Macroeconomics Quiz

What is the main focus of macroeconomics?

• Study of individual markets

• Study of national economies

• Study of local businesses

• Study of personal finance

What does a recession indicate?

• Rising prices

• Economic growth

• High unemployment

• Increased exports

What is inflation?

• Stable prices

• Unemployment rate

• Decrease in prices

• Increase in prices

What is a trade surplus?

• Exports exceed imports

• High unemployment

• Equal imports and exports

• Imports exceed exports

What does fiscal policy involve?

• Government spending and taxation

• Stock market

• Trade agreements

• Interest rates

What is the unemployment rate?

• Percentage of people with jobs

• Percentage of people without jobs

• Total population

• Economic growth rate

What can cause economic activity to fluctuate?

• High savings rates

• Fixed government policies

• Stable interest rates

• Changes in consumer confidence

What is the role of the central bank in monetary policy?

• Control of government spending

• Control of interest rates and money supply

• Regulation of trade

• Management of unemployment

What is a closed economy?

• An economy with high inflation

• An economy with low unemployment

• An economy with high exports

• An economy with no trade relationships

What does the classical approach to economics emphasize?

• Government intervention

• Free markets and individual interests

• Trade restrictions

• High taxes