CHAPTER 1 - INTRODUCTION TO MACROECONOMICS

Macroeconomics is the study of economics from the view point of

• the entire economy

• individual and firms spending

• the individual household

• local government expenditure

Identify the study concerned in macroeconomics

• method of production and cost

• the impact of wage reduction on agro-production

• the reaction of Malaysian to the changes of petrol price

• the general price levels

The following is the goal of macroeconomics EXCEPT:

• Achieve full employment

• Economic growth

• Control the Union Labor

• Equitable distribution of income

Which of the following issues would a macroeconomist concentrate on

• the price of durians Musang King

• the achievement of full employment

• the profits of Proton national cars

• the market for housing in country

The aggregate of demand and the aggregate of supply study of relationship between

• the price level and unemployment

• the price level and real GDP

• unemployment and real GDP

• nominal GDP and inflation

Which of the macroeconomics issues will affect the economic stability?

• Increase in oil subsidies

• Increase in foreign labors inflows

• Increase in prices in the property sector

• Increase in deficit balance of payments

Aggregate supply curve shifts to the left due to increase in

• input tax

• money supply

• labor productivity

• the general price level

Aggregate demand curve shifts to the right because of

• The interest rate increases

• the income level decreases

• the net taxes decrease

• the investment level decreases

The macroeconomics variables are as follows, EXCEPT:

• Wage rate

• Inflation rate

• Unemployment rate

• Economic growth rate

Economic growth would most likely be stimulated by

• higher unemployment rates

• higher rate of technological progress

• increase in membership of labor unions

• consumption of more consumer goods