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C1 : SET 4 - INTRODUCTION TO MACROECONOMICS

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

With what kinds of topics does macroeconomics concern itself?

a)

Economic activities of individual firms, households, and other organizations.

b)

Forces of supply and demand in a particular market.

c)

Consumer behavior and firms output decisions.

d)

Aggregate economic phenomena like the rate of unemployment and inflation

2.

Which one of the following is the best explanation of macroeconomics?

a)

The study of economics

b)

The study of decisions that businesses and individuals make in the marketplace

c)

The study of the global economy

d)

The study of economic phenomena that affects an entire economy

3.

Macroeconomics is associated with the fluctuation of the general price level in the country.

a)

TRUE

b)

FALSE

4.

Macroeconomics explains the behavior of individual household and business firms.

a)

TRUE

b)

FALSE

5.

Price level stability is one of the macroeconomic goals.

a)

TRUE

b)

FALSE

6.

The purpose of monetary policy is to maintain the overall price level and to achieve higher economic growth.

a)

TRUE

b)

FALSE

7.

The government implements contractionary monetary policy when recession occurs.

a)

TRUE

b)

FALSE

8.

Monetary policy is changes in the money supply or credit conditions designed to achieve macroeconomic goals.

a)

TRUE

b)

FALSE

9.

The tools of fiscal policy are government expenditure is and taxation.

a)

TRUE

b)

FALSE

10.

Aggregate demand is the total aggregate output and price level of economy in a given period.

a)

TRUE

b)

FALSE