#1
Which of the following is considered a lagging economic indicator?
Gross Domestic Product (GDP)
Unemployment rate
Consumer Price Index (CPI)
Stock market indices
#2
What does GDP stand for in the context of macroeconomics?
General Domestic Product
Gross Dollar Production
Gross Domestic Product
General Dollar Production
#3
Which economic concept is represented by the total value of goods and services produced within a country's borders in a specific time period?
Net Exports
Gross National Product (GNP)
Gross Domestic Product (GDP)
Net National Product (NNP)
#4
Which entity is responsible for conducting monetary policy in the United States?
U.S. Department of the Treasury
Federal Reserve System
U.S. Congress
Internal Revenue Service (IRS)
#5
In macroeconomics, what is the term for the total market value of all final goods and services produced within a country in a specific time period?
Gross National Product (GNP)
Net Domestic Product (NDP)
Gross Domestic Product (GDP)
Net National Product (NNP)
#6
Which fiscal policy tool involves increasing government spending or reducing taxes to stimulate economic growth?
Monetary policy
Expansionary fiscal policy
Contractionary fiscal policy
Supply-side policy
#7
In macroeconomics, what is the formula for the unemployment rate?
Number of employed / Labor force
Number of unemployed / Labor force
Number of unemployed / Number of employed
Labor force / Number of employed
#8
Which economic indicator measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services?
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Producer Price Index (PPI)
Retail Sales Index (RSI)
#9
What is the primary goal of contractionary fiscal policy?
To reduce inflation
To increase government spending
To stimulate economic growth
To decrease interest rates
#10
What is the main objective of fiscal policy?
Stabilizing the money supply
Controlling inflation
Stimulating economic growth and stability
Managing exchange rates
#11
What is the primary purpose of government bonds in fiscal policy?
To control inflation
To finance government spending
To regulate interest rates
To stabilize exchange rates
#12
What is the purpose of the Phillips curve in macroeconomic analysis?
To analyze the relationship between inflation and unemployment
To measure the GDP growth rate
To predict stock market movements
To study consumer spending patterns
#13
What is the relationship between the interest rate and investment, according to classical economic theory?
Inverse relationship
Positive relationship
No relationship
Exponential relationship
#14
Which of the following is an automatic stabilizer in fiscal policy?
Unemployment benefits
Corporate tax cuts
Infrastructure spending
Interest rate adjustments
#15
What does the term 'crowding out' refer to in the context of fiscal policy?
Increased government spending leading to higher interest rates and reduced private investment
Decreased government spending causing a rise in private investment
Expansionary fiscal policy leading to economic growth
A decrease in consumer spending due to rising interest rates
#16
In macroeconomics, what is the significance of the multiplier effect?
It measures the impact of changes in the money supply on inflation
It explains how changes in government spending or investment can lead to larger changes in economic output
It measures the relationship between interest rates and investment
It predicts the impact of changes in the exchange rate on trade balances
#17
In the context of fiscal policy, what is the difference between a progressive tax and a regressive tax?
A progressive tax takes a higher percentage of income from high-income earners, while a regressive tax takes a higher percentage from low-income earners.
A progressive tax takes a higher percentage of income from low-income earners, while a regressive tax takes a higher percentage from high-income earners.
Both progressive and regressive taxes take an equal percentage of income from all income groups.
Progressive and regressive taxes have no impact on income levels.