#1
What does GDP stand for in economics?
General Distribution Process
Gross Domestic Product
Government Development Plan
Global Demand Projection
#2
Which of the following is NOT a component of GDP?
Consumption
Investment
Imports
Government Spending
#3
Which of the following is a component of Gross Domestic Product (GDP)?
Government spending
Imports
Private saving
Corporate profits
#4
What does the Consumer Price Index (CPI) measure?
Inflation
Unemployment
Interest rates
Economic growth
#5
What is the formula to calculate the unemployment rate?
Number of unemployed / Labor force
Number of employed / Labor force
Number of employed / Population
Number of unemployed / Population
#6
What is the term for a situation where the economy's overall price level is rising?
Recession
Deflation
Stagflation
Inflation
#7
Which of the following is NOT a tool of fiscal policy?
Government Spending
Taxation
Open Market Operations
Transfer Payments
#8
Which of the following is a tool of expansionary monetary policy?
Decreasing the reserve requirement
Increasing taxes
Selling government securities
Decreasing government spending
#9
What is the term used to describe a situation where the economy's output is less than potential output?
Recessionary gap
Inflationary gap
Stagflation
Fiscal gap
#10
In the IS-LM model, what does the LM curve represent?
Equilibrium in the goods market
Equilibrium in the money market
The relationship between income and investment
The relationship between income and consumption
#11
What is the term for a situation where the unemployment rate is very low, and wages are rising quickly?
Stagflation
Deflation
Hyperinflation
Full Employment Inflation
#12
Which of the following is an example of automatic stabilizers in fiscal policy?
Unemployment insurance
Discretionary spending
Infrastructure projects
Tax cuts
#13
What does the term 'crowding out' refer to in economics?
The reduction in private sector borrowing due to government borrowing
The increase in investment due to a decrease in interest rates
The decrease in government spending due to increased tax revenue
The increase in government spending due to higher tax revenue
#14
What is the term used to describe a situation where the government's expenditures exceed its revenues?
Budget surplus
Budget deficit
National debt
Trade deficit
#15
In the context of the Phillips Curve, what does the long-run Phillips Curve suggest?
There is a trade-off between inflation and unemployment in the long run
There is no trade-off between inflation and unemployment in the long run
There is a permanent trade-off between inflation and unemployment
There is a permanent trade-off between inflation and real wages