#1
Which of the following is a component of aggregate demand (AD) in macroeconomics?
Consumer spending
Government spending
Investment spending
All of the above
#2
What is the formula for calculating the unemployment rate?
Unemployment rate = (Unemployed / Labor force) * 100%
Unemployment rate = (Employed / Labor force) * 100%
Unemployment rate = (Labor force / Employed) * 100%
Unemployment rate = (Labor force / Population) * 100%
#3
Which of the following is a measure of income inequality?
Gini coefficient
Consumer Price Index (CPI)
Real GDP per capita
Unemployment rate
#4
What is the formula for calculating GDP (Gross Domestic Product)?
GDP = C + I + G + (X - M)
GDP = C + I + G
GDP = C + I
GDP = C + G + (X - M)
#5
What is the primary function of the Federal Reserve in the United States?
Fiscal policy
Monetary policy
Supply-side policy
Trade policy
#6
Which of the following is a characteristic of a recession?
Rising consumer spending
Decreasing unemployment rate
Negative GDP growth
Increasing investment
#7
What is the equation for calculating aggregate demand (AD) in an economy?
AD = C + I + G + (X - M)
AD = C + I + G
AD = C + I
AD = C + G + (X - M)
#8
What does the aggregate supply curve represent in macroeconomics?
The relationship between price level and real GDP supplied
The relationship between price level and aggregate demand
The relationship between interest rates and investment
The relationship between exports and imports
#9
Which of the following is NOT a determinant of aggregate supply?
Input prices
Technological progress
Government regulations
Consumer preferences
#10
What is the primary tool used by central banks to influence aggregate demand in an economy?
Fiscal policy
Monetary policy
Supply-side policy
Trade policy
#11
What effect does an increase in aggregate demand have on the price level and real GDP in the short run?
Price level increases; real GDP decreases
Price level decreases; real GDP increases
Price level and real GDP both increase
Price level and real GDP both decrease
#12
Which of the following is an example of fiscal policy?
The Federal Reserve adjusts interest rates
The government increases spending on infrastructure
The central bank conducts open market operations
The government decreases the reserve requirement
#13
In the long run, the aggregate supply curve is usually:
Vertical
Horizontal
Upward sloping
Downward sloping
#14
Which of the following scenarios would cause a rightward shift of the aggregate demand curve?
An increase in taxes
A decrease in government spending
A decrease in interest rates
An increase in imports
#15
Which of the following best describes the Phillips curve?
A curve showing the relationship between inflation and unemployment
A curve showing the relationship between interest rates and investment
A curve showing the relationship between income and consumption
A curve showing the relationship between saving and investment
#16
What does the term 'crowding out' refer to in macroeconomics?
A situation where government spending increases private investment
A situation where government borrowing reduces private sector borrowing
A situation where government intervention stabilizes the economy
A situation where government subsidies promote private sector growth
#17
What does the term 'stagflation' refer to?
A situation of high inflation and high unemployment
A situation of low inflation and low unemployment
A situation of high inflation and low unemployment
A situation of low inflation and high unemployment
#18
Which of the following is an example of an automatic stabilizer in fiscal policy?
Government subsidies for agriculture
Unemployment insurance benefits
Discretionary spending on infrastructure projects
Tax cuts targeted at specific industries