Can You Really Pass This Macroeconomics Test? Trivia Quiz
23 Questions
| Attempts: 1663
Can You Pass This Macroeconomics Test? The performance of the economy is dependent on various factors. By studying microeconomics, you get to learn more about the changes in the environment and what the changes mean for the economy as a whole and if a country can keep inflation at a low rate and employment high. Take the quiz and also get to refresh your knowledge so far.
Questions and Answers
- 1.The aggregate demand-aggregate supply model is a variable-price-level model that permits analysis of simultaneous changes in real GDP and the price level.
- A.
True
- B.
False
- 2.The aggregate demand curve slopes downward.
- A.
True
- B.
False
- 3.A fall in the price level increases the real value of financial assets with fixed money values and, as a result, increases spending by the holders of these assets.
- A.
True
- B.
False
- 4.A fall in the price level reduces the demand for money in the economy and drives interest rates upward.
- A.
True
- B.
False
- 5.A rise in the price level of an economy (relative to the foreign price levels) tends to increase that economy's exports and to reduce its imports of goods and services.
- A.
True
- B.
False
- 6.The higher the price level, the smaller the wealth of consumers and the lower the consumption schedule.
- A.
True
- B.
False
- 7.A change in AD is caused by a change in the price level, other things equal.
- A.
True
- B.
False
- 8.A fall in excess capacity, or unused existing capital goods, will retard the demand for new capital goods, and therefore reduce AD.
- A.
True
- B.
False
- 9.The real balances effect is one of the determinants of AD.
- A.
True
- B.
False
- 10.A high level of household indebtedness will tend to increase consumer spending and AD.
- A.
True
- B.
False
- 11.Appreciation of the dollar relative to foreign currencies will tend to increase new exports and AD.
- A.
True
- B.
False
- 12.The aggregate supply curve has a down sloping range.
- A.
True
- B.
False
- 13.When the determinants of AS change, they alter the per-unit production cost and thereby AS.
- A.
True
- B.
False
- 14.Productivity is a measure of real output per unit of input.
- A.
True
- B.
False
- 15.A change in the degree of market power or monopoly power held by sellers of resources can affect input prices and AS.
- A.
True
- B.
False
- 16.Per-unit production cost is determined by dividing total input cost by units of output.
- A.
True
- B.
False
- 17.At the equilibrium price level, the real domestic output purchased is equal to the real domestic output produced.
- A.
True
- B.
False
- 18.In the intermediate range on the AS curve, an increase in AD will increase both the price level and the real domestic output.
- A.
True
- B.
False
- 19.In the horizontal range on the AS curve, an increase in AD will have no effect on the real equilibrium GDP of the economy and will raise the price level.
- A.
True
- B.
False
- 20.The greater the increase in the price level that results from an increase in AD, the greater will be the increase in the equilibrium real GDP.
- A.
True
- B.
False
- 21.Inflation has no effect on the strength on the multiplier.
- A.
True
- B.
False
- 22.Fears of price wars tend to make the price level more flexible rather than less flexible.
- A.
True
- B.
False
- 23.An increase in AS increases both the equilibrium real domestic output and the full-employment output of the economy.
- A.
True
- B.
False