Please choose correct answers no explanation and working required.

Question 1

Macroeconomics deals with:

a.

The behaviour of firms

b.

The behaviour of the electronics industry.

c.

The activities of individual units

d.

The economy as a whole

Question2

Which of the following is not a goal of macroeconomics?

a.

Sustained economic growth.

b.

Price stability.

c.

Zero rate of inflation

d.

Full employment

Question3

Which of the following will determine economic growth?

a.

Capital accumulation.

b.

Technological progress.

c.

All of the above.

d.

Rate of saving

Question4

Price stability means that

a.

The inflation rate is equal to zero.

b.

All prices in the economy are constant

c.

The inflation rate is constant

d.

The deflation rate is fluctuating

Question5

A business cycle shows

a.

That recession can be easily predicted

b.

The rise and fall in the number of business enterprises.

c.

The recurrent fluctuations in economic activity.

d.

The fluctuation in Real GDP

.

Question6

Stagflation occurs when the economy experiences

a.

Falling prices and falling output.

b.

Inflation and unemployment occurring at the same time

c.

Rising prices and rising output.

d.

Falling prices and rising output.

Question7

Which of the following is most likely to occur during a time of recovery

a.

An increase in real output

b.

A increase in the unemployment rate

c.

An decrease in the price level

d.

None of the other answers

Question8

During business cycles the opposite of a recovery is

a.

Boom

b.

Peak

c.

Recession

d.

Trough

Question9

Which of the following is an withdrawal in the circular flow of expenditures?

a.

Cars exported to Japan

b.

Goods that domestic producers sell to foreigners

c.

Investment by banks into other company

d.

Dollars put into savings accounts

Question10

Which of the following best describes aggregate supply?

a.

A schedule indicating the level of real out-put that will be purchased at each possible price level

b.

A schedule indicating the level of real out-put that will be produced at each possible price level

c.

A schedule showing the trade-off between inflation and unemployment

d.

A schedule showing the relationship between inputs and outputs

Question11

Structural unemployment

a.

Search and wait unemployment

b.

Unemployment related to the business cycle

c.

Mismatch between the skill available and the skills demanded

d.

Is unemployment related to the seasons of the year

Question12

Which school of thinking believed in the invisible hand?

a.

Marxist school

b.

Keynesian School

c.

Classical School

d.

Communist school

Question13

New and recent entrants into the labour force are ________________ unemployed.

a.

Seasonally

b.

Frictionally

c.

Cyclically

d.

Structurally

Question14

The total production final goods and services in an economy is known as:

a.

None of the other answers

b.

Gross Domestic Product

c.

Supply

d.

National Demand

Question15

The unemployment rate is closely tied to Real GDP. If Real GDP falls:

a.

Unemployment falls

b.

There is improvement in technology

c.

Aggregate demand has risen

d.

Unemployment rises