#1
Which of the following is considered a measure of a country's economic output?
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Producer Price Index (PPI)
Consumer Confidence Index (CCI)
#2
In economics, what does 'Ceteris Paribus' mean?
All other things being unequal
All other things being constant
All other things being considered
All other things being relevant
#3
What does the term 'Fiscal Policy' refer to in macroeconomics?
The management of money supply by central banks
Government policy related to taxation and spending
The regulation of interest rates by monetary authorities
A policy aimed at controlling inflation
#4
Which of the following best describes 'Monetary Policy'?
The use of government spending and taxation to influence the economy
A policy aimed at regulating the money supply and interest rates
A policy aimed at reducing unemployment through public works projects
The regulation of international trade and exchange rates
#5
According to the theory of the business cycle, which phase follows a recession?
Expansion
Peak
Trough
Contraction
#6
What does the term 'Trade Surplus' refer to in macroeconomics?
A situation where a country exports more goods than it imports
A situation where a country imports more goods than it exports
A situation where a country's exports and imports are balanced
A situation where a country's trade deficit decreases
#7
What does the term 'Inflation' refer to in macroeconomics?
A decrease in the general price level of goods and services
A situation where the economy experiences a decline in production
An increase in the general price level of goods and services
A situation where the economy experiences low consumer spending
#8
Which of the following is NOT a component of Aggregate Demand (AD) in macroeconomics?
Consumption (C)
Investment (I)
Government spending (G)
Imports (M)
#9
What is the Phillips Curve in macroeconomics?
A curve showing the relationship between unemployment and inflation
A curve showing the relationship between interest rates and inflation
A curve showing the relationship between government spending and GDP growth
A curve showing the relationship between exchange rates and trade balance
#10
What is the primary tool used by central banks to conduct monetary policy?
Fiscal policy
Open market operations
Government spending
Taxation
#11
Which of the following is a goal of fiscal policy?
Stabilizing employment levels
Maintaining price stability
Regulating the money supply
Controlling inflation expectations
#12
What does the term 'Laffer Curve' represent in macroeconomics?
A curve showing the relationship between government spending and inflation
A curve showing the relationship between tax rates and government revenue
A curve showing the relationship between interest rates and economic growth
A curve showing the relationship between exchange rates and trade balance
#13
According to Keynesian economics, what is the role of government in stabilizing the economy during a recession?
Decrease government spending
Increase taxes
Decrease interest rates
Increase government spending
#14
What is the Quantity Theory of Money in macroeconomics?
A theory stating that the money supply directly affects the price level
A theory stating that the quantity of goods and services produced directly affects the money supply
A theory stating that the velocity of money directly affects the money supply
A theory stating that the interest rate directly affects the money supply
#15
What does the term 'Crowding Out' refer to in macroeconomics?
A situation where private investment increases due to government spending
A situation where government spending crowds out private investment
A situation where government spending leads to a decrease in taxes
A situation where government spending leads to an increase in interest rates
#16
Which of the following is a characteristic of classical economics?
Belief in government intervention in markets
Emphasis on supply-side policies
Advocacy for deficit spending during recessions
Focus on demand-side policies
#17
What is the 'Multiplier Effect' in macroeconomics?
The effect of an initial change in expenditure on aggregate demand, leading to a larger final increase in national income
The effect of an initial change in government spending on the unemployment rate
The effect of an initial change in taxation on consumer spending
The effect of an initial change in interest rates on investment
#18
What does the term 'Liquidity Trap' refer to in macroeconomics?
A situation where interest rates are very high
A situation where monetary policy is ineffective due to very low interest rates
A situation where inflation rates exceed the target
A situation where fiscal policy is contractionary