#1
Which of the following is NOT a broad economic goal?
Price stability
Low unemployment
High government spending
Economic growth
#2
Which of the following indicators is typically used to measure economic growth?
Consumer Price Index (CPI)
Unemployment rate
Gross Domestic Product (GDP)
Poverty rate
#3
What is the primary tool used by central banks to implement monetary policy?
Interest rates
Tax rates
Government spending
Exchange rates
#4
What does the term 'fiscal policy' refer to?
Government's control over the money supply
Government's use of taxation and spending to influence the economy
International trade agreements
Private sector investment strategies
#5
Which of the following is NOT a component of aggregate demand?
Consumption
Investment
Government spending
Imports
#6
Which of the following is a characteristic of a recession?
High inflation
Decreasing unemployment
Negative GDP growth
Expansionary monetary policy
#7
Which of the following is NOT a typical function of money in an economy?
Medium of exchange
Store of value
Unit of measurement
Producer of goods
#8
What is the primary goal of monetary policy?
To control inflation
To promote economic growth
To reduce income inequality
To increase government revenue
#9
What is the term for the situation when the economy is producing at its maximum potential output?
Recession
Stagnation
Peak output
Full employment equilibrium
#10
Which of the following is a potential consequence of high inflation?
Increased purchasing power
Decreased borrowing costs
Loss of confidence in currency
Increased exports
#11
Which of the following is an example of an expansionary fiscal policy measure?
Decreasing government spending
Increasing taxes
Cutting welfare programs
Increasing government spending
#12
What is the term for a situation where the inflation rate is negative?
Deflation
Hyperinflation
Stagflation
Reflation
#13
What is the term for the situation when an economy experiences both inflation and high unemployment simultaneously?
Hyperinflation
Stagflation
Deflation
Expansion
#14
What is the term for the situation when the government spends more money than it collects in revenue?
Budget surplus
Budget deficit
Budget equilibrium
Budget reallocation
#15
According to classical economic theory, what is the best way to achieve long-term economic growth?
Government intervention in the market
Maintaining a balanced budget
Promoting free trade
Increasing government regulation
#16
In the context of economic policy, what does the term 'crowding out' refer to?
The displacement of private investment due to government borrowing
The increase in consumer spending during economic downturns
The effect of fiscal stimulus on aggregate demand
The reduction in interest rates due to government intervention
#17
What is the primary objective of supply-side economics?
To increase government spending
To reduce income inequality
To stimulate demand through fiscal policy
To promote economic growth through policies that encourage production