Online Macroeconomics MCQs 1

Test your macroeconomics knowledge with this intermediate-level quiz! This Online Macroeconomics MCQs quiz covers key concepts like GDP limitations, fiscal policy, unemployment types, the Phillips Curve, and more. Challenge yourself with questions on aggregate demand, monetary policy, automatic stabilizers, and the multiplier effect. Ideal for exam prep or brushing up on essential macroeconomics topics! Perfect for bachelor’s students and economics enthusiasts. Let us start with the Online Macroeconomics MCQs Test now.

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Created by Muhammad Imdad Ullah

Online Macroeconomics MCQs 1

Online Macroeconomics MCQs for intermediate and Bachelor classes

1 / 20

When aggregate demand exceeds aggregate supply, it leads to:

Deflation

Stagflation

Inflation

Recession

2 / 20

The natural rate of unemployment includes

Seasonal and frictional unemployment

Cyclical and seasonal unemployment

Frictional and structural unemployment

Inflationary and cyclical unemployment

3 / 20

Which of the following is a limitation of GDP as a measure of economic well-being?

All of these

It does not account for changes in the price level

It does not consider income distribution

It does not include non-market activities

4 / 20

In the aggregate expenditure model, what does "C" represent?

Net exports

Investment

Government spending

Consumption

5 / 20

What does the Laffer Curve illustrate?

The relationship between exports and imports

The relationship between interest rates and investment

The relationship between tax rates and government revenue

The relationship between inflation and unemployment

6 / 20

Which of the following is not a determinant of consumption in the Keynesian consumption function?

Interest rates

Consumer expectations

Disposable income

Government spending

7 / 20

What is the name for the total value of all financial assets in an economy?

M1

M2

GDP

Financial wealth

8 / 20

Which of the following is not considered a component of GDP?

Imports

Exports

Stock investments

Government spending

9 / 20

Which of the following is not a type of unemployment?

Seasonal unemployment

Structural unemployment

Inflationary unemployment

Frictional unemployment

10 / 20

What is the formula for calculating GDP using the expenditure approach?

GDP = C + I + G

GDP = C + I - G + X

GDP = C + I + G + (X - M)

GDP = C + I + G + X

11 / 20

What is the interest rate at which banks lend money to each other overnight called?

LIBOR (London Interbank Offered Rate)

Federal funds rate

Prime rate

Discount rate

12 / 20

What is the formula for calculating the marginal propensity to consume (MPC)?

Change in consumption / Change in income

Total income / Total consumption

Change in income / Change in consumption

Total consumption / Total income

13 / 20

The multiplier effect measures the impact of changes in ------------ on overall economic output.

All of these

Investment

Government spending

Consumer spending

14 / 20

Which of the following is considered a tool of fiscal policy?

Open market operations

Taxation

Discount rate

Reserve requirement

15 / 20

If the government increases taxes to reduce inflation, it is an example of

Contractionary monetary policy

Expansionary monetary policy

Expansionary fiscal policy

Contractionary fiscal policy

16 / 20

Which of the following is true about the federal budget deficit?

It has no impact on the economy

It always leads to inflation

It occurs when government expenditures are greater than tax revenues

It occurs when tax revenues are greater than government expenditures

17 / 20

What does the Phillips Curve depict?

The relationship between inflation and unemployment

The relationship between consumer spending and savings

The relationship between government spending and tax revenue

The relationship between GDP and interest rates

18 / 20

When the central bank sells government securities, it

Has no effect on the money supply

Decreases the money supply

Increases the money supply

Reduces the reserve requirement

19 / 20

Which of the following is an example of an automatic stabilizer in fiscal policy?

Decreasing the money supply

Discretionary government spending

Tax cuts during a recession

Unemployment benefits

20 / 20

Which of the following is not a function of money?

Medium of exchange

All of the above are functions of money

Store of value

Unit of account

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Online Macroeconomics MCQs 1

• Which of the following is a limitation of GDP as a measure of economic well-being?
• What is the name for the total value of all financial assets in an economy?
• Which of the following is true about the federal budget deficit?
• What does the Laffer Curve illustrate?
• The natural rate of unemployment includes
• Which of the following is not a type of unemployment?
• What does the Phillips Curve depict?
• Which of the following is an example of an automatic stabilizer in fiscal policy?
• When the central bank sells government securities, it
• What is the interest rate at which banks lend money to each other overnight called?
• Which of the following is not a function of money?
• If the government increases taxes to reduce inflation, it is an example of
• Which of the following is considered a tool of fiscal policy?
• When aggregate demand exceeds aggregate supply, it leads to:
• What is the formula for calculating the marginal propensity to consume (MPC)?
• The multiplier effect measures the impact of changes in ———— on overall economic output.
• Which of the following is not a determinant of consumption in the Keynesian consumption function?
• In the aggregate expenditure model, what does “C” represent?
• What is the formula for calculating GDP using the expenditure approach?
• Which of the following is not considered a component of GDP?

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