#1
Which of the following is a determinant of aggregate demand?
Consumer spending
Government regulation
Interest rates
Income distribution
#2
Which of the following is NOT a determinant of aggregate supply?
Technological advancements
Resource prices
Government policies
Market expectations
#3
Which of the following is a component of aggregate demand?
Government spending
Consumer debt
Foreign exchange reserves
Household savings
#4
What does the term 'sticky wages' refer to in macroeconomics?
Wages that adjust quickly to changes in the economy
Wages that remain constant despite changes in the economy
Wages that fluctuate with inflation rates
Wages that are determined by government regulations
#5
What is the primary function of the Federal Reserve System in the United States?
Fiscal policy implementation
Control of the money supply
Determination of tax rates
Regulation of international trade
#6
Which of the following is a tool of monetary policy used by central banks to influence the money supply?
Fiscal stimulus
Open market operations
Tariff imposition
Minimum wage laws
#7
In macroeconomics, what does the 'Phillips curve' illustrate?
The relationship between inflation and unemployment
The impact of fiscal policy on aggregate demand
The relationship between interest rates and investment
The impact of exchange rates on international trade
#8
Which of the following is a shift factor of the long-run aggregate supply curve?
Changes in resource prices
Technological advancements
Expectations about future prices
Government taxation policies
#9
Which of the following is a component of potential GDP?
Frictional unemployment
Structural unemployment
Cyclical unemployment
Full employment output
#10
What effect does an increase in the money supply have on aggregate demand?
Decreases aggregate demand
Has no effect on aggregate demand
Increases aggregate demand
Shifts aggregate supply
#11
What is the relationship between the unemployment rate and aggregate demand in the short run, according to Keynesian economics?
Inverse relationship
Direct relationship
No relationship
Negative relationship
#12
What impact does an increase in government spending have on aggregate demand?
Increases aggregate demand
Decreases aggregate demand
No impact on aggregate demand
Shifts aggregate supply
#13
According to the Keynesian theory, what can cause an economy to experience a recessionary gap?
Aggregate supply exceeding aggregate demand
Aggregate demand exceeding aggregate supply
Inflationary pressures
Government intervention
#14
According to the quantity theory of money, if the money supply increases while the velocity of money and real output remain constant, what will happen to the price level?
Decrease
Remain constant
Increase
Cannot be determined
#15
What is the primary objective of expansionary fiscal policy during a recession?
Stimulating economic growth
Reducing inflation
Stabilizing exchange rates
Encouraging imports
#16
According to the Solow growth model, what determines the long-run rate of economic growth in an economy?
Technological progress
Government intervention
Cyclical fluctuations
Interest rates
#17
According to the concept of the 'Laffer curve', what is the relationship between tax rates and tax revenue?
As tax rates increase, tax revenue always increases
As tax rates increase, tax revenue initially increases, then decreases beyond a certain point
As tax rates increase, tax revenue always decreases
Tax rates have no impact on tax revenue