vu eco403 Final Term - Quiz No.20
vu eco403 Macroeconomics Quiz
This quiz belongs to book/course code vu eco403 Macroeconomics of vu organization. We have 22 quizzes available related to the book/course Macroeconomics. This quiz has a total of 10 multiple choice questions (MCQs) to prepare and belongs to topic Final Term. NVAEducation wants its users to help them learn in an easy way. For that purpose, you are free to prepare online MCQs and quizzes.
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Question 1: A rightward shift in the aggregate demand curve can be caused by:
An increase in government spending
An increase in money supply
A decrease in taxes
All of the given options
Question 3: The three major controls of monetary policy are:
Reserve ratios, the discount rate, and moral suasion
Reserve ratios, the discount rate, and open-market operations
Margin regulations, the discount rate, and moral suasion
Margin regulations, the discount rate, and open-market operations
Question 4: The accumulation of all past annual deficits is known as:
Government debt
Budget deficit
Trade deficit
Budget surplus
Question 5: What are the four sources of aggregate demand?
Consumption, investment, taxes, and expenditures
Consumption, investment, wage increases, and government expenditures
Consumption, investment, expenditures, and net exports
Consumption, investment, government purchases, and net exports
Question 6: A lower average money holding means more frequent trips to the bank to withdraw smaller amounts of cash. This causes:
Menu cost of inflation.
Shoe leather cost of inflation.
General inconvenience.
Relative price distortions.
Question 7: An increase of 10% in nominal GDP indicates that:
Real output has increased by 10%.
The aggregate price level has increased by 10%
Real output and the aggregate price level have increased by 5% each
It is possible that all of the increase was caused by an increase in the aggregate price level
Question 8: Nominal gross domestic product is measured in __________ prices while real gross domestic product is measured in __________ prices.
Current; Constant
Constant; Current
Final; Intermediate price
Retail; Whole sale
Question 9: The rate at which commercial banks borrow from the central bank is known as:
Inflation rate
Interest rate
Discount rate
Reserve requirement rate
Question 10: In the Keynesian Cross model, the equilibrium condition for an open economy is given by:
Y = C
Y = C + I
Y = C + I + G
Y = C + I + G + (X- M)