Macroeconomics

Which of the following is not one of the components of GDP?

• consumption

• income

• government purchases

• exports

• imports

What do we call a measurement, like GDP, that has been adjusted for inflation?

• real

• nominal

• current

• depreciated

• equilibrium

Which component of GDP is the largest?

• consumption

• income

• government purchases

• exports

• imports

Which country has the highest GDP?

• Russia

• China

• United States

• Japan

• Germany

Which type of unemployment is caused by a decline in the business cycle?

• frictional

• seasonal

• cyclical

• structural

• full

What do we call the most famous measure of how consumers feel about the economy?

• Consumer Sentiment Index

• Consumer Price Index

• Consumer Confidence Index

• Consumers Purchasing Power Index

• Consumer Parity Index

Which type of unemployment is a mismatch of skills and jobs?

• frictional

• seasonal

• cyclical

• structural

• full

What school of economic thought replaced Adam Smith’s theory as the predominant body of economic thought in the Western world during the 1930s through the 1960s?

• Keynesian economics

• Classical Economics

• Supply Side Economics

• Monetarism

• Reaganomics

The deliberate use of government spending and taxation to influence economic activity is called:

• monetary policy

• classical economics

• fiscal policy

• Smithism

• RET

What event caused many scholars to change their ideas about Smith’s theory?

• The American Revolution

• The Russian Revolution

• The Great Depression

• The Vietnam War

• September 11, 2001