Macro

Macroeconomics involves the study of:

• Individual markets

• Individuals' decisions to work

• The whole economy

• The determinants of the price of a particular product

Which of the following is not likely to be studied in macroeconomics?

• Unemployment

• A favourable balance of trade

• The price of cars

• The growth of an economy

Which of the following is the best example of fiscal policy?

• Interest rates

• Control of the money supply

• Changes to the law

• Changes in taxation rates

Which of the following is the best example of monetary policy?

• Changes to interest rates

• A change in income tax

• A change in government spending

• A change in the law

To increase demand in the economy a government might:

• Increase income tax

• Reduce government spending

• Increase tax on company profits

• Make it cheaper to borrow

An example of government policy conflict might be:

• More spending to increase growth and reduce unemployment

• Lower interest rates leading to more employment and more growth

• Lower taxation leading to more growth and lower unemployment

• An increase in demand leading to less unemployment and higher prices

A policy instrument such as fiscal policy:

• Is the result of achieving an objective

• Is a target

• Is a by-product of achieving a target

• Is used to achieve an objective

A key issue facing the UK government at the moment is to raise the skills level of
younger people

• True

• False

Tags

CCSS.RI. 9-10.2

CCSS.RI.11-12.2

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.9-10.2

If the government uses taxation and government spending to shift aggregate demand
or supply it is called what?

• Monetary policy

• Ecumenical policy

• Fiscal policy

• Normative policy

If the government uses interest rates to shift aggregate demand or supply it is called
what?

• Monetary policy

• Ecumenical policy

• Fiscal policy

• Normative policy