#1
What does GDP stand for in economics?
Gross Domestic Product
ExplanationMeasurement of a country's economic output.
#2
What is the primary goal of monetary policy?
Stabilize prices and control inflation
ExplanationMaintaining price stability.
#3
What is the difference between fiscal policy and monetary policy?
Fiscal policy involves changes in government spending and taxation, while monetary policy involves changes in interest rates.
ExplanationTwo different approaches to economic management.
#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.
ExplanationDifferent measures of money in an economy.
#5
What is the difference between classical economics and Keynesian economics?
Classical economics emphasizes a hands-off approach, while Keynesian economics focuses on government intervention.
ExplanationDiffering views on government's role in economy.
#6
Which of the following is NOT included in the calculation of GDP?
Investment in stocks
ExplanationFinancial investments are not directly counted.
#7
What is the formula for calculating GDP?
GDP = Consumption + Investment + Government Spending + Net Exports
ExplanationSum of all expenditures in an economy.
#8
In macroeconomics, what does the term 'inflation' refer to?
Increase in the overall level of prices
ExplanationRise in general price levels.
#9
Which of the following is an example of a leading economic indicator?
Stock market performance
ExplanationPredictive of future economic trends.
#10
What is the formula for the unemployment rate?
Unemployment rate = (Number of unemployed / Labor force) x 100
ExplanationPercentage of unemployed in the labor force.
#11
In the Solow growth model, what does the steady-state level of capital represent?
The level of capital where there is no further growth
ExplanationEquilibrium point of capital accumulation.
#12
Which of the following is a component of the expenditure approach to calculating GDP?
Net exports
ExplanationDifference between exports and imports.
#13
What is the difference between nominal GDP and real GDP?
Nominal GDP includes inflation, while real GDP does not.
ExplanationAdjustment for inflation.
#14
What is the Phillips Curve used to illustrate in macroeconomics?
The relationship between inflation and unemployment
ExplanationInverse relationship between inflation and unemployment.
#15
What is the role of the Federal Reserve in the United States?
Monetary policy implementation
ExplanationCentral bank responsible for monetary policy.
#16
Which of the following is an example of an automatic stabilizer in fiscal policy?
Unemployment benefits
ExplanationPrograms that automatically adjust with economic conditions.
#17
What is the concept of the multiplier effect in economics?
The impact of an initial change in spending on overall economic activity
ExplanationAmplification of economic effects.