Econ Test 2

2. In the year 2045, Yuni is studying the effect of futuristic government policies on the economy. She learns about the concept of ‘crowding out’, which refers to:

• The impact of increased government borrowing leading to reduced investment in the private sector
• Hyperinflation
• Balance of payments
• Structural unemployment

4. In the year 2045, as Rani’s government faces rising prices in the economy, which policy would she most likely implement to combat inflation?

• Increasing interest rates
• Crowding out
• Producer surplus
• Comparative advantage

5. In the year 2024, during a global economic downturn, a group of economist advised the government to increase spending on infrastructure and decrease taxes to stimulate growth. This approach is known as:

• Keynesian economics
• Marginal utility
• Exchange rate regime
• Interest parity

6. In a futuristic economy where digital currencies dominate, Rudi explained the quantity theory of money using the equation:

• MV = PQ
• Liquidity trap
• GDP deflator
• Elasticity of demand

8. In a future where technology has advanced significantly, how advanced significantly, how does a decrease in consumer spending affect the economy?

• t decreases economic activity and aggregate demand
• Classical dichotomy
• Capital deepening
• Demand-pull inflation

9. In the year 2040, Rahman is analyzing the impact of a significant depreciation of his country’s currency on international trade. How does this depreciation affect the country’s exports and imports?

• exports increase and imports decrease
• Monetary policy
• Supply-side policy
• Aggregate supply shock

10. In a futuristic society where technological advancements are rapidly evolving, Sari, Dian, and Ina discuss the question: What is the impact of these advancements on economic growth?

• Technological advancements are a key driver of economic growth
• Automatic stabilizers
• Market failure
• Fiscal drag

11. In the year 2040, how does a trade surplus impact the value of Indonesia’s currency in the global market?

• The currency value appreciates due to increased demand for the currency
• Price ceiling
• Budget deficit
• Open market operations

12. In the year 2035, Rizky is observing the market for a new smartphone equipped with advanced AI features. This image best represents:

• An increase in quantity demanded
• Ricardian equivalence
• Monetary neutrality
• Stagflation

14. In a futuristic marketplace where advanced technology allows for instant price adjustments based on demand, how does the law of demand describe the relationship between “price” and “quantity demanded” for a popular holographic gadget that Lina wants to buy?

• Inverse
• Aggregate supply shock
• Crowding out
• Budget deficit