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

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

Open market operations

Reserve requirement

Discount rate

Taxation

2 / 20

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

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

GDP = C + I - G + X

GDP = C + I + G

GDP = C + I + G + X

3 / 20

What does the Phillips Curve depict?

The relationship between GDP and interest rates

The relationship between government spending and tax revenue

The relationship between inflation and unemployment

The relationship between consumer spending and savings

4 / 20

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

Consumer spending

Government spending

All of these

Investment

5 / 20

The natural rate of unemployment includes

Seasonal and frictional unemployment

Inflationary and cyclical unemployment

Frictional and structural unemployment

Cyclical and seasonal unemployment

6 / 20

Which of the following is not a type of unemployment?

Seasonal unemployment

Inflationary unemployment

Structural unemployment

Frictional unemployment

7 / 20

When aggregate demand exceeds aggregate supply, it leads to:

Stagflation

Recession

Deflation

Inflation

8 / 20

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

Interest rates

Government spending

Disposable income

Consumer expectations

9 / 20

Which of the following is not a function of money?

Unit of account

All of the above are functions of money

Medium of exchange

Store of value

10 / 20

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

It does not include non-market activities

It does not account for changes in the price level

It does not consider income distribution

All of these

11 / 20

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

Total consumption / Total income

Change in consumption / Change in income

Total income / Total consumption

Change in income / Change in consumption

12 / 20

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

It occurs when tax revenues are greater than government expenditures

It has no impact on the economy

It occurs when government expenditures are greater than tax revenues

It always leads to inflation

13 / 20

What does the Laffer Curve illustrate?

The relationship between interest rates and investment

The relationship between inflation and unemployment

The relationship between exports and imports

The relationship between tax rates and government revenue

14 / 20

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

Imports

Exports

Government spending

Stock investments

15 / 20

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

Government spending

Investment

Net exports

Consumption

16 / 20

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

M1

M2

GDP

Financial wealth

17 / 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

18 / 20

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

Expansionary monetary policy

Contractionary monetary policy

Contractionary fiscal policy

Expansionary fiscal policy

19 / 20

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

Discretionary government spending

Unemployment benefits

Decreasing the money supply

Tax cuts during a recession

20 / 20

When the central bank sells government securities, it

Has no effect on the money supply

Increases the money supply

Reduces the reserve requirement

Decreases the money supply

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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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