Macroeconomics Quiz

What is the primary focus of macroeconomics?

• Supply chain management

• Aggregate variables like income and price

• Market competition

• Individual consumer behavior

Which of the following is NOT a goal of macroeconomics?

• Sustainable economic growth

• Achieving full employment

• Maintaining price stability

• Maximizing individual wealth

What does inflation refer to?

• A balance in trade

• Stability in price levels

• A rise in the general price level

• A decrease in the general price level

What is aggregate demand?

• The total income of a nation

• The total amount of goods and services demanded

• The total exports of a country

• The total amount of goods and services supplied

Which factor does NOT affect the aggregate supply curve?

• Costs of production

• Consumer preferences

• Technology

• Economic growth

What is the balance of payments?

• A record of a country's trade transactions

• A report on inflation rates

• A measure of national income

• A summary of government spending

Which of the following is a determinant of aggregate demand?

• Interest rates

• Labor market conditions

• Consumer savings

• Government purchases

What is the primary effect of achieving full employment?

• Optimal use of available resources

• Higher taxes

• Underutilization of resources

• Increased inflation

What is a potential consequence of a deficit in the balance of payments?

• Economic stability

• Increased foreign investment

• Higher employment rates

• Adverse effects on the economy

What does price stability mean?

• Constant inflation rates

• Rapid deflation

• No changes in price levels

• Minimal changes in general price levels