#1
Which of the following is a component of GDP?
Imports
Government spending
Interest payments
Savings
#2
What does CPI stand for in economics?
Consumer Profit Index
Consumer Price Inflation
Consumer Price Index
Consumer Product Index
#3
What is the term for the situation when the government's expenditures exceed its revenues?
Budget surplus
Budget deficit
Debt ceiling
Austerity
#4
What is the term for the percentage of the labor force that is unemployed?
Unemployment rate
Labor force participation rate
Inflation rate
Natural rate of unemployment
#5
Which of the following is a measure of economic growth?
Consumer Price Index
Gross Domestic Product
Gini coefficient
Unemployment rate
#6
What is the term for the situation when the economy is operating at its full employment level of output?
Cyclical unemployment
Structural unemployment
Frictional unemployment
Potential output
#7
Which of the following is a characteristic of inflation?
Decrease in the general level of prices
Stable prices over time
Rapid increase in the money supply
Decrease in the unemployment rate
#8
What does the Phillips curve show?
The relationship between inflation and unemployment
The relationship between investment and saving
The relationship between exports and imports
The relationship between interest rates and bond prices
#9
What is the equation for the quantity theory of money?
MV = PQ
MV = PT
MV = Y
MV = M2
#10
What is the relationship between the real interest rate and investment?
Inverse
Direct
No relationship
Cyclical
#11
Which of the following is a measure of income inequality?
Consumer Price Index
Gini coefficient
Consumer Confidence Index
Gross Domestic Product
#12
What is the term for the situation when the economy experiences a prolonged period of declining GDP and rising unemployment?
Expansion
Stagflation
Recession
Deflation
#13
What is the primary function of central banks in managing the economy?
To control fiscal policy
To regulate international trade
To control monetary policy
To oversee government spending
#14
Which of the following is a tool used by central banks to influence the money supply?
Fiscal policy
Open market operations
Trade policy
Supply-side policy
#15
What is the term for the situation when the economy experiences both high inflation and high unemployment?
Stagflation
Hyperinflation
Deflation
Recession
#16
What is the difference between fiscal policy and monetary policy?
Fiscal policy is controlled by central banks, while monetary policy is controlled by governments.
Fiscal policy involves changes in government spending and taxation, while monetary policy involves changes in the money supply and interest rates.
Fiscal policy involves changes in interest rates, while monetary policy involves changes in government spending and taxation.
There is no difference between fiscal policy and monetary policy.
#17
Which of the following is NOT a tool of monetary policy?
Open market operations
Discount rate
Taxation
Reserve requirements
#18
What is the term for the situation when the value of a currency decreases over time?
Appreciation
Depreciation
Devaluation
Revaluation
#19
Which of the following is NOT a measure of money supply?
#20
What is the term for the situation when the government deliberately reduces the value of its currency relative to other currencies?
Depreciation
Devaluation
Appreciation
Inflation