- Which of the following is a tool used by the
Federal Reserve?
A. Stagflation
B. Natural rate of unemployment
C. Price changes
D. Wage changes
E. None of the above - If the nominal interest rate is 6 percent and the
expected inflation rate is 4 percent, what is the real
interest rate?
A. 10 percent
B. 6 percent
C. 4 percent
D. 2 percent
E. –2 percent - How does the U.S. government define
unemployment?
A. Individuals who do not hold a paying job
B. Individuals who have been recently fired
C. Individuals who work part-time but need
full-time work
D. Individuals without a job but looking for
work
E. Individuals who want a job but are not
searching for one because of perceived
availability - What happens to the economy if there is a major
improvement in technology?
A. Aggregate demand increases.
B. Aggregate demand decreases.
C. Aggregate supply increases.
D. Aggregate supply decreases.
E. Aggregate expenditures decrease. - In response to an increase in investment during an
inflationary period, the government should:
A. Lower taxes
B. Increase spending
C. Raise taxes
D. Decrease interest rates
E. Increase interest rates
45. Which of the following is an example of structural
unemployment?
A. Schoolteachers unemployed during the
summer
B. A college graduate looking for his first job
C. A high school student seeking part-time
employment at the local grocery store
D. A worker who just lost her job because she
doesn’t know how to use the new computer
E. None of the above
46. Which of the following is true about the product
market of the circular flow diagram?
A. Businesses pay wages, rent, and profits to
households in return for use of factors of
production.
B. Businesses purchase goods and services from
households in return for money payments.
C. Households pay wages, rent, interest, and
profits to businesses in return for use of
factors of production.
D. The relationship between households and
businesses exists only in a command
economy.
E. The relationship between households and
businesses exists only in an authoritative
economy. - Which of the following is a possible cause of
stagflation?
A. Increases in labor productivity
B. An increase in the price for raw materials
C. Rapid growth and development of an
industry
D. A decline in labor unions
E. A low growth rate of the money supply
48. Fiscal policy could be used to aid which dilemma
most effectively according to a Keynesian?
A. Low aggregate supply
B. Inflation
C. Low aggregate demand
D. Homelessness
E. World hunger
Macroeconomics Full-Length Practice Test 1Macroeconomics Full-Length
Practice Test 1
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