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Macroeconomics Practice Quiz

9 Questions
Macroeconomics Practice Quiz

This practice quiz is designed to measure your undersatanding of Macroeconomics.

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Questions and Answers
  • 1. 
    Diffrence between Real and Nominal GDP is 
    • A. 

      Measured by excluding some of the sectors

    • B. 

      That real GDP is always smaller than Nominal GDP

    • C. 

      Change in price level from base year to current year

    • D. 

      None of the above.

  • 2. 
    • A. 

      Produced domestically

    • B. 

      Produced by domestic factors of production

    • C. 

      Produced by all factors of production

    • D. 

      All of the above

  • 3. 
    • A. 

      GDP

    • B. 

      Per Capita GDP

    • C. 

      Currency in circulation

    • D. 

      None of the above

  • 4. 
    Verticle intercept of consumption function indicates
    • A. 

      Average propensity to consume

    • B. 

      Consumption at zero level of income

    • C. 

      Both of the above

    • D. 

      None of the above

  • 5. 
    • A. 

      B is intercept

    • B. 

      Slope of the function

    • C. 

      MPC

    • D. 

      a & C

  • 6. 
    In Keynesian Framework Income is measured along
    • A. 

      45 degree line

    • B. 

      Verticle axis

    • C. 

      Horizontal axis

    • D. 

      All are correct

  • 7. 
    If investment is exogenous to the Income determination model it can be shown as
    • A. 

      Verticle line

    • B. 

      Horizontal line

    • C. 

      All of the above

    • D. 

      None of the above

  • 8. 
    In closed economy GDP equals
    • A. 

      C+I+X-N

    • B. 

      C+I

    • C. 

      C+I+G

    • D. 

      All of the above

  • 9. 
    In the model Y=C+I+G and C=a+by Where b=0.8 , the expenditure multplier is
    • A. 

      1

    • B. 

      4

    • C. 

      5

    • D. 

      None of the above