Macro Basics Mastery Quiz

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Test your macro basics knowledge

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Monica Defosse

México

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Froggy Jumps Macro Basics Mastery QuizVersión en línea Test your macro basics knowledge por Monica Defosse 1 What does GDP measure in an economy? a Total income of all residents b Total value of all final goods and services produced c Total government spending in a year 2 Which policy tool is used to influence inflation and employment via interest rates? a Trade policy b Fiscal policy c Monetary policy 3 If price levels rise and real GDP falls, which condition is most likely? a Hyperinflation b Stagflation c Deflationary boom 4 Which relationship describes how inflation and unemployment trade off in the short run? a Phillips curve b Demand curve c Lorenz curve 5 What is the result of an expansionary fiscal policy? a Increased aggregate demand and output b Reduced government spending c Higher unemployment 6 What does the unemployment rate measure? a Share of the labor force without work but seeking employment b Total number of job vacancies c Share of all residents who are employed 7 Which component is NOT part of aggregate demand? a Imports b Consumption c Investment 8 What is a budget deficit? a When tax revenue exceeds spending b When government spending exceeds tax revenue c When exports exceed imports 9 What happens when the central bank lowers interest rates? a Borrowing becomes cheaper, encouraging spending b Money supply falls c Prices immediately rise 10 What does the quantity theory of money imply? a Output is independent of money supply b Increasing money supply raises price levels in the long run c Velocity of money fixes GDP

Froggy Jumps

Macro Basics Mastery QuizVersión en línea

Test your macro basics knowledge

por Monica Defosse

What does GDP measure in an economy?

Total income of all residents

Total value of all final goods and services produced

Total government spending in a year

Which policy tool is used to influence inflation and employment via interest rates?

Trade policy

Fiscal policy

Monetary policy

If price levels rise and real GDP falls, which condition is most likely?

Hyperinflation

Stagflation

Deflationary boom

Which relationship describes how inflation and unemployment trade off in the short run?

Phillips curve

Demand curve

Lorenz curve

What is the result of an expansionary fiscal policy?

Increased aggregate demand and output

Reduced government spending

Higher unemployment

What does the unemployment rate measure?

Share of the labor force without work but seeking employment

Total number of job vacancies

Share of all residents who are employed

Which component is NOT part of aggregate demand?

Imports

Consumption

Investment

What is a budget deficit?

When tax revenue exceeds spending

When government spending exceeds tax revenue

When exports exceed imports

What happens when the central bank lowers interest rates?

Borrowing becomes cheaper, encouraging spending

Money supply falls

Prices immediately rise

What does the quantity theory of money imply?

Output is independent of money supply

Increasing money supply raises price levels in the long run

Velocity of money fixes GDP

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Macro Basics Mastery Quiz

Froggy Jumps

Sobre esta actividad

Creada por

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Froggy Jumps

Macro Basics Mastery QuizVersión en línea

por Monica Defosse

What does GDP measure in an economy?

Which policy tool is used to influence inflation and employment via interest rates?

If price levels rise and real GDP falls, which condition is most likely?

Which relationship describes how inflation and unemployment trade off in the short run?

What is the result of an expansionary fiscal policy?

What does the unemployment rate measure?

Which component is NOT part of aggregate demand?

What is a budget deficit?

What happens when the central bank lowers interest rates?

What does the quantity theory of money imply?

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