Macroeconomic Equilibrium and Factors Influencing it Quiz
Test your knowledge of macroeconomics with questions on AD, AS, fiscal policy, monetary policy, inflation, unemployment & more.
#1
What is the primary goal of macroeconomic policy?
Maximizing profits for businesses
Minimizing unemployment
Maximizing government revenue
Stabilizing the economy
#2
Which of the following is NOT a component of aggregate demand?
Consumption
Investment
Government spending
Foreign exchange rate
#3
What is the main tool used by central banks to influence the money supply?
Open market operations
Fiscal policy
Exchange rate policy
Trade policy
#4
Which of the following is NOT a tool of monetary policy?
Open market operations
Reserve requirement
Government spending
Discount rate
#5
What happens to the equilibrium level of income if there is an increase in autonomous consumption?
Equilibrium income decreases
Equilibrium income increases
Equilibrium income remains unchanged
It depends on other factors
#6
What effect will a decrease in the marginal propensity to consume (MPC) have on the multiplier effect?
Increase the multiplier effect
Decrease the multiplier effect
No effect on the multiplier effect
It depends on other factors
#7
What is the Phillips Curve relationship?
Positive relationship between inflation and unemployment
Negative relationship between inflation and unemployment
Positive relationship between inflation and GDP growth
Negative relationship between inflation and GDP growth
#8
Which of the following would cause a rightward shift in the aggregate supply curve?
Increase in government regulations
Increase in labor productivity
Decrease in technology
Decrease in the money supply
#9
In the AS-AD model, what is the result of an increase in the money supply?
Increase in output and decrease in price level
Decrease in output and increase in price level
Increase in both output and price level
Decrease in both output and price level
#10
What does the term 'crowding out' refer to in macroeconomics?
Increase in consumer spending
Decrease in government spending
Increase in investment spending
Decrease in private investment due to government borrowing
#11
According to Keynesian theory, which factor determines the level of aggregate demand?
Interest rates
Fiscal policy
Supply-side policies
Consumer preferences
#12
What is the name of the economic model that focuses on the long-run relationship between price levels and real output?
Keynesian model
IS-LM model
Monetarist model
Classical model
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