Quiz 1: Introduction to Macroeconomics

Aggregate supply is the total amount:

• Of labour supplied by all households

• Of products produced by a given industry

• Produced by the government

• Of goods and services produced in an economy

Macroeconomics theory studies the following EXCEPT…

• How to determine international trade activities

• How to determine the unemployment and inflation rate

• How to determine the equilibrium income in an economy

• How to determine type and quality of goods to produce

Macroeconomics studies the economy from viewpoint of …

• The firms

• The households

• The government

• The entire economy

Which of the following is NOT a macroeconomics objective?

• To achieve equal distribution of income

• To maintain domestic price instability

• To achieve full employment of resources

• To achieve sustainable economic growth

Which of the following is a macroeconomic statement?

• The price of rice decline by 1%

• ALTEL company profit increase by 10%

• The demand of PEPSI dropped

• The income of Malaysian increase

Which of the following is not the area of macroeconomics:

• Unemployment rate

• Market structure

• Inflation rate

• Foreign exchange rate

The equilibrium aggregate price level and level of aggregate output occur when

• The aggregate demand and aggregate supply curve intersect

• Real domestic output is at its maximum level

• There is full employment

• The exports are equal to import

A country is said to be experiencing inflation when…

• Prices of most goods and services are rising over time

• Total output is falling over time

• Total output is rising over time

• Prices of most goods and services are falling over time

The goals of macroeconomics include

• Economic stagnation

• Higher price level

• Imbalance in balance of payment

• Full employment

Which of the following is a macroeconomics objective?

• Unemployment

• Extremely high economic growth

• Employed all available resources

• Inflation