#1
Which of the following is a key macroeconomic indicator?
Consumer Price Index (CPI)
ExplanationCPI measures changes in the price level of consumer goods and services.
#2
Gross Domestic Product (GDP) is a measure of:
Total value of goods and services produced within a country in a specific time period
ExplanationGDP quantifies a country's economic output within a set timeframe.
#3
What does the term 'Inflation' refer to in macroeconomics?
Increase in the overall price level of goods and services
ExplanationInflation indicates a general rise in prices over time.
#4
What is the relationship between nominal GDP and real GDP?
Nominal GDP includes inflation, while real GDP adjusts for inflation
ExplanationNominal GDP is adjusted for inflation to derive real GDP.
#5
Which of the following is a lagging economic indicator?
Unemployment rate
ExplanationLagging indicators confirm trends after they've occurred.
#6
What is the meaning of the term 'Liquidity' in the context of macroeconomics?
Ability to convert assets into cash quickly without significant loss
ExplanationLiquidity measures the ease of converting assets into cash.
#7
The unemployment rate is calculated as the percentage of:
Labor force that is unemployed
ExplanationUnemployment rate measures the portion of the workforce without jobs.
#8
Which of the following is an example of fiscal policy?
Government increasing public spending
ExplanationFiscal policy involves government manipulation of spending and taxation.
#9
What does the term 'Trade Balance' represent in macroeconomics?
Difference between exports and imports of goods and services
ExplanationTrade balance reflects the net value of a country's exports and imports.
#10
Which of the following is a component of the Aggregate Demand (AD) curve?
Consumer spending
ExplanationConsumer spending is a significant factor in aggregate demand.
#11
What is the Phillips Curve used to analyze in macroeconomics?
Relationship between inflation and unemployment
ExplanationPhillips Curve explores the inverse relationship between inflation and unemployment.