Macroeconomics

Which of the following is considered a leading economic indicator?

Stock market performance

Consumer price index

Housing starts

Gross domestic product (GDP) growth rate

What is inflation?

A decrease in the general level of prices

An increase in the purchasing power of money

The rate at which the government prints money

An increase in the general level of prices

Which of the following is an example of expansionary fiscal policy?

Decreasing government spending

Increasing taxes

Implementing tax cuts

Increasing government spending

What is the unemployment rate?

The percentage of people not in the labor force

The percentage of people employed

The percentage of people actively seeking employment but unable to find a job

The percentage of people receiving welfare benefits

Which of the following is an example of a regressive tax?

Income tax

Sales tax

Property tax

Capital gains tax

What is the Federal Reserve?

The central bank of the United States

A federal agency responsible for taxation

An international organization promoting global trade

A legislative body overseeing monetary policies

What is the Phillips curve?

A graphical representation of the relationship between inflation and unemployment

A measure of income inequality

A theory explaining the impact of technological advancements on economic growth

A model for analyzing international trade patterns

Which of the following is an example of a contractionary monetary policy?

Decreasing interest rates

Increasing government spending

Selling government bonds

Increasing the money supply

What is the national debt?

The total amount of money held by the government

The accumulated budget surplus over time

The total amount owed by the government due to borrowing

The difference between exports and imports in a country

Which of the following is an example of a public good?

Healthcare services

National defense

Public parks

Cable television subscriptions

What is the law of demand?

As prices decrease, quantity demanded increases

As prices increase, quantity supplied increases

As income increases, demand decreases

As income decreases, demand increases

Which of the following is an example of a trade barrier?

Tariffs

Foreign direct investment

Import quotas

Free trade agreements

What is the difference between monetary policy and fiscal policy?

What is the labor force participation rate?

The percentage of people employed

The percentage of people actively seeking employment but unable to find a job

The percentage of people not in the labor force

The percentage of people receiving welfare benefits

Which of the following is an example of a progressive tax?

Sales tax

Property tax

Income tax

Capital gains tax

What is the multiplier effect?

The impact of changes in government spending on the overall economy

The process of money creation by commercial banks

The relationship between inflation and unemployment

The amplification of initial spending through subsequent rounds of consumption and investment

Which of the following is an example of expansionary monetary policy?

Increasing interest rates

Decreasing government spending

Buying government bonds

Decreasing reserve requirements

What is the balance of trade?

The difference between exports and imports in a country

The total value of goods and services produced within a country's borders

The accumulated budget surplus over time

The total amount owed by the government due to borrowing

Which of the following is an example of a market failure?

Perfect competition

Externalities

Economies of scale

Price ceilings

What is the natural rate of unemployment?

The lowest possible level of unemployment

The rate at which the labor force participation rate equals zero

The rate of unemployment that exists when the economy is at full employment

The rate at which inflation becomes uncontrollable

What is a budget deficit?

The excess of government spending over tax revenues

The difference between exports and imports in a country

The accumulated debt owed by the government

The total amount of money held by the government

Which of the following is an example of expansionary fiscal policy?

Decreasing taxes

Increasing government spending

Implementing austerity measures

Reducing public welfare programs

What is the foreign exchange market?

The market where stocks and bonds are traded internationally

The market for buying and selling goods and services across borders

The market where currencies are exchanged

The market for international investments

What is a recession?

A period of sustained economic growth

A decline in the overall level of prices

A significant contraction in economic activity characterized by declining GDP and increased unemployment

A sudden increase in government spending

Which of the following is an example of a demand-side policy?

Increasing interest rates

Implementing tax cuts

Reducing government spending

Expanding social welfare programs

What is the opportunity cost?

The monetary price of a good or service

The benefit gained from consuming a good or service

The value of the next best alternative foregone when making a choice

The total cost of producing a good or service

Macroeconomics

More Quizzes