Macroeconomics

38 Questions | Total Attempts: 209

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Macroeconomics Quizzes & Trivia

Chapters 9-13 in Macroeconomics


Questions and Answers
  • 1. 
    As labor grows you'll be able to produce more, but at a lower rate
    • A. 

      Inflation adjustment line

    • B. 

      Productivity

    • C. 

      Demand shock

    • D. 

      Velocity

    • E. 

      Diminishing returns

  • 2. 
    The discovery of new knowledge or a new principle
    • A. 

      Innovation

    • B. 

      Invention

    • C. 

      Diffusion

    • D. 

      Disinflation

    • E. 

      Re inflation

  • 3. 
    As the part of a person's wealth that can be readily used for transactions of buying items
    • A. 

      Currency

    • B. 

      Money supply

    • C. 

      Medium of exchange

    • D. 

      Checking deposits

    • E. 

      Money

  • 4. 
    Growth rate of productivity = 1/3 (growth rate of capital per hr of work) + (growth rate of technology)ORGrowth rate of technology = growth rate of productivity - 1/3 (growth rate of capital per hour of work)
    • A. 

      Target inflation rate

    • B. 

      Aggregated demand

    • C. 

      Growth accounting formula

    • D. 

      Federal funds rate

    • E. 

      Reserves

  • 5. 
    The central banks goal for the average rate of inflation over the long run 
    • A. 

      Federal reserves system

    • B. 

      Quantity equation of money

    • C. 

      Real business cycle theory

    • D. 

      Target inflation rate

    • E. 

      Marginal propensity to consume

  • 6. 
    Something of value owned by a person or firm
    • A. 

      Asset

    • B. 

      Productivity

    • C. 

      Liability

    • D. 

      Unit of account

    • E. 

      Open market operation

  • 7. 
    The level of income or real GDP at which the 45 degree line and the expenditure line cross; also called the equilibrium income
    • A. 

      Marginal propensity to consume

    • B. 

      Expenditure line

    • C. 

      Spending balance

  • 8. 
    The buying or selling of bonds by the central bank
    • A. 

      Abc

    • B. 

      Federal open market committee

    • C. 

      Federal reserves system

    • D. 

      Federal funds rate

    • E. 

      Open market operation

  • 9. 
    Something of value that a person/firm owes to someone else.
    • A. 

      Assets

    • B. 

      Liability

    • C. 

      Reserves

  • 10. 
    Coins & paper money
    • A. 

      Money

    • B. 

      Store of value

    • C. 

      Assets

    • D. 

      Bank

    • E. 

      Currency

  • 11. 
    The equation relating the price level and GDP to the quantity of money and the velocity of money.(Quantity of money) (velocity) = (price level) (real GDP)
    • A. 

      Spending balance

    • B. 

      Quantity equation of money

    • C. 

      Monetary policy rule

    • D. 

      Medium of exchange

  • 12. 
    The interest rate on overnight loans between banks.
    • A. 

      Federal funds rate

    • B. 

      Required reserve ratio

    • C. 

      Reserves

    • D. 

      Open market operation

    • E. 

      Consumption function

  • 13. 
    "practice makes perfect"
    • A. 

      Money supply

    • B. 

      Open market operation

    • C. 

      Expenditure line

    • D. 

      Learning by doing

  • 14. 
    A line showing a negative relationship between inflation and the aggregated quantity of goods/services
    • A. 

      Expenditure line

    • B. 

      Aggregated demand (AD) curve

    • C. 

      Inflation adjustment (IA) line

    • D. 

      Medium of exchange

  • 15. 
    The fraction of a banks deposits that is required to hold at the federal reserves 
    • A. 

      Store of value

    • B. 

      Checking deposits

    • C. 

      Required reserve ratio

    • D. 

      Quantity theory of money

    • E. 

      Inflation

  • 16. 
    New knowledge is brought into application with a new product
    • A. 

      Invention

    • B. 

      Innovation

    • C. 

      Diffusion

  • 17. 
    Something that will allow purchasing power to be carried from one person to the next
    • A. 

      Productivity

    • B. 

      Unit of account

    • C. 

      Bank

    • D. 

      Store of value

  • 18. 
    Innovation that creates something brand new
    • A. 

      Invention

    • B. 

      Innovation

    • C. 

      Diffusion

    • D. 

      Disinflation

    • E. 

      Demand shock

  • 19. 
    Output per unit of labor (Y/L)
    • A. 

      Diminishing returns

    • B. 

      Technological change

    • C. 

      Growth accounting formula

    • D. 

      Productivity

  • 20. 
    A flat line showing the level of inflation in the economy at a given point in time. It shifts up when real GDP is greater than potential 
    • A. 

      Real business cycle theory

    • B. 

      Federal funds rate

    • C. 

      Aggregated demand (AD) curve

    • D. 

      Expenditure line

    • E. 

      Inflation adjustment (IA) line

  • 21. 
    A component of the Keynesian Theory, ____ represents the proportion of an aggregate raise in pay that's spent on the consumption of goods/services 
    • A. 

      Marginal propensity to consume (MPC)

    • B. 

      Aggregated demand curve (AD)

    • C. 

      Inflation adjustment line (IA)

    • D. 

      Quantity equation of money

  • 22. 
    A slowing in the rate of price inflation. ____ is used to describe instances when the inflation rate has reduced marginally over the short term.
    • A. 

      Price shock

    • B. 

      Demand shock

    • C. 

      Disinflation

    • D. 

      Reinflation

    • E. 

      Inflation

  • 23. 
    A condition of slow economic growth and relatively high unemployment. Occurs when the economy isn't growing, but prices are
    • A. 

      Disinflation

    • B. 

      Reinflation

    • C. 

      Inflation

    • D. 

      Invention

    • E. 

      Stagflation

  • 24. 
    A general decline in prices, often caused by a reduction in the supply of money or credit. Deflation in government, personal or investment spending. Can increase unemployment => can then lead to economic depression.
    • A. 

      Opperation

    • B. 

      Disinflation

    • C. 

      Stagflation

    • D. 

      Deflation

    • E. 

      Innovation

  • 25. 
    An item that people are willing to accept as payment for what they are selling because they in turn can use it to pay for something else that they want
    • A. 

      Currency

    • B. 

      Medium of exchange

    • C. 

      Money

    • D. 

      Money supply

  • 26. 
    A theory of macro that stresses the shift in potential GDP are a primary cause of fluctuations in real GDP, the shifts in potential GDP are usually assumed to be caused by changes in technology 
    • A. 

      Real business cycle theory

    • B. 

      Technological change

    • C. 

      Growth accounting formula

    • D. 

      Money supply

  • 27. 
    A relation between the sum of 4 components of spending and aggregated income (C + I + X + G)
    • A. 

      Consumption function

    • B. 

      Inflation adjustment (IA) line

    • C. 

      Expenditure line

    • D. 

      Liabilities

    • E. 

      Assets

  • 28. 
    A surprise event that temporarily increases or decreases demand for goods/services
    • A. 

      Stagflation

    • B. 

      Disinflation

    • C. 

      Reinflation

    • D. 

      Price shock

    • E. 

      Demand shock

  • 29. 
    A firm that channels funds from savers to investors by accepting deposits and making loans
    • A. 

      Money supply

    • B. 

      Money

    • C. 

      Medium of exchange

    • D. 

      Bank

    • E. 

      Loans

  • 30. 
    A standard unit which units can be quoted and values of goods can be compared
    • A. 

      Unite of account

    • B. 

      Medium of exchange

    • C. 

      Checking deposits

    • D. 

      Liability

  • 31. 
    Occurs when new ideas are developed into new products that increase production (also known as technological progress)
    • A. 

      Innovation

    • B. 

      Invention

    • C. 

      Diffusion

    • D. 

      Learning by doing

    • E. 

      Growth accounting formula

  • 32. 
    The central bank of the US, which oversees the creations of money in the US
    • A. 

      Growth accounting formula

    • B. 

      Required reserve ration

    • C. 

      Federal Open Market Committee

    • D. 

      Federal Reserves System (The Fed)

    • E. 

      Spending balance

  • 33. 
    The positive relationship between consumption and income
    • A. 

      Aggregated demand (AD) curve

    • B. 

      Consumption function

    • C. 

      Keynesian Theory

    • D. 

      Monetary Policy Ruke

  • 34. 
    A description of how much the interest rate or other instruments of monetary policy respond to inflation or other measures of the state of the economy
    • A. 

      Federal Reserves

    • B. 

      Federal Funds Rate

    • C. 

      Required reserves

  • 35. 
    The measure of how frequently money is turned over in the economy
    • A. 

      Money supply

    • B. 

      Velocity

    • C. 

      Reserves

    • D. 

      Bank

    • E. 

      Frequency

  • 36. 
    A line showing that expenditures equal aggregated income
    • A. 

      Target inflation rate

    • B. 

      45 degree line

    • C. 

      Aggregated demand (AD) curve

    • D. 

      Inflation adjustment (IA) line

    • E. 

      Technological change

  • 37. 
    Deposits that commercial banks hold at the federal reserve
    • A. 

      Assets

    • B. 

      Liability

    • C. 

      Reserves

    • D. 

      Growth accounting formula

  • 38. 
    The sum of currency + deposits at a bank
    • A. 

      Assets

    • B. 

      Llollipops

    • C. 

      Currency

    • D. 

      Money supply

    • E. 

      Deposits