Macroeconomics Quiz

What is Macroeconomics? What do economic indicators such as GDP and CPI have to do with Macroeconomics?

• Study of individual markets and consumer behavior

• Study of the economy as a whole, including GDP and CPI

• Study of historical economic events

• Study of business management and strategy

Which of the following is an element of GDP?

• Consumer Spending

• Taxation

• Savings

• Imports

What is not included in GDP?

• Government Spending

• Investment

• Intermediate Products

• Net Trade

What are final goods and services?

• Goods used in the production of other goods

• Goods and services sold to the end user

• Raw materials

• Goods that are exported

What is inflation?

• Decrease in the general price level of goods and services

• Increase in the general price level of goods and services

• Stability in the general price level of goods and services

• Fluctuation in the general price level of goods and services

How does inflation impact consumers’ purchasing power?

• Increases purchasing power

• Decreases purchasing power

• Has no effect on purchasing power

• Doubles purchasing power

What is cost-push inflation?

• Inflation caused by increased demand

• Inflation caused by increased production costs

• Inflation caused by decreased supply

• Inflation caused by government policies

What is deflation?

• A decrease in the general price level of goods and services

• An increase in the general price level of goods and services

• A stabilization of prices

• A rapid increase in inflation

What causes deflation?

• Increased consumer spending

• Decreased consumer demand

• Increased government spending

• Increased production costs

How can deflation lead to a recession?

• By increasing consumer spending

• By decreasing consumer spending

• By stabilizing prices

• By increasing employment