Economic Indicators and Government Spending Quiz

Test your knowledge on GDP, CPI, fiscal & monetary policy. Learn about recession, inflation, and more in this macroeconomics quiz!

Practice Learn Test

Which of the following is NOT an economic indicator?

GDP

CPI

SAT

Unemployment rate

What does GDP stand for?

Gross Domestic Product

Government Development Plan

Global Development Policy

Gross Development Process

Which of the following is NOT a component of GDP?

Government spending

Personal consumption

Net exports

Corporate profits

What does CPI stand for?

Consumer Price Index

Corporate Profit Indicator

Country Price Index

Cost Price Index

What is the primary goal of expansionary fiscal policy?

To reduce inflation

To increase government spending

To decrease aggregate demand

To decrease taxes

Which of the following is a characteristic of a recession?

Rising GDP

High employment rates

Declining consumer spending

Rising inflation

Which of the following is NOT a tool of monetary policy?

Open market operations

Fiscal stimulus

Discount rate

Reserve requirements

What is the Phillips curve?

A curve showing the relationship between inflation and unemployment

A curve showing the relationship between GDP and inflation

A curve showing the relationship between interest rates and investment

A curve showing the relationship between exchange rates and exports

Which of the following is a measure of income inequality?

GDP per capita

Gini coefficient

Inflation rate

Labor force participation rate

#10

What is the 'crowding out' effect in economics?

Increased government spending leads to lower private investment

Increased government spending leads to higher private investment

Increased government spending leads to higher inflation

Increased government spending leads to higher interest rates

#11

Which of the following is an example of automatic stabilizer?

Unemployment benefits

Discretionary spending

Tax cuts

Infrastructure projects

#12

What is the difference between fiscal policy and monetary policy?

Fiscal policy involves changing interest rates, while monetary policy involves changing government spending.

Fiscal policy involves changing government spending and taxation, while monetary policy involves changing interest rates and money supply.

Fiscal policy involves changing money supply, while monetary policy involves changing government spending.

Fiscal policy involves changing taxes, while monetary policy involves changing interest rates.

#13

Which of the following is a supply-side policy?

Increasing government spending on infrastructure

Reducing income taxes

Increasing unemployment benefits

Increasing minimum wage

#14

What is the Laffer curve?

A curve showing the relationship between tax rates and tax revenue