#1
What does GDP stand for in economics?
Gross Domestic Profit
Gross Domestic Product
General Domestic Production
General Domestic Profit
#2
What is the primary goal of monetary policy?
Stabilize prices and control inflation
Maximize employment and economic growth
Promote international trade
Control government spending
#3
What is the difference between fiscal policy and monetary policy?
Fiscal policy is controlled by the central bank, while monetary policy is controlled by the government.
Fiscal policy involves changes in interest rates, while monetary policy involves changes in government spending and taxation.
Fiscal policy involves changes in government spending and taxation, while monetary policy involves changes in interest rates.
There is no difference between fiscal policy and monetary policy.
#4
What is the difference between monetary base and money supply?
Monetary base includes only physical currency, while money supply includes physical and digital forms of money.
Money supply includes only physical currency, while monetary base includes physical and digital forms of money.
Monetary base includes both physical and digital forms of money, while money supply includes only physical currency.
There is no difference between monetary base and money supply.
#5
What is the difference between classical economics and Keynesian economics?
Classical economics focuses on government intervention, while Keynesian economics emphasizes a hands-off approach.
Classical economics emphasizes a hands-off approach, while Keynesian economics focuses on government intervention.
There is no difference between classical economics and Keynesian economics.
Classical economics focuses on microeconomics, while Keynesian economics focuses on macroeconomics.
#6
Which of the following is NOT included in the calculation of GDP?
Government spending
Investment in stocks
Consumption spending
Net exports
#7
What is the formula for calculating GDP?
GDP = Consumption + Investment + Government Spending + Net Exports
GDP = Consumption - Investment - Government Spending - Net Exports
GDP = Consumption x Investment x Government Spending x Net Exports
GDP = Consumption / Investment / Government Spending / Net Exports
#8
In macroeconomics, what does the term 'inflation' refer to?
Decrease in the overall level of prices
Steady state of prices
Increase in the overall level of prices
No change in prices
#9
Which of the following is an example of a leading economic indicator?
Unemployment rate
Consumer price index (CPI)
Stock market performance
GDP growth rate
#10
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 - Number of unemployed
Unemployment rate = Labor force / Number of employed
#11
In the Solow growth model, what does the steady-state level of capital represent?
The highest possible level of capital accumulation
The level of capital where there is no further growth
The initial level of capital in an economy
The level of capital with the highest rate of return
#12
Which of the following is a component of the expenditure approach to calculating GDP?
Wages and salaries
Rental income
Net exports
Interest income
#13
What is the difference between nominal GDP and real GDP?
Nominal GDP includes inflation, while real GDP does not.
Real GDP includes inflation, while nominal GDP does not.
Nominal GDP is adjusted for inflation, while real GDP is not.
Real GDP is adjusted for inflation, while nominal GDP is not.
#14
What is the Phillips Curve used to illustrate in macroeconomics?
The relationship between inflation and unemployment
The relationship between interest rates and investment
The impact of taxes on government revenue
The relationship between exchange rates and trade balance
#15
What is the role of the Federal Reserve in the United States?
Fiscal policy implementation
Monetary policy implementation
Trade regulation
Tax collection
#16
Which of the following is an example of an automatic stabilizer in fiscal policy?
Discretionary spending
Unemployment benefits
Corporate tax cuts
Infrastructure projects
#17
What is the concept of the multiplier effect in economics?
The tendency of prices to multiply during inflation
The impact of an initial change in spending on overall economic activity
The effect of taxes on consumer spending
The relationship between interest rates and investment