WorksheetsUnderstanding Macroeconomics
Total questions: 15
Worksheet time: 8mins
What does GDP stand for in economics?
Gross Domestic Product
General Development Plan
Government Debt Payment
Global Distribution Policy
Which of the following best describes inflation?
A decrease in the general price level of goods and services
An increase in the general price level of goods and services
A rise in unemployment rates
A fall in the value of exports
If the unemployment rate in Australia rises, what does this mean?
More people are working
Fewer people are looking for jobs
More people are without jobs and actively seeking work
The government has increased taxes
Which of the following is an example of fiscal policy?
The Reserve Bank of Australia changing interest rates
The government increasing spending on schools and hospitals
The Australian dollar rising in value
Banks lending more money to customers
Who is responsible for monetary policy in Australia?
The Prime Minister
The Reserve Bank of Australia
The Australian Bureau of Statistics
The Department of Education
What is the main goal of monetary policy?
To control government spending
To manage the supply of money and interest rates
To increase exports
To reduce the number of banks
Which of the following is a benefit of international trade for Australia?
Higher unemployment
Access to a wider variety of goods and services
Lower GDP
Increased inflation
If the Australian dollar (<katex latex="\mathrm{AUD}"></katex>) becomes stronger compared to the US dollar (<katex latex="\mathrm{USD}"></katex>), what is likely to happen?
Australian exports become cheaper for other countries
Australian imports become more expensive
Australians can buy more goods from overseas for the same amount of money
The unemployment rate will automatically fall
Which of the following is NOT included in the calculation of GDP?
The value of new cars produced in Australia
The value of used cars sold between Australians
The value of services provided by Australian doctors
The value of new houses built in Australia
What is the usual effect of high inflation on the cost of living?
The cost of living decreases
The cost of living stays the same
The cost of living increases
The cost of living is not affected
Which of the following is a tool of monetary policy?
Changing tax rates
Changing government spending
Changing the official cash rate
Building new roads
If Australia imports more than it exports, what is this called?
Trade surplus
Trade deficit
Balanced trade
Fiscal policy
Which of the following would most likely reduce unemployment?
A decrease in government spending
An increase in interest rates
An increase in demand for Australian goods and services
A fall in the value of the Australian dollar
What does an exchange rate show?
The number of jobs in a country
The price of one country’s currency in terms of another country’s currency
The amount of goods produced in a year
The level of government spending
If the government wants to encourage more spending in the economy, which action would be most effective?
Increase taxes
Decrease government spending
Decrease taxes
Increase interest rates
