#1
Which of the following is a component of aggregate demand (AD)?
Government spending
Consumer price index
Labor force participation rate
Stock market index
#2
What is the primary tool used by central banks to influence the money supply?
Fiscal policy
Monetary policy
Supply-side policy
Trade policy
#3
What is the term for the situation in which the economy's output is equal to its potential output?
Full employment equilibrium
Recessionary gap
Inflationary gap
Deflationary equilibrium
#4
What is the name of the market where final goods and services are bought and sold?
Labor market
Financial market
Product market
Stock market
#5
What does the term 'ceteris paribus' mean in economics?
All other things being equal
All things being constant
All things being different
All other things being different
#6
Which of the following is not a determinant of aggregate demand (AD)?
Consumer confidence
Government policies
Price level
Technology
#7
What is the name of the measure that represents the total value of all final goods and services produced within a country's borders in a specific time period?
Gross National Product (GNP)
Net Domestic Product (NDP)
Gross Domestic Product (GDP)
National Income (NI)
#8
What happens when planned investment exceeds planned saving in the economy?
The economy is in equilibrium
The economy experiences a recession
The economy experiences inflation
The economy experiences a surplus
#9
In the aggregate demand-aggregate supply (AD-AS) model, what happens to the price level and real output in the short run if aggregate demand increases?
Price level decreases, real output increases
Price level decreases, real output decreases
Price level increases, real output increases
Price level increases, real output decreases
#10
What is the formula for the marginal propensity to consume (MPC)?
Change in consumption / Change in income
Change in income / Change in consumption
Change in investment / Change in consumption
Change in consumption / Total consumption
#11
Which of the following is a measure of income inequality?
Consumer Price Index (CPI)
Gini coefficient
Gross Domestic Product (GDP)
Consumer Confidence Index (CCI)
#12
Which of the following is not a tool of fiscal policy?
Government spending
Taxation
Open market operations
Transfer payments
#13
Which of the following is considered an automatic stabilizer in fiscal policy?
Unemployment insurance
Discretionary spending
Tax cuts
Infrastructure investment
#14
What effect does an increase in the reserve requirement have on the money supply?
It increases the money supply
It decreases the money supply
It has no effect on the money supply
It depends on other factors
#15
According to the Phillips curve, what is the relationship between inflation and unemployment?
There is no relationship between inflation and unemployment
There is a positive relationship
There is a negative relationship
There is a linear relationship