Macroeconomics2
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.
Challenge yourself with:
- Multiple-choice questions
- Real-world applications
- In-depth explanations
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;
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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