IM1_Economic Problems, Components, and Macroeconomic

What is the overall focus of economic studies?

• National income

• Inflation

• Long-term economic growth

• All of the above

What are the types of unemployment?

• Structural, frictional, cyclical

• Only structural

• Only frictional

• Only cyclical

What is meant by GDP?

• Total value of goods/services produced

• Expenditure on goods/services

• Business expenditure on capital

• Public expenditure

What is included in fiscal policy?

• Taxes and government spending

• Interest rate control

• Central bank intervention

• Deregulation

What is the main problem in the economy?

• Unemployment

• Inflation

• Income inequality

• All of the above

What is meant by the business cycle?

• Recession and expansion

• Only recession

• Only expansion

• None

What is the main objective of macroeconomic policy?

• Sustainable economic growth

• Controlled inflation

• Full employment

• All of the above

What is meant by monetary policy?

• Control of interest rates by the central bank

• Taxes and government spending

• Public expenditure

• Deregulation

What are the components of Aggregate Demand?

• Consumption, investment, government spending

• Only consumption

• Only investment

• Only government spending

What is meant by supply-side policy?

• Increased productivity

• Interest rate control

• Tax

• Budget deficit