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Macroeconomic objectives

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Calculate GDP

a)

2385

b)

1570

c)

1500

d)

1550

2.

Using T1 as the base year, Calculate CPI for T2.


Assume consumers spend 25% of their income on bananas and the rest on backrubs.

a)

12.625

b)

213

c)

112.6

d)

13.5

3.

Which of the following is not a limitation of monetary policy

a)

Banks may not have liquidity to pass on

b)

Interest rates won't affect fixed rate loans

c)

Consumers may respond to lower interest rates by saving more

d)

The central bank is independent

4.

Keynesians differ from classical theorists because they

a)

believe wages are sticky

b)

don't think consumers are rational

c)

are short-sighted

d)

believe in communist revolution

5.

Economic growth

a)

Always leads to improved standards of living

b)

Means more resources are being used

c)

Is the most important thing to an economy

d)

Can be eroded by inflation

6.

The Phillips curve shows that

a)

workers always ask fro higher wages

b)

there is a trade off between inflation and employment

c)

rising inflation will always reduce unemployment

d)

lower rates of inflation sometimes correlate with higher rates of unemployment

7.

Which of the following is not a cause of inequality

a)

Market based Supply Side Policies

b)

Differences in education

c)

Discrimination

d)

Capitalism

8.

Calculate the average tax rate for someone earning £60,000 in 2020

a)

40%

b)

32.1%

c)

19.2%

d)

24.9%

9.

If MPS = 0.1, MPT = 0.2 and MPM = 0.3, calculate the Multiplier

a)

1.5

b)

1.66

c)

2.66

d)

2.5

10.

Which of the following is not a supply side policy?

a)

Privatisation

b)

Anti-monopoly regulation

c)

Cuts to Income Tax

d)

Cuts to interest rates