Macroeconomics Reviewer

Which of the following statements differentiates macroeconomics from microeconomics?

• Macroeconomics studies how international organizations allocate resources while microeconomics studies how developing nations answer the 3 basic economic questions.

• Macroeconomics studies how nations make economic decisions while microeconomics studies how individuals and businesses allocate their resources.

• Macroeconomics studies how nations form organizations while microeconomics studies how businesses form conglomerates and take over a nation's economy.

This refers to the nation's income without the effect of inflation.

• Nominal GDP

• Normal GDP

• Reversed GDP

• Real GDP

Which of the following statements is TRUE about Fiscal policies?

• These are implemented by the Central Bank.

• These are implemented by the government.

• These include policies related to reserve requirements and discount-rate changes.

• These include policies related to improvements in social services.

Which of the following strategies can be implemented by the government to help the economy reach its target growth rate? Choose 2 answers.

• expansionary fiscal policies

• contractionary monetary policies

• decrease in interest rates of loans

• creation of more infrastructures like public schools and hospitals

Which of the following policies/strategies are expansionary policies? Choose 2 answers.

• government buys back the treasury bonds

• government sells treasury bonds to the public

• lower interest on loans

• higher reserve requirements

How do nations protect and support their local businesses? Choose 2 answers.

• quotas are set to limit the amount of imports that enter the country

• governments support free trade

• imports are endorsed by politicians and other famous personalities

• tariffs are set to make pricing more competitive in the local market

TRUE OR FALSE: Prohibitive tariffs are set too low to encourage more imports to enter the country.

• TRUE

• FALSE

TRUE OR FALSE: The Philippines target inflation rate is 2-4%.

• TRUE

• FALSE

TRUE OR FALSE: In 2023, the industry that contributed the most to the Philippines' GDP is the agricultural sector.

• TRUE

• FALSE

Which of the following factors affect consumption spending? Check all that applies.

• income

• wealth

• taxes

• demographics

• capacity utilization