7/2

24/2

3/3 (45 câu) KL

2. CPI
a. consumer price index
b. customer process indecision
c. customer price index
d. consumer price indent

3. CPI = what?
a. $ of market basket / price of market basket in all years x 10
b. $ of market basket / $ of market basket in base year x 100
c. $ of market basket x $ of market basket in base year x 100
d. $ of market basket / price of market basket in all years x 100

4. In the CPI, goods and services are weighted according to

a. how long a market has existed for each good or service
b. how much consumers buy of each good or service
c. number of firms that produce and sell each good or service

5. What is GDP also called?

a. Gross Domestic Product
b. Dollar Measure
c. Economic Output
d. Leisure Development

6. GDP is…
a. value of goods and services produced of a country in a period of time
b. taxes paid by citizens over a specific period of time
c. how much a single business produces in a period of time
d. a country’s unemployment rate over a period of time

7. What is real GDP per capita?

a. Gross Domestic Product
b. Real GDP divided by the total population
c. Total value of all and services produced in a particular economy
d. “for each person”

8. Period when economy is growing and GDP is rising

a. Monopoly
b. Expansion
c. Oligipoly
d. Productivity

9. ___ is a general decline in prices throughout an economy

a. inflation
b. stagnation
 c. profitability
d. deflation

10. Real GDP is the market value of ___ and ___ produced in an economy, stated in prices of a year
a. inflation, deflation
b. output, input
c. goods, services
d. CPI, PPI

11. Intermediate goods is

a. goods and services used as inputs for the real economy
b. goods and services as outputs to produce sth
c. services used as inputs to produce a product for the economy
d. goods and services for you and to me

12. Alternating periods of expansion and contraction in the economy

a. specialization
b. business cycle
c. expansion
d. recession

13. What does macroeconomics focus on?

a. the overall performance of the national economy
b. a state economy
c. a continent economy
d. individual behavior and the operation of particular market

14. Macroeconomics studies blank

a. interest rates
b. unemployment
c. economic output
d. all of the above

15. Which of the following would macroeconomics study?

a. a general rise in prices
b. a decline in coffee process
c. the success rate of sandwich shops
d. the work habits of students

16. Which of the following is NOT a sector of macroeconomics?

a. CVS retail
b. government
c. household
d. businessm

17. Which one is not one of the 3 concerns of macroeconomics?

a. total output growth (GDP)
b. welfare
 c. unemployment
d. inflation

18. Which of the following is most likely a topic of discussion in macroeconomics?

a. an increase in the price of a pizza
b. a decrease production of DVD players by a company
c. a decrease in the unemployment rate
d. an increase in the wage rate paid to Ford workers

19. What are durable goods?

a. goods that can be bought
b. goods that wear out quickly
c. goods that don’t wear out that quickly
d. goods you sell

20. Goods and services can be durable. What does this mean?
a. long lasting
b. old
c. new
d. used up quickly

21. Which of the following examples are non-durable goods?

a. mushroom, needle, orange
b. potatoes, quince, radish
c. shoes, tomato, umbrella
d. vegetables, watch, yogurt

22. Investment includes

a. the amount spent on new factories and machinery
b. the amount spent on so stocks and bonds
c. amount spent on consumer goods that last more than one year
d. the amount spent on purchases of art

23. The more efficient the investment, the

a. higher the current ratio
b. lower the current ratio
c. lower the return on investment
d. higher the return on investment

24. The GDP deflator formula is

a. Real GDP/Nominal GDP * 100
b. Nominal GDP/Real GDP * 100
c. (Nominal GDP - Real GDP)/Real GDP * 100
d. (Real GDP - Nominal GDP)/Nominal GDP * 100

25. GDP is measured by

a. the amount of product produced
b. generally dull people
 c. only one approach which is the output approach
d. by the income & expenditures approaches

26. Which of the following are NOT shortcomings of GDP?

a. household production
b. leisure
c. the underground economy
d. annual production

27. GDP is…

a. value of goods and services produced in a country over time
b. taxes paid by citizens over a specific period of time
c. how much a single business produces in a period of time
d. a country’s unemployment rate over a period of time

28. What is included in GDP?

a. intermediate goods, used goods, black market, transfer payment
b. consumption, investment, gov spending, net exports
c. consumption, investment, gov spending, intermediate goods
d. consumption, used goods, transfer payment

29. What is included in GDP?

a. intermediate goods
b. nonproduction transactions
c. non market and illegal activities
d. investment spending

30. Import spending ___ GDP and export spending ___ GDP
a. increases, decreases
b. decreases, increases

31. A period when economy is growing and GDP is rising

a. Expansion
b. GDP
c. Inflation
d. CPI

32. Which of the following is NOT counted in the calculation of GDP?

a. buying a new toaster
b. paying for gas on a Cross Country Road Trip
c. Government spending on Social Security
d. paying for a cleaning service to clean your house

33. What is the largest sector of GDP?

a. net exports
b. consumption
c. investment
d. government spending
34. If a farmer buys a new tractor, which component of GDP is affected?
a. C
b. I
c. G
d. X-M

35. In calculating GDP, household production is

a. included as part of consumption.
b. ignored because it is not a large amount
c. included under employee compensation
d. not included because there is no market transaction

36. The amount of money spent from households is which part of GDP calculation?
a. C
b. I
c. G
d. Nx

37. GDP Stands For

a. Greatest Domestic Product
b. Gross Domestic Product
c. Gross Domestic Produce
d. Greatest Domestic Produce

38. The word "final" in the definition of GDP refers to

a. not counting intermediate goods or services
b. the time period when production took place
c. valuing production at market prices
d. counting intermediate goods/ services used to produce GDP

39. When government receipts are exceed spending

a. deficit spending
b. balance budget
c. foreign debt
d. budget surplus

40. As used in the context of GDP calculation, investment would include

a. consumer spending on stocks, bonds, and savings accounts
b. government spending on infrastructure
c. business spending on financial capital, stocks, and bonds
d. business spending on physical capital, new homes & inventory

41. More spending on durable goods would cause an increase in

a. C
b. I
c. G
d. (X-M)
42. Which does NOT count in GDP?
a. road construction by the gov't
b. a new house
c. $10,000 your parents gave you
d. The purchase of a computer at Best Buy

43. A government transfer payment is

a. payment in return for goods and services
b. payment for goods and services already delivered
c. payment for which government receives no goods or services

44. Which is an example of a transfer payment?

a. Medicare Payments to the poor and elderly
b. interest payments on the national debt
c. salary payments to government employees
d. payments to private contractors building a road

45. Which of the following is the component of GDP?

a. Government spending
b. Leading indicators
c. Car price
d. Business cycle

10/3
17/3
24/3 (15 câu) KL
1. How will tax increases affect the aggregate demand curve?
a. It has no effect on the aggregate demand curve
b. It will shift to the right
c. It will shift to the left
d. It will move down the curve

2. If exports increase, Aggregate Demand will

a. shift left
b. decrease
c. shift right
d. remain the same

3. An increase in MPC causes an increase in which of the following?

a. MPS
b. Spending multiplier
c. Savings Rate
d. Aggregate Supply

4. In the multiplier effect the most important aspect is

a. Consumption
b. Trade
 c. Government expenditure

5. Which of the following is NOT a characteristic of aggregate demand?

a. Decreases with increases in price
b. Shifts according to changes in preference
c. Upward-sloping
d. combination of all buyers in the market

6. If consumer spending increases, Aggregate Demand will

a. decrease
b. increase
c. remain the same
d. shift left

7. In macroeconomics Aggregate Demand (AD) is the...

a. partial demand for initial goods and services
b. total demand for good and services
c. amount of things some consumers like to purchase
d. None of these

8. The multiplier effect states that…

a. A change in GDP leads to a smaller change in AD
b. Change in a component of AD leads to a greater change in GDP
c. Change in a component of AD leads to a smaller change in GDP
d. A change in GDP leads to a greater change in AD

9. ___ are components of consumer spending that affect aggregate demand.

a. Expected rates of return on investment
b. Taxes
c. Exchange rate changes
d. Government spending programs

10. The multiplier is ___ than 1 because a change in autonomous expenditure changes induced
expenditure.
a. Greater than
b. Less than
c. Equal to

11. Which of the following would NOT cause a shift in the aggregate demand curve?
a. a change in consumption spending
b. a change in the price level
c. a change in investment
d. a change in net exports

12. Increases in wealth...

a. Increase AD
b. Decrease AD
c. Increase SRAS
 d. Decrease SRAS

13. The value of the spending multiplier increases when

a. imports increases
b. tax rates are increased
c. the marginal propensity to save decreases
d. exports increase

14. Which of the following is NOT included in GDP?

a. financial assets
b. capital expenditures
c. new construction
d. our exports

15. The___ the___, the ___ the multiplier.

a. lower, MPC, greater
b. greater, MPC, greater
c. greater, MPC, lower
d. greater, MPS, greater

31/3 (30 câu) KL

1. GDP is a measure of…
a. wealth
b. investment
c. inflation
d. spending

2. The multiplier effect refers to:

a. government regulations that affect the GDP
b. any change in aggregate spending always decreases GDP
c. changes in aggregate spending create bigger change in GDP
d. the MPS will always be greater than 1

3. GDP is a measure of the

a. Total value of goods and services produced each quarter
b. unemployment
c. inflation
d. Total value of all goods and services produced in a year

4. GDP can be used to measure...

a. Quality of life
b. Standard of living
c. Quality of products & services
d. Population

5. What does GDP measure?

a. The value of demand

 b. The value of economic activity
c. The value of price
d. The value of people

6. What does Real GDP measure?

a. Total production after price changed
b. Total production in $ after removing effect of price changes
c. Half the production of the country
d. Self esteem of citizens

7. Real GDP
a. GDP in real life
b. GDP calculated with regards to inflation
c. GDP calculated with current prices
d. There are two types of GDP?

8. If unemployment begins to increase what can we expect to happen to GDP?

a. It will fall
b. It will rise
c. It will remain the same

9. What is disposable income?

a. The money you make working that you then throw in the trash
b. The money left after taking out taxes
c. The money left after taking out all living expenses
d. A new marketing game

10. The expenditures approach to calculating GDP sums...

a. consumption, interest, government spending and net exports
b. rent, investment, profit, and wages
c. consumption, investment, government spending, net exports
d. rent, interest, profit and wages

11. The incomes approach calculates GDP by summing...

a. consumption, investment, government spending, net exports
b. rent, investment, profit, and wages
c. consumption, investment, government spending
d. rent, interest, profit, wages

12. Which is an example of a transfer payment?

a. Medicare Payments to the poor and elderly
b. interest payments on the national debt
c. Salary payments to government employees
d. payments to private contractors building a road

13. An example of a transfer payment would be…

a. a private pension payment
b. a social security payment
 c. lottery ticket winnings
d. workman's compensation payments

14. Which of the following is an example of a transfer payment:

a. Unemployment compensation
b. Weekly paycheck
c. Investment dividend
d. Corporate bond

15. Number (2) in the picture is what GDP method?

a. Output method
b. Income method
c. Expenditure method
d. Mathematical method

16. What does Okun's Law relationship show?

a. unemployment and inflation
b. inflation and output
c. demand and supply
d. unemployment and output (GDP)

17. Tax whose burden cannot be shifted is?

a. Direct Tax
b. Indirect Tax
c. Progressive Tax
d. Regressive Tax

18. If the MPS = 0.1, then the multiplier equals

a. 1
b. 5
c. 9
d. 10

19. Suppose that a financial crisis decreases investment spending by 100 billion, propensity to
consume is 0.8 real GDP will
a. decrease, 500 billion
b. decrease, 200 billion
c. decrease, 800 billion
d. increase, 400 billion
20. An increase in the marginal propensity to consume
a. increases the multiplier
b. shifts the autonomous investment line upward
c. decreases the multiplier
d. shifts the autonomous investment line downward

21. The marginal propensity to consume:

a. has a negative relationship to the multiplier
b. equal to one
c. represents the portion of consumers' disposable income spent
d. all of the above

22. In a simple, closed economy, if displosable income increases by $1k and consumption increases
by 600, the MPC is
a. $600
b. $400
c. 1.67
d. 0.6

23. Disposable income increases $2000 to 3000. If consumption increases 1500 to 2100, the MPS is
a. $600
b. $400
c. 0.8
d. 0.4

24. Aggregate consumption function C=200+0.8YD, if YD=$500, then autonomous consumption is

a. 0
b. 200
c. 400
d. 600

25. If planned investment spending increases, the planned aggregate spending line
a. becomes flatter
b. shifts down
c. becomes steeper
d. shifts up

26. If the slope of the aggregate expenditures curve is 0.75, the multiplier is
a. 1
b. 4
c. 5
d. infinity

27. Keynesian economic policies are characterized by all the following EXCEPT
a. supply-side focus
b. role for fiscal and monetary policies to stabilize the economy
c. focus on the short run
d. emphasis on total spending in the economy
28. Investment includes
a. the amount spent on new factories and machinery
b. the amount spent on so stocks and bonds
c. amount spent on consumer goods that last more than one year
d. the amount spent on purchases of art

29. The level of planned investment spending is negatively related to the:

a. Rate of return on investment
b. Level of consumer spending
c. Level of actual investment spending
d. Interest rate

30. What is the definition of Budget Deficit?

a. When the government spends more on programs then it collects
b. Total value of goods/services produced in a country
c. Economic activity slows down
d. When a government's revenue exceeds its expenditures

7/4
1. Which of these is not a goal of monetary policy?
a. discount rate stability
b. economic growth
c. price stability
d. interest rate stability
2. which is not a function of money?
a. medium of exchange
b. unit of account
c. store of value
d. fiat money
3. The money multiplier is equal to
a. 1 over the excess reserves
b. 1 over the required reserves
c. 1 over the MPS
d. 1 over the reserve ratio
4. Which of the following is not considered money?
a. currency
b. checkable deposits
c. comic book collection
d. savings
5. What are components of the M1 Money Supply?
a. checkable deposits, traveler’s checks, savings
b. checkable deposits, money in circulation, savings
c. everything in M2 surplus
d. Checkable deposits, money in circulation, traveler’s checks

6. What is the definition of a Money Multiplier?

a. the purchases of sale of government securities
 b. the Fed’s main policy-making committee
c. Number by which a change in the monetary base is multiplied
d. a bank’s actual reserves minus is desired reserves
7. decreasing the Money Supply results in
a. A lower interest rate
b. a higher interest rate
c. more money available
8. Name the favorite method of the Fed to shrink the money supply
a. Sell Bonds
b. lower the discount rate
c. Buy bonds
d. lower the required reserve ratio
9. What is the most common and stable measurement of the money supply?
a. M1 c. M3
b. M2 d. M4
10. What is the primary role of money in the economy….
a. set interest rates
b. assist foregntrade
c. identify prices
d. medium of exchanges
11. when the money supply is increased what is likely to happen
a. price level decrease
b. price levels stays the same
c. the dollar will be able to buy more goods
d. the price level will increase
12. What is the function of money when you buy a new car?
a. store of value
b. medium of exchange
c. unit of account
d. durability
13. a central bank that desires to reduce the quantity of money in the economy can:
a. raise the reserve requirement
b. buy bonds in open market operations
c. lower the discount rate
d. engage in quantitative easing
14. Which reserves requirements let the Central bank have the greatest impact on the money supply?
a. 5% reserve requirement
b. 10% reserve requirement
c. 15% reserve requirement
d. 100%reserve requirement
15. According to the quantity theory of money, what is the primary cause of inflation?
a. increase in GDP
b. increase in prices
c. increase in Velocity
d. increase in Money Supply
16. which of the following institutions determines the quantity of money in the economy as impt
a. Department of the Treasury
b. Federal Open Market Committee
 c. Central Bank
d. Federal Reserve Board of Governors
17. When I decide how much to sell my used car, I am using money as…
a. unit of account
b. barter token
c. medium of exchange
d. store of value
18. What is the relationship between reserve ratio and the simple money multiplier?
a. the simple money multiplier is 1/r
b. the simple money multiplier is 100/r
c. the simple multiplier is rx100
d. no relationship
19. which is NOT a method by which the central bank expands or contracts the money supply?
a. regulates the money supply through open market operations
b. through changes in the required reserve ratio
c. changes in the discount rate it changes to member banks
d. changes in requirements concerning fiat and commodity money
20. The max change in the money supply: new deposits of $5000 and a reserve ratio of 10%
a. $4500
b. $5000
c. $45000
d. 500000
21. which of these NOT a function of a central bank
a. lender of the last resort
b. managing the public debt
c. exchange foreign currencies
d. setting interest rates and controlling the money supply
22. a central bank can decrease the money supply by
a. buying gold from overseas Central bank
b. Print out more money
c. selling government securities
d. decrease interest rate
23. a central bank is not responsible for
a. implementing monetary policy
b. implementing fiscal policy
c. keep an eye on economic system
d. change interest rate
24. which term describes the main function of a central bank?
a. provides banking services to the public
b. lender of last resort to other banks
c. stabilizes economy by using a monetary policy
d. is a shareholder
14/4 (30 câu) (NL)
1.What are two tools of fiscal policy?
a. taxing and spending
b. spending and GDP growth
c. taxing and interest rates
d. interest rates and reserve requirements
2. The Monetary policy is
a. Immigration laws for ownership of land
b. The increase of global trade tax
c. The control of the supply of money in circulation
3. One example of contractionary fiscal policy
a. reduces taxes
b. increased production
c. increased taxes
d. increased spending
4. Contraction Policy of the fiscal policy
a. increases government spending and reduces taxes
b. decreases government spending and increased taxes
c. decreases government spending and decreases taxes
d. increases government spending and increases taxes
5. Which of the following is a problem of fiscal policy?
a. Unstable SRAS
b. Lag-time
c. Crowding-Out
d. Crowding-In
6. What is a fiscal policy?
a. decisions made by the government for taxation
b. a monetary one
c. a policy that’s physical
d. a policy for governments so they don’t hurt each other
7. Which of the following is an example of fiscal policy?
a. Decrease the exchange rate
b. Increase its budget surplus
c. Raise the minimum wage
d. Reduce the rate of interest
8. Which of these is NOT a type of Fiscal Policy?
a. Inflationary
b. Contractionary
c. Expansionary
d. None of these answers
9. The Expansionary Policy of the fiscal policy
a. Increases government spending and reduced taxes
b. Increased government spending and increased taxes
c. Decreased government spending and increased taxes
d. Decreased government spending and decreased taxes
10. What is fiscal policy?
a. Policy created by Gov, corporations to control the economy
b. State policy that attempts to manage income
c. Policy created by Thomas Jefferson to help the economy
d. Gov. policy that attempts to manage the economy
11. Which of these is NOT a form of fiscal policy
a. Increasing VAT
b. Offering Subsidies
c. Lowering Income Tax
 d. Taxing Cigarettes
12. During an expansion, Congress would likely use fiscal policy to:
a. raise the reserve requirement
b. decrease interest rates
c. buy government bonds
d. decrease taxes
13. Which one of these is NOT a problem with fiscal policy?
a. lag time problem
b. getting fiscal policy to work in an open economy
c. counter cyclical effect
d. higher interest rates
14. Which is a part of contractionary fiscal policy
a. Increase in the discount rate
b. Reduction in taxes
c. Decreased government spending
d. Buying government bonds
15. The Government sometimes uses Fiscal policy to reduce
a. Unemployment
b. AS
c. AD
d. Inflation
16. Expansionary Fiscal Policy is like the ____ on a car
a. gas
b. steering wheel
c. brakes
d. air freshener
17. Expansionary Fiscal Policy results in what?
a. Increased money supply
b. Shifting AD to the left
c. Shifting AD to the right
d. Shifting AS to the right
18. Which of these is a part of discretionary fiscal policy?
a. tax cuts
b. Medicaid
c. Social Security
d. deregulation
19. What fiscal policy tools can be used to expand the economy?
a. Decrease government spending
b. Both answers
c. Cutting taxes
d. Neither answer
20. An appropriate fiscal policy for a severe recession is:
a. a decrease in government spending
b. appreciation of the dollar
c. a decrease in tax rates
d. an increase in interest rates
21. Which of the following is an example of expansionary fiscal policy?
a. Increasing taxes
 b. Decreasing government transfers
c. Increasing government spending
d. Decreasing interest rates
22. Which of these takes place in contractionary fiscal policy?
a. increases aggregate demand
b. raise the price level
c. increases employment
d. decreasing aggregate demand
23. What is the biggest limiting factor to the success of discretionary fiscal policy?
a. Foreign buyers
b. Lags in policy
c. People who collect disability
d. Fed changes to interest rates
24. What is a trade surplus?
a. Xn>0, more exports than imports
b. The relative price of domestic and foreign goods
c. Xn<0, more imports than exports
d. reduces savings and shifts the supply curve to the left
25. What was the Open Door Policy?
a. Everyone is allowed in China
b. China’s trading ports are completely open to other countries
c. China’s inhabitants allow US citizens to stay with them
d. Africa is allowed to go to Asia
26. Discretionary fiscal policy refers to
a. any delta on govt. spending or taxes that destabilizes economy
b. delta S in taxes & govt. expenditures made to stabilize economy
c. authority President has to delta personal income tax rates
d. Delta in taxes & transfers that occur as GDP delta S
27. A trade deficit impacts on Aggregate Demand because
a. Exports are a leakage from the circular flow of income
b. FDI inflows many ___ investment
c. Jebs many be lost overseas resulting in lower tax revenues
d. All of the above
28. What are the instruments for Fiscal Policy?
a. Interest rates and money supply
b. Quantitatives Easing
c. Government spending and taxation
d. Inflation
29. What is Expansionary Fiscal Policy
a. An increase in government spending and/or cut in taxation
b. Government lending to businesses using soft loans
c. A decrease in gove and/or rise in taxation
d. A decrease in interest rates by the BoE to stimulate economic growth
30. Households provide resources for the economy by
a. not consuming goods
b. providing labor
c. providing loans
d. increasing taxes
21/4 (24 câu) (nha~ + kiu`)
2. What is the United States Central Bank called?
a. The First Bank of the United States
b. The European Central Bank
c. The Federal Reserve
d. The Second Bank of the United States

3. Which of the following is the most liquid?

a. M1
b. M3
c. M2
4. Esther uses money to go out to the movies, what function of money does this illustrate?
a. store of value
b. portability
c. medium of exchange
d. unit of account
5. If inflation=2% and you want to earn 5% on $$ you loan out, what nom. int rate do you need?
a. greater than 7%
b. greater than 10%
c. greater than 2%
d. greater than 5%
6. What are demand deposits?
a. checking account
b. money market accounts
c. savings accounts
d. large scale institutional accounts
7. What is money?
a. Something generally accepted for the exchange of goods
b. gold
c. federal reserve notes
d. anything backed by gold
8. Which of the following entries constitute a liability for commercial banks?
a. Demand deposits of its customers
b. Outstanding loans to firms and household
c. Required reserves in hand at the FED
d. Bonds and Securities
9. What scenario is the graph depicting?
a. inflationary gap
b. depression
c. recessionary gap
d. recession
10. What scenario is the graph depicting between Q* and Q1? (hình)
a. inflationary gap
b. recessionary gap
c. increase in aggregate supply
d. peak in the business cycle
11. What would be the best way for Congress to fix this economy's problem? (hình)
a. Selling Bonds
b. Lowering Taxes
c. Reducing Government Spending
d. Buying Bonds

12. Which of the following is NOT a "tool of the Fed"?

a. Reserve Requirement
b. Discount Rate
c. Open Market
d. Federal Funds Rate

13. If the reserve requirement is 20%, the expansion multiplier is?

a. 4
b. 5
c. 10
d. 2

14. Which of the following does the Central Bank use most often to combat a recession?
a. selling securities
b. buying securities
c. reducing the reserve requirement
d. increasing the reserve requirement

15. To reduce inflation, the Central Bank could…

a. expand the money supply
b. contract the money supply
c. reduce the discount rate
d. buy bonds

16. The neutrality of money refers to the situation where...

a. increases in the money supply cause no real increase in output
b. Increases in interest rates are matched by decreases in bond
c. money has not been the cause of war
d. decreases in the money supply result in increase in Interest Rates

17. The real interest rate is stated simply as the…

a. the price of borrowed money in the future
b. Inflation rate minus the CPI
c. nominal interest rate minus the expected inflation rate
d. nominal interest rate plus the expected inflation rate

18. This would most likely be caused by… (hình)

a. Central bank taking action
b. an increase in national income
c. a decrease in the price level
d. Central Bank lowering the discount rate
19. If a nation engages in expansionary fiscal policy (no affect on taxes) what will occur?
a. supply of loanable funds will increase and IR will drop
b. interest rates will increase
c. purchase of domestic stocks and bonds will decrease
d. AD will shift to the left

20. What tool does the Central Bank use most often?
a. Discount Rate
b. Reserve Requirement
c. Open-Market Operations
d. Funds Rate

21. Which of the following changes would increase the size of the money multiplier?
a. a decrease in the reserve ratio
b. people holding more their money outside of banks
c. tightening regulations on loans
d. congress issuing a tax cut

22. Which of the following is an example of contractionary monetary policy?

a. increasing the reserve requirement
b. decreasing the discount rate
c. purchasing government securities
d. decreasing taxes

23. Which of the following policies would cause a movement from A to B on the graph? (hình)
a. Contractionary Policy
b. Raising the Reserve Requirement
c. Tax Increase
d. Fiscal Stimulus Package

24. An increase in daily transactions that consumers make due to an increase in income would likely
a. shift the supply curve of loanable funds
b. shift the demand curve in money market to the right
c. shift supply curve in the money market to the right
d. shift supply curve in the money market to the left

28/4 (30 câu)

1. In the IS-LM model, when taxes increase, interest rates ___
a. increase
b. decrease
c. stay the same
d. do a little dance

2. Who developed the IS-LM model

a. Hicks and Hansen
b. Hicks and Allen
c. Hicks and Hag
d. Adam Smith and Alfred Marshal
3. The slope of the money supply curve is:
a. positive
b. negative
c. vertical
d. horizontal

4. Looking at the Keynesian Cross, when investment decreases, Y:

a. increases
b. decreases
c. stay the same
d. shifts

5. Spending increases, the IS curve ___ and Y ___

a. shifts to the right; increases
b. shifts to the left; decreases
c. shifts to the right; decreases
d. shifts to the left; increases

6. When Taxes increase, the IS curve ___ and Y ___

a. shifts to the right; increases
b. shifts to the left; decreases
c. shifts to the right; decreases
d. shifts to the left; increases

7. We derive the LM curve by:

a. shifting the money demand curve by changing Y
b. shifting the money supply curve by changing Y
c. shifting the money demand curve by changing R
d. shifting the money supply curve by changing R

8. Increasing the Money Supply will result in what?

a. AD shifts to the right
b. AD shifts to the left
c. There will be no effects
d. Investment will decrease

9. Slope of the IS curve?

a. Vertical line
b. Positive slope
c. Horizontal line
d. Downward sloping

10. To contract money supply, strategy must be to

a. Increase reserve requirement rate
b. Buyback T-bills
c. Buy dollars
d. Reduce rediscount rate
11. What is the money supply?
a. the total quantity of foreign currency available within the economy
b. the total quantity of money available within the economy
c. the total quantity of money issued by the central bank
d. the total quantity of money within commercial banks

12. Which of the following variables in the IS equation are not exogenous
a. G, government spending
b. T, taxes
c. i, interest rates
d. C, household consumption

13. Looking at the Keynesian Cross, when investment increases, Y:

a. increases
b. decreases
c. stays the same
d. shifts

14. Macro: IS-LM model, or Hicks-Hansen model - what does IS-LM stand for
a. Idiosyncratic supply/Long-run demand of money
b. Investment-Savings/liquidity preference-money supply
c. Intransitory savings - Leakage of money
d. Who cares - it’s macro

15. Which of the following is not true about the IS-LM model?
a. It contains information about financial markets
b. It contains information about the Goods market
c. it does not allow for changes in monetary policy
d. it shows the relationship between interest rates and output

16. What does the IS curve show us?

a. all interest rate, output combinations where financial market is in Eq
b. all interest rate, output combinations where goods market is in Eq
c. shows when we are at full employment
d. all interest rate, output combinations where labor market in eq

17. In the IS-LM model, increasing the Money Supply causes interest rates to __ and Y to __
a. increase; increase
b. decrease; increase
c. increase; decrease
d. decrease; decrease

18. What does the LM curve show us?

a. all interest rate, output combinations where financial market is in Eq
b. all interest rate, output combinations where goods market is in Eq
c. shows when we are at full employment
d. all interest rate, output combinations where labor market in equilibrium
19. When interest rates fall, the IS curve:
a. shifts to the right
b. shifts to the left
c. stays the same
d. does a little dance

20. Spending increases, the IS curve ___ and Y ___

e. shifts to the right; increases
f. shifts to the left; decreases
g. shifts to the right; decreases
h. shifts to the left; increases

21. When Taxes increase, the IS curve ___ and Y ___

a. shifts to the right; increases
b. shifts to the left; decreases
c. shifts to the right; decreases
d. shifts to the left; increases

22. The slope of the money supply curve is:

a. positive
b. negative
c. vertical
d. horizontal

23. We derive the LM curve by:

a. shifting the money demand curve by changing Y
b. shifting the money supply curve by changing Y
c. shifting the money demand curve by changing r
d. shifting the money supply curve by changing r

24. Increasing the money supply causes the MS curve to shift to the ___
a. right
b. left
c. middle
d. it does not shift

25. Which of the following is not true about the IS-LM model?
a. it contains information about financial markets
b. it contains information about goods markets
c. it does not allow for changes in monetary policy
d. it shows the relationship between interest rates and output

26. In the IS-LM model, when Government spending increases, interest rates ___ (hình)
a. increase
b. decrease
c. stay the same
d. does a little dance
27 trùng 26

28. Fiscal policy causes the economy to move along the IS curve
a. True
b. False

29. What effect does a change in fiscal policy have on the LM curve
a. the LM curve is unaffected by fiscal policy
b. shifts the LM curve up
c. shifts the LM curve down
d. cannot be determined without knowing specific policy

30. What is an effect of expansionary fiscal policy?

a. inflation decreases
b. unemployment decreases
c. taxes increase
d. price level decreases

12/5 ( 60 câu)

1. GDP is
a. the sum of all currency and coins in circulation
b. the value of all final goods and services produced by govt
c. the value of all goods and services produced anywhere
d. the value of all goods and services produced domestics
2. Which of the following is not true about the IS-LM model?
a. it contains information about financial
b. it contains information about the goods Market
c. it does not allow for changes in monetary policy
d. it shows the relationship between interest rates and output
3. On the IS-LM model , when Government spending increase, interest rates _____

a. increase
b. decrease
c. stay the same
d. do a little dance
4. Final goods and services used to compute GDP refer to:
 a. the sum of all wages paid to laborers
b. the factors of production used to produce output
c. goods and services purchased by the ultimate users
d. the value of outstanding shares of stocks of manufacturers firms
5. Consumption in the US is about ___ of GDP , and it moves relatively little over time.
a. 10%
b. 33%
c. 68%
d. 90%
6. Consumption is the purchase of goods and servicesby:
a. households
b. government
c. business firms
d. foreign buyers
7. Which of the following are most likely classified by economists as consumer durable goods?
a. food, clothing
b. drugs, toys, magazines, books.
c. automobiles, furniture
d. stocks, bonds
8. ___ are now the largest single component of the supply side of GDP, representing over half of GDP
a. durable goods
b. services
c. nonduranle goods
d. structures
9.
10. To compare the GDP of two different countries, it its necessary to use
a. an exchange rate
b. foreign currency
c. currency rates
d. per capita per GDP
11. Investment includes:
a. the amount spent on new factories and machinery
b. the amout spent on so stocks and bonds
c. amout spent on consumer goods that last more than one year
d. the amount spent on purchase of art
12. ___ is about two- thirds of the demand side of GDP, but it moves relatively little over time
a. consumption
b. government
c. investment
d. services
13. ___ which can be approximated by the growth of GDP, determines the prevailing standard of
living
a. trade balance
b. inflation
c. education
d. economic growth
14. If imports exceed exports, as in recent years, then ___ exists
a. trade surplus
 b. trade deficit
c. a trade imbalance
d. trade disequilibrium
15. During the last two centuries the average rate of growth of GDP per capia indust conutries
a. 2%
b. 12%
c. 22%
d. 32%
16. The gap between exports and imports in a nation’s economy is called the
a. trade surplus
b. trade balance
c. trade deficit
d. trade inventory
17. Once every ___ the Census Bureau dose a comprehensive survey of housing and residential
finance
a. month
b. 5 years
c. 10 years
d. 20 years
18. In macroeconomics the connection from inputs to putputs for then entire economy is called
a. a production finction
b. aggregation production function
c. human capital
d. physical capital
19. To achieve high standard of living a nation should
a. increase the tax deduction for child dependents.
b. promote economic growth.
c. use less capital and more labor in the production process.
d. increase welfare payments to the poor.
20. Investment in human capital:
a. ís of minor importance to economic growth
b. can be acquires through on the job training
c. is an important source of economic growth
d. is characterized by both b and c
21. The value of what is produced per worker or per work hour is called
a. economic growth
b. human capital
c. productivity
d. GDP per capia
22. A nation can achieve higher economic growth if
a. it devotes more resources to research and development
b. the productivity of labor declines
c. taxes are imposed on investment in capital
d. more resources are allocated to consumption goods
23. Economists typically mearsure economic growth by tracking:
a. the employment rate
b. the unemployment rate
c. averaged GDP growth
 d. real GDP per capita
24. The employment rate measure:
a. the number of people unemployes/ by the number of peopple employed
b. unemployment workers as a percentage of the labor force
c. unemployed workers as a % of the population sge over 16
d. unemployed workers as a percentage of the population
25. Which of the following factors contribute to economic growth
a. an increase in the average wage rate paid to workers
b. an increase in the standard of living
c. a decrease in the proportion of labor
d. an increase in the proportion of the population that is college educated
26. When society has a higher level of capital per person, it is called
a. physical capotal
b. human capital
c. capital deepening
d. technoiogical gains
27. During the great depression the unemployment rate reached more than __ of the labor force:
a. 25%
b. 45%
c. 65%
d. 85%
28. Even after recessions, the unemployment rate seems to return to the eange of___
a. 2%-4%
b. 4%-6%
c. 6%-8%
d. 8%-10%
29. The type of unemployment that occurs because of a recession is called
a. cyclical unemployment
b. the natural rate of unemployment
c. seasonal unemployment
d. frictional unemployment
34. A university student who is enrolled in school full-time and it's not seeking employment is
a. out of the labor force
b. unemployable and not counted in official stasistics
c. employed in leisure
d. unemployment
35. The effects of inflation are seen in :
a. goods and services only
b. wages and income levels only
c. services and wages only
d. goods, services, wages and income levels
36. The most commonly cited measure of inflation in the US
a. Consumer Price Index (CPI)
b. Deflationary Price Index (DPI)
c. Cumulative Price Index (CPI)
d.
37. Inflation can be calculated in terms of how the overall cost of ___ changes over time
a. all goods
 b. the basket of goods
c. all goods and services
d. all services
38. Inflation implies that the level of all price
a. decrease
b. stays the same
c. increase
d. none of the above
39. Another term used to describe negative inflation is:
a. counter inflation
b. deflation
c. hyperinflation
d. GDP deflator
40. When a price, wage, or interest rate is adjusted automatically with inflation it is said to be
a. indexed
b. COLAed
c. nominally adjusted
d. semi-indexed
41. What distinguishes the real value of a statistic from the nominal value of a statistic
a. timing of announcement
b. adjusting for inflation
c. adjusting for GDp deflator
d. real interest rate
42. The ___ is the norminal interset rate minus the rate of inflation
a. real GDP
b. real interest rate
c. nominally adjusted
d. annualized interest rate
43. The term ‘’ full employment GDP’’ is synonymous with which of the following
a. aggregate GDP
b. Keynesian zone
c. macroeconomic equibrium
d. potential GDP
44. Results when the economy experiences high unemployment and high inflation the same time
a. stagflation
b. deflation
c. reflation
d. recession
45. ___ happens when the economy is producing at its potential and unemployment is at the natural
rate of run
a. the foreign price effect
b. stagflation
c. full employment GDP
d. The interest rate effect
46. In an AD/AS model, the point where the economy has excess capacity is called the
a. Keynesian zone os the AS zone
b. Intermediate zone of the AS curve
c. neoclassical zone of the AD curve
 d. crossing point of the potential GDP line
47. Why is productivity growth considered to be the most important factor in the AD/ASAD/AS
model?
a. its shifts the AD curve in the long-term
b. its shifts the AD curve in the short-term
c. its shifts the AS curve in the short-term
d. its shifts the AS curve in the long-term
48. The ___ in an AD/AS diagram is most relevant to Leynes’s Law
a. AS curve
b. AD curve
c. equilibrium
d. AS and AD curve
49. The ___ means that a higher price level leads to lower real wealth
a. employment effect
b. interest rate effect
c. wealth effect
d. foreign price effect
50. Which of the following institutions determines the quantity of money in the economy as important
a. U.S department of the Treasury
b. Federal Open Market Committee
c. Central Bank
d. Federal Reserve Board of Governors
51. Which of the following is considered to be a relatively weak tool of monetary policy
a. quantitative easing
b. altering the discount rate
c. reserve requirements
d. reducing the money supply
52. A central bank that desires to reduce the quantity of money in the economy can
a. raise the reserve requirement
b. buy bonds in open market operations
c. lower the discount rate
d. engage in quantitative easing
53. Which of the following institutions oversees the safety and stability of the U.S banking system
a. Office of the Comptroller of the Currency
b. Federal Financial Institutions exam, council
c. federal open market commitee
d. The federal Reserve
54. When the central bank decides to increase the discount rate, the:
a. money supply increases
b. interest rates decreases
c. interest rates are unaffected
d. Interest rates increase
55. When the central bank decides it will selll bonds using open market operations
a. the money suppy increases
b. interest rate dcrease
c. the monet supply decreases
d. the money suppy is unaffected
56.
57. A ___ is created each time the federal government spends more than it collects in taxes yearly
a. budget deficit
b. bufget surplus
c. corporate tax
d. regressive tax
58. A ___ means that government spending and taxes are equal
a. fiscal budget
b. balanced budget
c. contractionary fiscal policy
d. discretionary fiscal policy
59. The time lag for monetary policy is typically ___ the time lag for fiscal policy
a. longer than
b. shorter than
c. about the same as
d. the same as
60. What go goods like gasonline, tobacco and alcohol typically share in common
a. a progressive tax is imposed on each of them
b. a regressive tax is imposed on each of them
c. they are all subject to government excise tax
d. they are all subject to government fiscal taxes

MIDTERM TEST
1. To increase the money supply, the bank central could:
a. Encourage people to held more cash (currency in circulation)
b. Purchase bonds in open market
c. Increase the government spending
d. Cut taxes
2. An example of government transfer is a:
a. Bequest from a deceased relative
b. Social security payment
c. Expenditure on an interstate highway
d. Salary for a member of the armed forces.
3. Which of the following do economists view as investment spending
a. spending on physical capital
b. mutual fund investing
c. stocks
d. bonds
4. The money multiplier is:
a. negatively related to high-powered money.
b. positively related to the excess reserves ratio.
c. negatively related to the required reserve ratio.
d. positively related to holdings of excess reserves.
5. Which of the following is a macroeconomic issue?
a. How federal government budget deficits affect interest rates
b. The cause of a decline in the price of peanut butter
c. What determines the amount a firm will produce
d. How a rise in the price of sugar affects the market for sodas
6. A decrease in the MPC may cause:
 a. An increase in the equilibrium income
b. A fall in the equilibrium income
c. It does not affect the equilibrium income
d. The government spending multiplier
7. Suppose that in year 1 an economy produces 100 golf balls that sell for $3 each and 75 pizzas that
sell for $8 each. The next year the economy produces 110 golf balls that sell for $3.25 each and 80
pizzas that sell for $9 each.. The growth rate of nominal GDP from year 1 to year 2 is:
a. 18%
b. 7.8%
c. 10%
d. 8.8%
không có đáp án đúng. Đáp án: 19.7%
8. An increase in the interest rate….
a. Shifs the aggregate demand curve to the left
b. Moves the economy along the aggregate demand curve
c. Shifts the aggregate demand curve to the right
d. Has no effect
9. The variable that connects the market of money and the market
a. The MPS
b. The interest rate
c. The CPI
d. The MPC
10. Alpha’s disposable income increases by $1.000 and he spends $600 of it. Alpha’s:
a. MPC is 0.6 and she consumes $400
b. MPC is 0.4 and she saves $400
c. MPS is 0.4 and she saves $400
d. MPS is 0.4 and she saves $600
11. An increase in the money base that goes into ___ is not multiplied, while an increase that goes
into___ is multiplied.
a. deposits; currency
b. excess reserves; currency
c. currency; excess reserves
d. currency; deposits
12. Suppose that in year 1 an economy produces 100 golf balls that sell for $3 each and 75 pizzas that
sell for $8 each. The next year the economy produces 110 golf balls that sell for $3.25 each and 80
pizzas that sell for $9 each.. Using year 1 as the base year, the growth rate of real GDP from year 1 to
year 2 is:
a. 10%
b. 8.8%
c. 19.7%
d. 7.5%
Không có đáp án đúng. Đáp án: 7.8%
13. The central bank uses three policy tools to manipulate the money supply
a. money multiplier; monetary base; monetary base
b. monetary base; money multiplier; monetary base
c. monetary base; monetary base; money multiplier
d. money multiplier; money multiplier; monetary base
14. If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable
deposits are $800 billion, and excess reserves total $0.8 billion, then the currency ratio is ____
a. 0.50 c = Currency/Deposits
b. 0.05
c. 0.25
d. 0.40
14.1 If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable
deposits are $800 billion, and excess reserves total $0.8 billion, then the money supply is ____ billion
$1200

MS = C + D
15. The aggregate supply curve shows the relationship between:
a. the price level and the quantity of goods and services supplied
b. the level of inputs and aggregate output
c. the price level and the level of inputs
d. the wage rate and the level of employment
16. If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable
deposits are $800 billion, and excess reserves total $0.8 billion, then the M1 money multiplier is
approximately:
a. 0.601
b. 2.0
c. 1.67
d. 2.5 m = 1+c/c+r+e
17. During the Christmas holiday season, depositors typically withdraw more currency from their
accounts. This implies that
a. the money multiplier falls during the Christmas season.
b. the money multiplier rises during the Christmas season.
c. discount borrowing falls during the Christmas season.
d. excess reserves fall during the Christmas season.
18. Keynesians analyze aggregate demand in terms of its four component parts:
a. consumer expenditures, planned investment spending, government spending, and net exports.
b. consumer expenditures, actual investment spending, government spending, and net exports.
c. consumer expenditures, planned investment spending, government spending, and gross
exports.
d. consumer expenditures, planned investment spending, government spending, and taxes
19. Which of the following is macroeconomic topic
a. Why plumbers earn more than janitors
b. The reasons for the rise in average prices
c. Whether the army should buy more tanks or more rockets
d. The reasons for a rise in the price of orange juice
20. The required reserve ratio is 15 percent, currency in circulation is $400 billion, checkable deposits
are $1000 billion, and excess reserves total $1 billion, then the money multiplier is approximately:
a. 0.551
b. 2.67
c. 2.55
d. 2.35
21. According to the keynesians, an increase in taxes, other things equal, shifts the aggregate _____
curve to the _____.
A) demand; right

B) demand; left

C) supply; left

D) supply; right

21.1) According to the Keynesians, an increase in government spending, other things equal, shifts the
aggregate _____ curve to the _____.

A) demand; right

B) demand; left

C) supply; left

D) supply; right

22. The aggregate demand curve is:

a. the total quantity of an economy's intermediate goods demanded at all price levels.
b. the total quantity of an economy's final goods and services demanded at different price
levels.
c. the total quantity of an economy's final goods and services demanded at a particular price
level.
d. the total quantity of an economy's intermediate goods demanded at a particular price level.

23. The government institution that has responsibility for the amount of money and credit supplied in
the economy as a whole is the:

a. central bank
b. monetary
c. bank of settlement
d. commercial bank

24. For a given level of the high power money, a decrease in the excess reserves ratio causes the
money multiplier to ____ and the money supply to___

a. increase, increase
b. decrease, increase
c. decrease, decrease
d. increase, decrease

25. If the marginal rate of tax is 40% and consumer’s income increase from $10.000 to $12.000:

a. the amount of tax paid will increase by $4.800

b. the amount of tax paid will increase by $4.000
c. the amount of tax paid will increase by $800
d. The total tax paid will be $4.800
26. As higher is the MPS:

A. lower is the multiplier.

B. higher is the investment spending

C. higher is the equilibrium income.

D. all the answers are right

27. Changes in aggregate demand can be caused by changes in:

a. wages
b. business costs
c. government spending
d. raw materials costs

28. Suppose that in year 1 an economy produces 100 golf balls that sell for $3 each and 75 pizzas that
sell for $8 each. The next year the economy produces 110 golf balls that sell for $3.25 each and 80
pizzas that sell for $9 each. Using year 1 as the base year, real GDP in year 2 is:

a. $970
b. $1000
c. $900
d. $1,077.05

28.1. Suppose that in year 1 an economy produces 100 golf balls that sell for $3 each and 75 pizzas
that sell for $8 each. The next year the economy produces 110 golf balls that sell for $3.25 each and
80 pizzas that sell for $9 each. Using year 1 as the base year, real GDP in year 1 is:

e. $970
f. $1000
g. $900
h. $1,077.05

29. Suppose that the aggregate consumption function is given by the equation C = 200 + 0.8YD,
where C represents consumption and YD represents disposable income. If disposable income is $500,
autonomous consumption is:

a. $0
b. $400
c. $600
d. $200

The formula is C = A + MD. That is to say, C (consumer spending) equals A (autonomous

consumption) added to the product of M (marginal propensity to consume) and D (true
disposable income). so answer is just 200

30. If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable
deposits are $800 billion, and excess reserves total $0.8 billion, then the money supply is:
A) $8000.

B) $1200.

C) $1200.8.

D) $8400.

31. The Keynesian analysis of aggregate demand indicates that a change in taxes:

(a) shifts the aggregate demand curve in the same direction as the change in government spending.

(b) shifts the aggregate demand curve in the direction opposite to that of the change in governments
pending.

(c) moves the economy along the aggregate demand curve rather than shifting it.

(d) has no effect on aggregate demand.

32. Suppose that the aggregate consumption function is given by the equation C = 200 + 0.8YD,
where C represents consumption and YD represents disposable income. If disposable income is $500,
autonomous consumption is:

e. $0
f. $400
g. $600
h. $200

33. Point out the monetary policy instrument

a. a cut in government purchase of goods and ser

b. An increase in direct taxes
c. Open-market operations
d. Freezing pensions

34. If the required reserve ratio is one-third, currency in circulation is $300 billion and checkable
deposits are $900 billion, then the money supply is:

(a) $2700.

(b) $3000.

(c) $1200.

(d) $1800.

35. The primary reason for the creation of the Federal Reserve System was:

a. the desire to increase the demand for government bonds.

b. the desire to stabilize short-term interest rates.

c. the desire to have a lender of last resort.

d. the desire to eliminate state-chartered banks.

36. The effect of open market operations on is much more uncertain than the effect on

a. high-powered money, high-powered money

b. reserves, high-powered money
c. high-powered money, reserves
d. reserves; reserves

37. The aggregate demand curve slopes downward because a decrease in the price level means
a____in the real money supply and therefore a____level of real spending.

a. decrease; lower
b. increase; higher
c. decrease; higher
d. increase; lower

38. if the required reserve ratio is one-third, currency in circulation is $300 billion, and checkable
deposits are $900 billion, then the currency ratio is

a. 0.375.
b. 0,33
c. 0.25.
d. 0.67

39. Suppose that in year 1 an economy produces 100 golf balls that sell for $3 each and 75 pizzas that
sell for $8 each. The next year the economy produces 110 golf balls that sell for $3.25 each and 80
pizzas that sell for $9 each. The value of norminal GDP in years 1 and 2 respectively is:

$900 and $1,077.50

40. A cut in direct taxes on households income

a. Has no effect
b. Shifts the aggregate demand curve to the left
c. Shifts the aggregate demand curve to the right
d. Moves the economy along the aggregate demand curve

Bữa cuối

1. GDP is

A. the sum of all currency and coin in circulation

B. the value of all final goods and services produced by government

C. the value of all final goods and services produced anywhere in the economy

D. the value of all final goods and services produced domestically

2. Which of the following statements is not true about the IS-LM model?

A. It contains information about financial market

B. It contains information about the goods market

C. it does not allow for changes in monetary policy

D. it shows the relationship between interest rates and output

4. On the IS-LM Model, when Gov spending increases, the interest rates….

A. increase
B. decrease
C. stay the same
D. do a little dance

5. Final G&S used to compute GDP refer to:

A. the sum of all wages paid to labors

B. the factors of production used to produce output

C. G&S purchased by the ultimate users

D. the value of outstanding shares of stock of manual firms

6. Consumption in the US is about …. of GDP, and it moves relatively little over time.

A. 10%
B. 33%
C. 68%
D. 90%

7. Consumption is the purchase of G&S by

A. household
B. government
C. business firms
D. foreign buyers

8. ___ are now the largest single component of the supply side of GDP representing over half of
GDP

a. durable goods
b. services
c. nondurable goods
d. structure

9. to compare the GDP of 2 different currencies, it is necessary to to use

a. an exchange rate
 b. foreign currency
c. currency rates
d. per capita per GDP

10. ___ which can be approximately by the growth of GDP, determined the prevailing standard living

a. trade balance
b. inflation
c. education
d. economic growth

11. During the last 2 centuries the average rate of growth of GDP per capita in industrial countries

a. 2%
b. 12%
c. 22%
d. 32%

12. The gap bw exports and imports in a nation’s economy is called the

a. trade surplus
b. trade balance
c. trade deficit
d. trade university

13. Once every ___ the Census does a comprehensive survey of housing and residential finance

a. month
b. 5 years
c. 10 years
d. 20 years

14. In macroeconomic, the connection from inputs to outputs for the entire economy is called

a. a production function
b. aggregate production function
c. human capital
d. physical capital

15. to achieve a high standard of living, a nation should

a. increase the tax deduction for child dependents

b. promote economic growth
c. use less captital and more labour in the production process
d. increase welfare payments to the poor

16. Investment in human capital

a. is of minor importance to economic growth

b. can be acquired through on-the-job-training
c. is an important source of economic growth
 d. is characterised by both b & c

17. the value of what is produced per worker or per work hour is called

a. economic growth
b. human capital
c. productivity
d. GDP per capital

18. a nation can achieve higher economic growth if

a. it devotes more resources to research and development

b. the productivity of labor declines
c. taxes are imposed on investment capital
d. more resources are allocated to consumption goods

19. economists typically measure economic growth by tracking

a. the employment rate

b. the unemployment rate
c. average gdp growth
d. real gdp per capita

20. the unemployment rate measures

a. the number of people unemployment/by the number people empl

b. unemployment workers as a percentage of the labor force
c. unemployment workers as a% of the population age over 16
d. unemployment workers as a % of the population

21. which of the following factors contribute to economic growth

a. an increase in the average wage rate paid to workers

b. an increase in the standard of living
c. a decrease in the productivity of labor
d. increase in the proportion of the population that is educated

22. when society has a higher level of capital per person, it is called

a. physical capital
b. human capital
c. capital deepening
d. technological gains

23. even after recessions, the unemployment rate seems to return to the range of___

a. 2-4%
b. 4-6%
c. 6-8%
d. 8-10%
25. the type of unemployment that occurs because of a recession is called

a. cyclical unemployment
b. the natural rate of unemployment
c. seasonal unemployment
d. frictional unemployment

26. during the deep recession of the early 1980s and 07-09, unemployment reached rougly

a. 10%
b. 20%
c. 30%
d. 40%

27. a university student who is enrolled in school full time and it’s not seeking employment is

a. out of the labour force

b. unemployment and not counted in official statistics
c. employment in leisure
d. unemployment

28. the effects of inflation are seen in:

a. goods and services only

b. wages and income levels only
c. service and wages only
d. goods and services, wages, income levels

29. the most commonly cited measure of inflation in US is

CPI