#1
Which of the following is a component of GDP?
Government spending
Exports
Imports
All of the above
#2
What is the formula for calculating GDP?
GDP = C + I + G + (X - M)
GDP = C + I + G - (X - M)
GDP = C - I + G + (X - M)
GDP = C + I - G + (X - M)
#3
What is the difference between nominal GDP and real GDP?
Nominal GDP is adjusted for inflation, while real GDP is not.
Real GDP is adjusted for inflation, while nominal GDP is not.
Nominal GDP includes only goods and services produced domestically, while real GDP includes imports and exports.
Real GDP includes only goods and services produced domestically, while nominal GDP includes imports and exports.
#4
What is the formula for the unemployment rate?
Unemployment Rate = (Number of Employed / Labor Force) x 100%
Unemployment Rate = (Number of Unemployed / Labor Force) x 100%
Unemployment Rate = (Number of Employed / Population) x 100%
Unemployment Rate = (Number of Unemployed / Population) x 100%
#5
Which of the following is a characteristic of a recession?
Rising GDP growth
Decreasing unemployment rates
Declining consumer spending
Increasing investment levels
#6
Which of the following is an example of expansionary fiscal policy?
Decreasing government spending
Decreasing taxes
Increasing taxes
Increasing government spending
#7
What does the term 'stagflation' refer to?
High inflation accompanied by low unemployment
Low inflation accompanied by high unemployment
High inflation accompanied by economic stagnation
Low inflation accompanied by economic growth
#8
Which of the following is a tool used by central banks to control the money supply?
Fiscal policy
Monetary policy
Supply-side policy
Trade policy
#9
What does the term 'liquidity trap' refer to in macroeconomics?
A situation where interest rates are very high, leading to a decrease in investment
A situation where interest rates are very low, leading to a decrease in consumer spending
A situation where monetary policy becomes ineffective because interest rates are already very low
A situation where inflation is high, leading to a decrease in purchasing power
#10
Which of the following is NOT a component of aggregate demand?
Consumption
Investment
Government spending
Imports
#11
What is the difference between fiscal policy and monetary policy?
Fiscal policy involves changing interest rates to influence economic activity, while monetary policy involves changes in government spending and taxation.
Fiscal policy involves changes in government spending and taxation to influence economic activity, while monetary policy involves changing interest rates.
Fiscal policy and monetary policy are two terms for the same economic concept.
Fiscal policy involves changing exchange rates to influence economic activity, while monetary policy involves changes in government spending.
#12
What does the term 'crowding out' refer to in economics?
A situation where government spending crowds out private investment
A situation where private investment crowds out government spending
A situation where increased government spending leads to decreased interest rates
A situation where increased government spending leads to increased interest rates
#13
What is the 'Phillips curve'?
A curve showing the relationship between inflation and unemployment
A curve showing the relationship between GDP and unemployment
A curve showing the relationship between interest rates and investment
A curve showing the relationship between GDP and inflation
#14
What is the formula for the multiplier effect in economics?
Multiplier = 1 / (1 - MPC)
Multiplier = 1 / MPS
Multiplier = 1 + MPC
Multiplier = 1 + MPS
#15
What is the equation of the aggregate supply curve in the short run?
Y = C + I + G + (X - M)
Y = C + I + G - (X - M)
Y = A + BT
Y = AS
#16
What is the equation of the money multiplier?
Money Multiplier = 1 / (1 - Reserve Ratio)
Money Multiplier = 1 + Reserve Ratio
Money Multiplier = Reserve Ratio / (1 - Reserve Ratio)
Money Multiplier = Reserve Ratio / 1
#17
What is the Laffer Curve used to illustrate?
The relationship between tax rates and tax revenue
The relationship between inflation and unemployment
The relationship between interest rates and investment
The relationship between GDP and consumption
#18
What is the formula for calculating the unemployment rate using the labor force participation rate?
Unemployment Rate = (Number of Employed / Labor Force Participation Rate) x 100%
Unemployment Rate = (Number of Unemployed / Labor Force Participation Rate) x 100%
Unemployment Rate = (Number of Employed / Labor Force) x 100%
Unemployment Rate = (Number of Unemployed / Labor Force) x 100%