Macroeconomics Quiz 2019

Study of macroeconomics deals with ______.

• behavior of firms

• behavior of industry

• microeconomics aggregates

• macroeconomics aggregates

Which is the largest figure of macroeconomics?

• NNP

• PI

• GNP

• DPI

The difference between microeconomics and macroeconomics is:

• Microeconomics looks at supply and demand for goods, macroeconomics looks at supply and demand for services

• Microeconomics looks at prices, macroeconomics looks at inflation

• Microeconomics looks at individual consumers, macroeconomics looks at national totals

• Microeconomics looks at national issues, macroeconomics looks at global issues

National income statistics show that real GDP per head is 25% higher in country X than in country Y. Why might this exaggerate the gap in average living standards?

• Country X has a larger population than country Y

• Country X has a higher rate of inflation than country Y

• The proportion of services people provide for themselves is higher in country Y

• The proportion of the country’s industry which is owned by foreign firms is higher in Country Y

A country has a trade surplus when ______.

• imports exceed exports

• imports equal exports

• exports exceed imports

• export is zero

Which of the following statement is true about Reserve Money (RM)?

• It is High-powered money

• It is monetary base

• It is the liquidity of central bank

• All of the above

Which of the following describes GDP Deflator?

• Ratio of Nominal GDP to Real GDP

• Ratio of Nominal GNP to Real GNP

• Ratio of Nominal NNP to Real NNP

• None of the above

If an increase of Rs 100 million in investment leads to a rise in national income by Rs 500 million, then the value of multiplier is ______.

• 5

• 5 (duplicate option)

• 3

• 2

Keynes assumed that wages and prices were slow to adjust in order to explain ______.

• persistently high unemployment

• high inflation

• the high level of interest rates

• why inflation fell in recessions

What will cause the level of investment to fall according to the MEC theory?

• An increase in business confidence

• An increase in the rate of growth of national income

• An increase in the price of capital equipment

• An increase in the rate of interest