#1
Which of the following is a macroeconomic variable?
Individual's income
Price of a specific good
Household savings
National unemployment rate
#2
What role does the government play in managing the external sector of the economy?
Controlling inflation
Managing fiscal policy
Implementing trade policies
Regulating monetary policy
#3
Which economic concept refers to the situation where the total output in an economy reaches its maximum potential?
Recession
Inflation
Full employment
Stagnation
#4
Which economic theory suggests that government intervention is necessary to stabilize the economy?
Monetarism
Classical economics
Keynesian economics
Supply-side economics
#5
According to classical economics, what is the best way to address economic downturns?
Government intervention
Increasing taxes
Reducing government spending
Expansionary monetary policy
#6
What is Gross Domestic Product (GDP) used to measure?
Individual income
National economic output
Inflation rate
Corporate profits
#7
Which economic variable is often used as an indicator of a country's economic health?
Consumer debt
Government expenditure
Consumer Price Index (CPI)
Trade balance
#8
Which of the following is an example of fiscal policy?
Central bank adjusting interest rates
Government increasing public spending
Commercial banks issuing loans
Foreign exchange market intervention
#9
What is the relationship between the money supply and inflation, according to the Quantity Theory of Money?
Inverse relationship
No relationship
Positive relationship
Causation cannot be determined
#10
What is the primary objective of monetary policy?
Stimulating economic growth
Ensuring price stability
Regulating international trade
Balancing the government budget
#11
In the context of exchange rates, what does the term 'depreciation' mean?
An increase in the value of a currency
A decrease in the value of a currency
Stabilization of currency value
Conversion of currency to gold standard
#12
What is the primary focus of supply-side economics?
Stimulating demand through government spending
Addressing income inequality
Boosting economic growth by enhancing production
Regulating financial markets
#13
What does the term 'stagflation' refer to in macroeconomics?
Rapid economic growth
High inflation combined with high unemployment
Steady decline in prices
Rapid decrease in GDP
#14
In macroeconomics, what does the Phillips Curve illustrate?
Relationship between inflation and unemployment
Supply and demand of goods and services
Interest rate fluctuations
Government fiscal policy
#15
Which tool does a central bank primarily use to control the money supply in an economy?
Open market operations
Fiscal policy
Currency exchange rates
Commercial bank regulations
#16
What is the significance of the natural rate of unemployment in macroeconomics?
It represents full employment in an economy
It indicates the rate of unemployment during a recession
It is synonymous with structural unemployment
It measures frictional unemployment only
#17
Which of the following is an example of an automatic stabilizer in fiscal policy?
Discretionary spending
Unemployment benefits
Corporate tax cuts
Infrastructure investments
#18
What is the Laffer Curve used to illustrate in economic theory?
Relationship between inflation and unemployment
Optimal tax rate for maximizing government revenue
Trade imbalances in the global market
Impact of interest rates on consumption
#19
What role does the central bank play in controlling inflation?
Setting fiscal policy
Regulating interest rates
Managing trade agreements
Controlling government spending