Macroeconomics Quiz

What are the four main components of GDP?

• Consumption, Investment, Government spending, Net exports

• Consumption, Savings, Investment, Imports

• Government spending, Exports, Imports, Taxes

• Consumption, Investment, Taxes, Exports

Which type of unemployment occurs when there is a mismatch between the skills of the unemployed and the skills needed for available jobs?

• Cyclical unemployment

• Frictional unemployment

• Structural unemployment

• Seasonal unemployment

What is the primary cause of demand-pull inflation?

• Decrease in production costs

• Increase in aggregate demand

• Decrease in taxes

• Increase in unemployment

Which phase of the business cycle is characterized by rising GDP and employment?

• Expansion

• Peak

• Contraction

• Trough

What is the main objective of fiscal policy in macroeconomics?

• To control the money supply

• To regulate the stock market

• To stabilize the economy

• To ensure price stability

Which component of GDP would increase if the government decides to build more highways?

• Consumption

• Investment

• Government spending

• Net exports

What type of unemployment is typically short-term and occurs due to people switching jobs or entering the workforce?

• Cyclical unemployment

• Frictional unemployment

• Structural unemployment

• Seasonal unemployment

Cost-push inflation is primarily caused by:

• A surge in consumer demand

• A drop in unemployment rates

• An increase in the costs of production

• A reduction in taxation

During which phase of the business cycle does unemployment typically begin to rise?

• Expansion

• Peak

• Contraction

• Trough

Which of the following is a tool of fiscal policy?

• Interest rates

• Government spending and taxation

• Currency valuation

• Stock market regulations