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 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
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