#1
Which of the following is a measure of the total output of an economy?
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Unemployment Rate
Inflation Rate
#2
What is the term used to describe the situation where the overall price level is rising?
Deflation
Hyperinflation
Recession
Inflation
#3
What is the term for the rate at which the general level of prices for goods and services is rising?
Deflation
Hyperinflation
Stagflation
Inflation
#4
Which of the following best describes the role of the Federal Reserve in the United States?
Setting fiscal policy
Regulating the stock market
Conducting monetary policy
Managing international trade agreements
#5
What is the primary objective of monetary policy?
Stabilizing exchange rates
Maximizing government revenue
Controlling inflation and promoting economic growth
Regulating consumer spending
#6
What is the term for a situation where the government spends more money than it receives in revenue?
Budget surplus
Budget deficit
National debt
Fiscal stimulus
#7
What is the main tool used by central banks to implement monetary policy?
Fiscal policy
Discount rate
Open market operations
Quantitative easing
#8
What does expansionary monetary policy aim to achieve?
Decrease money supply to control inflation
Stabilize interest rates
Increase government spending
Stimulate economic growth
#9
What is the Phillips curve used to illustrate?
The relationship between inflation and unemployment
The relationship between interest rates and GDP growth
The impact of government spending on economic growth
The effect of taxes on consumer behavior
#10
Which of the following is an example of expansionary fiscal policy?
Cutting government spending
Raising taxes
Decreasing the money supply
Increasing government spending
#11
Which of the following is a tool of monetary policy used to regulate the money supply?
Discount rate
Sales tax
Income tax
Property tax
#12
In the context of monetary policy, what does the term 'tightening' refer to?
Decreasing interest rates
Increasing the money supply
Reducing government spending
Raising interest rates or reducing the money supply
#13
Which of the following is a characteristic of a contractionary monetary policy?
Decrease in interest rates
Increase in government spending
Open market purchases of securities
Increase in reserve requirements
#14
What is the term for a situation where the economy experiences a prolonged period of high inflation combined with high unemployment and stagnant demand?
Inflation
Deflation
Hyperinflation
Stagflation
#15
What is the role of the central bank in controlling inflation?
Increasing government spending
Raising interest rates
Decreasing the money supply
Implementing expansionary fiscal policy
#16
What is the term for a situation where there is a sustained decrease in the general price level of goods and services in an economy?
Inflation
Hyperinflation
Deflation
Stagflation
#17
Which of the following best describes the money multiplier?
The ratio of currency in circulation to the total money supply
The ratio of the central bank's reserves to the money supply
The ratio of the change in money supply to the change in interest rates
The ratio of the change in money supply to the change in government spending