#1
What is the main indicator used to measure macroeconomic equilibrium?
Gross Domestic Product (GDP)
ExplanationTotal monetary value of all goods and services produced.
#2
Which of the following is a characteristic of macroeconomic equilibrium?
Low inflation and low unemployment
ExplanationStable prices and high employment.
#3
In macroeconomics, what does the term 'equilibrium' refer to?
A state where aggregate demand equals aggregate supply
ExplanationBalanced state of total demand and supply.
#4
What effect does an increase in government spending typically have on macroeconomic equilibrium?
Increases aggregate demand
ExplanationBoosts total demand for goods and services.
#5
What is the significance of the Keynesian cross diagram in macroeconomics?
It demonstrates the determination of equilibrium output
ExplanationGraphical representation of spending and output.
#6
What role does the Federal Reserve play in maintaining macroeconomic equilibrium?
Managing monetary policy
ExplanationControl over money supply and interest rates.
#7
What is the primary goal of monetary policy in achieving macroeconomic equilibrium?
To control inflation
ExplanationStabilizing price levels to avoid excessive rise.
#8
Which of the following is a factor that can disrupt macroeconomic equilibrium?
Fiscal policy
ExplanationGovernment's revenue and spending decisions.
#9
Which of the following best describes the concept of 'dynamic equilibrium' in macroeconomics?
A situation where there is continuous change but overall balance is maintained
ExplanationConstant adjustments while maintaining stability.
#10
What is the role of the Phillips curve in understanding macroeconomic equilibrium?
It illustrates the trade-off between inflation and unemployment
ExplanationRelationship between joblessness and price levels.
#11
Which of the following scenarios is most likely to lead to a recession in macroeconomic equilibrium?
An increase in aggregate demand coupled with supply shortages
ExplanationExcessive demand without sufficient supply.
#12
Which of the following best describes the concept of 'stagflation' in macroeconomics?
High inflation and high unemployment occurring simultaneously
ExplanationDouble trouble of rising prices and joblessness.