PRE-TEST

Quiz

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1. Other things constant, if the anticipated rate of inflation rises, we would expect the nominal interest rate to
   1.   remain unchanged
   2.   rise by the same amount as the increase in the anticipated rate of inflation
   3.   fall by the same amount as the increase in the anticipated rate of inflation
   4.   rise, but by less than the anticipated increase in the rate of inflation
2. Real GDP is gross domestic product measured
   1.   in the prices of a base year.
   2.   in current dollars.
   3.   at a constant output level but at current prices.
   4.   as the difference between the current year's GDP and last year's GDP
3. The natural rate of unemployment is generally thought to be the sum of
   1.   frictional unemployment and cyclical unemployment.
   2.   cyclical unemployment and structural unemployment.
   3.   frictional unemployment and structural unemployment.
   4.   frictional unemployment and seasonal unemployment.
4. Suppose that currently the average inflation rate is 5% per year; however, business firms and labor anticipate that the general price level will increase by substantially more than the 5% over the next two years. Other things constant, these expectations can cause
   1.   an acceleration of the rate of increase in the price level
   2.   an increase in the productivity of business firms and labor
   3.   a decrease in the rate of inflation
   4.   no actual change in the price level but an increase in the level of unemployment
5. What the government can influence macroeconomy?
   1.   Fiscal policy and Net taxes.
   2.   Fiscal policy and Monetary policy.
   3.   Monetary and Disposable.
   4.   Net taxes and Disposable.
6. If the price of goods increase ,what will happen with the demand of money?
   1.   The demand for money is not affected by the price of goods.
   2.   The demand for money will increase
   3.   The demand for money will decrease
   4.   The demand for money curve will change to the left
7. The multiplier effect refers to.
   1.   The phenomenon that occurs when the increase/decrease in GDP.
   2.   The following values are theoretical values based on simplified models, and the empirical values.
   3.   There are two different types of taxes direct taxes.
   4.   The total demand for goods and services produced in the economy over a period of time.
8. Aggregate Demand (AD) using a formula for calculate.
   1.   C + S + T
   2.   C + I + G + (X-M)
   3.   C + I + G
   4.   C + I + G + EX + IM
9. Household, Businesses, and the international sector are called ?
   1.   Public sector
   2.   Private sector
   3.   Market system
   4.   Business system
10. What is “Trade deficit” ?
    1.   The difference between the value of exports and imports
    2.   The situation that exists when imports less than exports
    3.   The situation that exists when imports equal exports
    4.   The situation that exists when imports exceed exports
11. Which one of the following is not the type of exchange rates?
    1.   Domestic Exchange Rate
    2.   Fixed Exchange Rate
    3.   Flexible Exchange Rate
    4.   None of above.
12. If the interest rate in the United State is higher, what will affect to pounds value?
    1.   Decreases the demand for pounds.
    2.   Increases the supply for pounds.
    3.   Make depreciate of pounds against the dollars.
    4.   All of above.
13. The aggregate supply curve is the relationship between the
    1.   Price level and the real output purchases
    2.   Price level and the real output produced
    3.   Price level that producers are willing to accept and the price level purchases are willing to pay.
    4.   Real output purchase and the real output produced.
14. The aggregate demand curve will be increase by
    1.   A decrease in the price level
    2.   An increase in the price level
    3.   A depreciation in the value of the U.S. dollar
    4.   An increase in the excess capacity of factories
15. What are the three characteristics define pure monopoly?
    1.   There is a single seller.
    2.   There are no close substitutes for the firm’s product.
    3.   There are barriers to entry.
    4.   All of above.