Macroeconomics Test Illuminate

Which of the following are an example a country reaching its macroeconomic goals?

• The value of the Japanese Yen has declined, causing prices to rise in Japan.

• Canada’s unemployment rate reached 15% last year.

• Inflation in Russia has changed dramatically since last year.

• Germany’s GDP has increased annually by at least 3% for the past 3 years.

How would a significant increase in consumption and economic activity among a nation's consumers affect the nation's economy?

• It would decrease income inequality.

• It would cause inflation rates to rise.

• Businesses would be able to hire more workers.

• The value of the nation's currency would fall.

Use the news headline to answer the question.

Navy orders two Ford class aircraft carriers for $26 Billion.

How will this development affect the gross domestic product?

• It will rise due to increased consumer spending.

• It will fall due to increased consumer spending.

• It will rise due to increased government spending.

• It will fall due to increased government spending.

Changes in gross domestic product MOST directly measure

• A. price inflation.

• B. economic growth.

• C. employment rates.

• D. aggregate demand.

A government institutes new measures in an attempt to limit inflation. To what macroeconomic goal is this action most directly related?

• A. equity

• B. efficiency

• C. stable prices

• D. full employment

Which of the following are included in the unemployment rate?

• A. adults who have retired

• B. part-time workers seeking full-time jobs

• C. laid-off workers seeking new employment

• D. workers who have given up seeking a new job

What does the Consumer Price Index measure?

• A. the change in the value of a basket of national

  currencies

• B. the rate of change in the monetary supply of the United States

• C. the rate of change in the purchasing power of a nation's consumers

• D. the change in the price of a basket of household goods and services

In which situation would the borrower likely benefit the most?

• Kiara takes out a five-year car loan with a fixed interest rate just before a long period of rapid inflation.

• Paige takes out a five-year car loan with a variable interest rate just before a long period of rapid inflation.

• Sondra takes out a five-year car loan with a fixed interest rate just before a long period of rapid deflation.

• Gina takes out a five-year car loan with a fixed interest rate just before a long period of rapid deflation.

Who will benefit if the inflation rate over a thirty- year period is higher than expected?

• lenders who provided thirty-year mortgage loans

• borrowers who took out thirty-year mortgage loans

• people who purchased their homes without a mortgage loan

• people who sold their homes to a buyer with a mortgage loan

Bryce was recently laid off from his job on the auto assembly line. The company is making cutbacks due to fears of an oncoming recession. Bryce is experiencing which type of unemployment?

• Cyclical

• Seasonal

• Structural

• Frictional