#1
Which of the following is a measure of a country's overall economic performance?
Microeconomic indicators
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Unemployment rate
#2
What is the role of the Federal Reserve in controlling money supply in the United States?
Implementing fiscal policy
Controlling interest rates
Conducting open market operations
Regulating international trade
#3
What is the primary goal of monetary policy?
Stabilizing inflation
Increasing government spending
Promoting international trade
Controlling fiscal deficits
#4
What does the term 'stagflation' refer to in macroeconomics?
A period of high inflation and economic growth
A situation with low inflation and economic stagnation
A combination of high inflation and economic stagnation
A period of low inflation and economic growth
#5
In the IS-LM model, what does the 'LM' curve represent?
Investment and Saving
Liquidity preference and Money supply
Income and Spending
Interest rate and Investment
#6
What is the significance of the natural rate of unemployment in macroeconomics?
It represents the level of unemployment in a recession
It is the minimum sustainable rate of unemployment in the long run
It indicates the rate of unemployment during economic boom periods
It measures the frictional unemployment in an economy
#7
In the context of fiscal policy, what does 'crowding out' refer to?
Increased private investment due to government spending
Decreased private investment due to increased government borrowing
Higher interest rates resulting from government expenditure
Increased consumer spending leading to a decrease in government spending
#8
In the context of the business cycle, what characterizes the contraction phase?
Rising GDP and low unemployment
Falling GDP and rising unemployment
Stable GDP and low inflation
Falling GDP and low inflation
#9
According to the Phillips curve, what is the trade-off relationship between inflation and unemployment?
There is a positive trade-off
There is a negative trade-off
There is no trade-off
There is an inverse trade-off
#10
What is the concept of the 'Laffer curve' in macroeconomics?
A curve illustrating the relationship between inflation and unemployment
A curve showing the relationship between tax rates and government revenue
A curve depicting the relationship between interest rates and investment
A curve indicating the trade balance between exports and imports
#11
According to the quantity theory of money, what is the relationship between the money supply and inflation?
Inverse relationship
Positive relationship
No relationship
Non-monotonic relationship
#12
What is the concept of the 'Multiplier Effect' in macroeconomics?
The increase in government spending leading to a decrease in overall output
The magnification of changes in spending through the economy
The decrease in investment resulting from an increase in interest rates
The decrease in consumption due to inflation
#13
What is the Phillips curve's long-run implication for the trade-off between inflation and unemployment?
There is a permanent trade-off
There is no long-run trade-off
The trade-off reverses in the long run
There is a constant trade-off