Macroeconomics Quiz

Of the following groups, who would be the most impacted by inflation?

• members of strong labor unions

• people who do not have any debt

• employees who have received raises

• individuals living on fixed incomes

How is GDP defined?

• a description of the quality of life in a nation

• average value of production of intermediate goods

• a collection of all government assets that could earn money

• market value of all goods and services produced in a country

The Consumer Price Index (CPI) is best used to determine the

• A) Dow Jones Index

• B) rate of inflation

• C) unemployment rate

According to the GDP formula GDP = C + I + G + Xn, what does the Xn represent?

• A) Government spending

• B) Net exports

• C) Consumer Spending

• D) Business Investments

Fill in the blank: The GDP formula is GDP = C + I + G + ___.

• A) Xn

• B) Y

• C) Z

• D) W

Fill in the blank: The CPI is a measure of the change in the cost of a fixed basket of ___.

• goods and services

• investments

• exports

• imports

Fill in the blank: Aggregate demand is the total demand for goods and services within an ___.

• economy

• industry

• company

• market

What is the name of the "central bank" of the United States?

• Bank of the U.S.

• The Federal Reserve

• U.S. Congressional Bank

• The Federal Bank of America

Monetary policy is described as

• A) benefits received by employees in addition to wages and salaries

• B) actions by the Federal Reserve System to expand or contract the money supply

• C) a system that relies on supply and demand to determine the value of

The term 'fiscal policy' refers to

• government spending and taxation

• interest rates and money supply

• trade agreements

• currency exchange rates