#1
Which economic theory argues that markets tend towards equilibrium through the interaction of supply and demand?
Keynesian economics
Monetarism
Classical economics
Austrian economics
#2
What does GDP stand for in the context of economics?
Gross Domestic Product
Global Development Policy
Government Debt Percentage
Growth and Development Patterns
#3
Which of the following is a tool of monetary policy used by central banks to control the money supply?
Fiscal stimulus
Discount rate
Corporate tax cuts
Public spending
#4
Which of the following is a primary goal of fiscal policy?
Maintaining price stability
Regulating the money supply
Maximizing corporate profits
Stabilizing economic growth
#5
Which of the following is a key characteristic of a recession?
Rapid economic growth
High levels of unemployment
Low inflation rates
Increase in consumer spending
#6
Which economist is often associated with the theory of 'supply-side economics'?
John Maynard Keynes
Milton Friedman
Adam Smith
Arthur Laffer
#7
According to classical economics, what is the primary driver of economic growth?
Government intervention
Consumer spending
Technological innovation
Monetary policy
#8
What does the Phillips Curve illustrate in macroeconomics?
The relationship between inflation and unemployment
The relationship between GDP and interest rates
The impact of government spending on economic growth
The behavior of consumer prices over time
#9
Which of the following is NOT a component of aggregate demand?
Consumption
Government spending
Imports
Wages
#10
What is the main goal of expansionary fiscal policy?
Reduce government spending
Stimulate economic growth
Decrease the money supply
Control inflation
#11
In fiscal policy, what does contractionary policy aim to do?
Stimulate economic growth
Reduce inflation
Increase government spending
Reduce government spending and decrease the money supply
#12
Which economist is associated with the concept of 'rational expectations' in macroeconomics?
John Maynard Keynes
Milton Friedman
Paul Samuelson
Robert Lucas
#13
According to the 'Quantity Theory of Money', what is the relationship between money supply and prices?
Inverse
Direct
Non-existent
Indirect