Macroeconomics2

A detailed illustration of macroeconomic concepts including IS-LM models, graphs of supply and demand, and symbols of currency, in a vibrant classroom setting.

Macroeconomics Mastery Quiz

Test your knowledge of macroeconomic principles with our comprehensive quiz featuring 29 questions. Covering key concepts such as IS-LM models, monetary policy, and trade theories, this quiz is perfect for students and enthusiasts alike.

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Multiple-choice questions
Real-world applications
In-depth explanations

29 Questions7 MinutesCreated by AnalyzingEagle42

32.Increasing the average tax rate (if LM is vertical) will lead to:

A) GDP growth;

B) decrease of unemployment;

C) increase of the interest rate;

D) decrease of accumulation.

33.If the IS equation equation is Y = 250-100 * r, the money demand is described by the equation: Md / p = 0.5 * Y-25 * r and the real money supply is 122 mld, in conditions of simultaneous equilibrium on the goods and services market and the money market?

A) 2%;

B) 3%

C) 4%;

D) none of the variants.

34.In a closed economy, described by an IS-Lm model, the following are known: inclination, arginal to consumption c = 0.9, tax rate t = 10%; the equation of investment demand I = 100-100 * r (r being the interest rate), and the equation of demand for money is Md \ p = 0.6 * Y-1000 * r. Then the GDP variation from the initial equilibrium level resulting from the increase in autonomous taxes by 100 u.m. It is:

A) 360 u.m.

B) -360 u.m.

C) -400 u.m.

D) none of the variants.

35.In an economy described by the IS-LM model, the following are known: t = 10%, c = 0.9, I = 500-100 * r, and Md / p = 0.3 * Y-500 * r. Then a 100 billion government spending cut will lead to a change in the budget deficit (delta BD) with:

A) -140 billion

B) 60 billion

C) -60 billion

D) none of the variants

36.Which of the following elements causes the slope of the IS curve to change?

A) change in public spending;

B) modification of the autonomous taxes;

C) changing the tax rate;

D) changing the elasticity of the speculative demand in relation to the interest rate.

37.Decreasing the monetary mass (when LM is vertical) will cause:

A) rotating LM to the right;

B) moving the LM to the right;

C) Decrease of GDP and interest rate;

D) GDP decline and rising interest rates.

38.In an IS-LM model, increasing the tax rate (when LM remains unchanged) will result in:

A) GDP growth;

B) increasing savings;

D) none of the variants.

39.Which of the following elements causes a left shift of the IS curve:

A) lowering the autonomous taxes;

B) increasing the tax rate;

C) Decrease in real monetary mass;

D) none of the variants.

40.In an IS-LM model, increasing the tax rate (when LM is horizontal) will result in:

A) lowering the interest rate;

B) maintaining constant GDP ;

C) maintaining the constant interest rate;

D) none of the variants.

41.The principle of comparative advantage in the case of two countries (a and b) having commercial relations and producing 2 goods shows that:

A) in country A production is higher than in country B

B) labor productivity in country A is higher than in country B for both goods;

C) in country A labor productivity is higher than in country B for a single good;

D) in country A the amount of production resources is higher than in country B

42.The principle of absolute advantage in two countries (a and b) that have trade relations and produce 2 goods shows that:

A) in country A production is higher than in country B

B) labor productivity in country A is higher than in country B for both goods;

C) in country A labor productivity is higher than in country B for a single good;

D) in country A the amount of production resources is higher than in country B

43.The trade terms index indicates:

(a) the ratio between the prices of the goods exported and the prices of the imported goods;

B) the ratio between the value of the exports and the value of the imports;

C) the difference between the growth rates of the prices of the goods exported and of the imported goods;

D) the ratios between the exported goods price index and the imported goods price index.

44.According to Hecksher-Ohlin theory, in the case of an international trade without barriers to trade, the tendency is:

A) price equalization of the factors of production;

B) increasing differences between rich and poor countries;

C) rising economic growth rates for poor countries;

D) rising prices of natural resources.

45.The principle of competitive advantage between two countries (A and B) indicates that:

A) in country A production is higher than in country B;

B) country A is more efficient than country B

C) in country A labor productivity is higher than in country B for a single good;

D) in country A the quantity of production factors is higher than in country B.

46.Which of the following economic policy measures is not considered perfectionist:

A) export taxation;

B) granting of subsidies;

C) establishing a minimum wage;

D) import taxes.

47.Within the balance of external payments are recorded

A) salaries paid to foreign citizens working in Romania;

B) salaries paid to Romanian citizens working abroad;

C) dividends paid to foreign citizens holding shares in companies in Romania;

D) the amounts sent to the country by Romanian citizens working abroad.

48.Balance of payments balance may be:

A) surplus;

B) null;

C) deficient;

D) any of the previous variants.

49.Which of the following economic policies does not help reduce the trade deficit?

A) increasing government spending;

B) granting subsidies to exporters;

C) the devaluation of the national currency;

D) the increase in domestic interest rates.

50.The real exchange rate depends on:

A) domestic productivity of work;

B) GDP / inhabitant;

C) the level of exports;

D) the level of foreign prices.

51.Capital flows recorded in the balance of payments depend on:

A) price level in the domestic economy;

B) the nominal interest rate from abroad;

C) the difference between the real interest rate in the domestic and the foreign ones;

D) the sum of the real interest rate in the domestic and foreign interest.

52.Purchasing Power Parity (PPC) theory indicates:

A) how products change between countries;

B) the way in which the import of a country is formed;

D) the quantity of products that can be bought with a monetary unit in each country.

53.Fixed exchange rates depend on:

A) the demand-to-supply ratio of the currency;

B) monetary policy of the Central Bank of the country;

C) labor productivity in the world;

D) Labor productivity in the host country.

54.Floating exchange rates depend on:

A) the demand-to-supply ratio of the currency;

B) monetary policy of the Central Bank of the country;

C) the fiscal policy of the host country government

D) Labor productivity in the host country.

55.A target exchange rate regime involves:

A) a level of the exchange rate;

B) a combination of fixed and flexible exchange rates;

C) the government sets the level of the exchange rate;

D) dependence of the exchange rate on the demand-offer ratio.

56.Devaluation of the national currency may lead to:

A) increase in imports;

B) decrease in exports;

C) decrease of trade deficit;

D) increasing the trade deficit.

57.Increasing domestic interest more than foreign interest may lead to:

A) increasing capital flows to the outside;

B) increased exports

C) increasing internal investments;

D) the increase of the balance of capital surplus

58.In the first period after the devaluation of the national currency, the following effect occurs:

A) increasing the trade deficit;

B) Decreasing the trade deficit;

C) increasing the volume of imports;

D) decrease in inflation.

59.For Mundell_Fleming, the expansionist monetary policy will lead to:

A) increase of domestic interest;

B) the devaluation of the national currency;

C) increasing capital flows to the interior;

D) lower domestic inflation.

60.The second quadrant of the BP diagram is represented by:

A) the balance of payments curve;

B) balance of trade balance;

C) IS and LM curves;

D) the capital flow curve (CF).

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