, 0 avg

Created by Muhammad Imdad Ullah

Macroeconomics Quiz 3: Can You Score 10/10?

Online Macroeconomics Quiz with answers

1 / 20

Which of the following is a measure of the total value of all income earned by residents of a country, including income earned abroad?

Gross National Product (GNP)

Gross Domestic Product (GDP)

Net National Product (NNP)

Net Domestic Product (NDP)

2 / 20

Which of the following is an example of a disinflationary policy?

Reducing interest rates

Decreasing the money supply

Increasing government spending

Lowering taxes

3 / 20

Which of the following is a characteristic of the classical economic theory?

Government spending should always be increased during a recession.

Prices and wages are flexible and will adjust to equate supply and demand.

Monetary policy is ineffective in influencing economic output.

Government intervention in the economy is necessary to achieve full employment.

4 / 20

What is the term for the situation in which an economy is producing below its potential output?

Stagflation

Inflation

Full employment

Recession

5 / 20

Which of the following is a measure of the average level of prices of goods and services consumed by the typical household?

Producer Price Index (PPI)

Consumer Price Index (CPI)

GDP deflator

Retail Price Index (RPI)

6 / 20

Which of the following is an example of a contractionary fiscal policy?

Decreasing government spending

Increasing government spending

Raising interest rates

Lowering taxes

7 / 20

What is the term for the percentage of the labor force that is unemployed and actively seeking employment?

Inflation rate

Poverty rate

Labor force participation rate

Unemployment rate

8 / 20

In the Solow growth model, what is the primary driver of long-term economic growth?

Technological progress

Government spending

Population growth

Monetary policy

9 / 20

When the government reduces government spending to combat inflation, it is an example of:

Contractionary fiscal policy

Contractionary monetary policy

Expansionary monetary policy

Expansionary fiscal policy

10 / 20

What is the term for a sustained increase in the general price level of goods and services in an economy?

Inflation

Deflation

Disinflation

Stagflation

11 / 20

What is the term for the difference between a country's exports and imports of goods and services, including income from abroad?

Trade deficit

Balance of payments

Capital account balance

Current account balance

12 / 20

Which of the following is a measure of the overall level of prices in an economy?

Balance of payments

CPI (Consumer Price Index)

Unemployment rate

GDP

13 / 20

Which of the following is a key component of the expenditure approach to calculating GDP?

Personal saving

Underground economy transactions

Government transfer payments

Gross private domestic investment

14 / 20

The natural rate of unemployment is sometimes referred to as the:

Full employment rate

Frictional unemployment rate

Structural unemployment rate

Cyclical unemployment rate

15 / 20

Which of the following is an example of a lag in monetary policy?

The time it takes for consumers to adjust their spending in response to a change in interest rates

The time it takes for the government to pass a new tax law

The time it takes for the stock market to react to economic news

The time it takes for the central bank to change interest rates

16 / 20

What is the term for the total value of all financial assets in an economy, excluding physical assets like real estate and cars?

Gross domestic product

Net wealth

Gross wealth

Gross national product

17 / 20

Which of the following is an example of a contractionary monetary policy?

Decreasing the reserve requirement

Increasing the money supply

Lowering interest rates

Selling government securities

18 / 20

Which of the following is a measure of the change in the price level of a basket of goods and services over time?

Interest rate

Exchange rate

inflation rate

Unemployment rate

19 / 20

Which of the following is a characteristic of the Keynesian economic theory?

Prices and wages are flexible and will adjust to equate supply and demand.

Aggregate demand can fall short of aggregate supply, leading to recessions.

Monetary policy is the primary tool for stabilizing the economy.

Government intervention in the economy is unnecessary.

20 / 20

What is the term for a sustained decrease in the general price level of goods and services in an economy?

Disinflation

Stagflation

Deflation

Inflation

Your score is

The average score is 0%

0%

Restart quiz

Macroeconomics Quiz 3: Can You Score 10/10?

• What is the term for the situation in which an economy is producing below its potential output?
• Which of the following is a characteristic of the Keynesian economic theory?
• The natural rate of unemployment is sometimes referred to as the:
• Which of the following is an example of a contractionary monetary policy?
• What is the term for a sustained decrease in the general price level of goods and services in an economy?
• Which of the following is a measure of the change in the price level of a basket of goods and services over time
• When the government reduces government spending to combat inflation, it is an example of:
• What is the term for the total value of all financial assets in an economy, excluding physical assets like real estate and cars
• Which of the following is a measure of the average level of prices of goods and services consumed by the typical household?
• In the Solow growth model, what is the primary driver of long-term economic growth?
• What is the term for the percentage of the labor force that is unemployed and actively seeking employment?
• Which of the following is a key component of the expenditure approach to calculating GDP?
• Which of the following is an example of a disinflationary policy?
• Which of the following is a measure of the overall level of prices in an economy?
• Which of the following is a characteristic of the classical economic theory?
• What is the term for the difference between a country’s exports and imports of goods and services, including income from abroad?
• Which of the following is a measure of the total value of all income earned by residents of a country, including income earned abroad?
• Which of the following is an example of a contractionary fiscal policy?
• What is the term for a sustained increase in the general price level of goods and services in an economy?
• Which of the following is an example of a lag in monetary policy?

Online Generative AI MCQs