macroeconomic issues and analysis MCQs – Page 3

Practise focused macroeconomic issues and analysis questions with marked answers for exam preparation and subject revision.

macroeconomic issues and analysis Mcqs
41. Aggregate supply is the total amount ?
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A. of goods and services produced in an economy.

B. of products produced by a given industry.

C. of labour supplied by all households

D. produced by the government

42. If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?
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A. fluctuate

B. fall

C. rise

D. not change

43. Floating exchange rates are ____ in the short run?
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A. volatile

B. depreciating

C. stable

D. predictable

44. If the economy is at the peak of the business cycle, aggregate demand ____ unemployment _______ inflation _______ and the current account of the balance of payments is likely to move towards _______?
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A. falls; rises; falls; surplus

B. is static; low; rises; deficit

C. rise; falls; rise; deficit

D. falls; falls; falls; surplus

45. With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?
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A. unaffected

B. reduced

C. None of these

D. increased

46. A monetary union means ________, ________ and ________?
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A. permanently fixed exchange rates, free capital movements, a single interest rates

B. a common currency floating exchange rates common monetary policy

C. a common currency a single central bank, common monetary policy

D. permanently fixed capital movements floating exchange rates a fixed structure of interest rates

47. An individual who is not working and who has given up looking for work is classfied as ?
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A. unemployed.

B. a discouraged worker:

C. unemployable

D. hard core unemployed.

48. Which does the government not control directly ?
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A. Spending on education

B. Spending on defence

C. Firms investment decisions

D. Spending on health

49. The record of countrys imports and exports of goods is called its ?
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A. balance of trade:

B. balance of payments on current account

C. visible trade balance

D. balance of payments

50. perfect international capital mobility suggests that international funds will be responsive to ________ differentials?
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A. price

B. current account

C. interest rate

D. tax

51. All of the following are benefits of the single market except ?
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A. it allows countries to exploit their comparative advantage, more fully

B. it intensified competition

C. firm could more readily exploit

D. economies of scal

E. it is easier to book holidays in member countries
52. In the EMU a countrys competitiveness can change because of ?
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A. interest rate adjustment

B. devaluation

C. domestic wage and price adjustment

D. central bank intervention in the Forex

53. The labour force can be defined as ?
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A. The population between school leaving age and retirement age.

B. anyone who is working or actively seeking work

C. Those who could claim benefit if they were to become unemployed.

D. Those of working age who are seeking work and are available to for work at current wage rates.
54. The single European Act committed ________ governments to a ________ in 1992?
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A. Western European, single market

B. European union, single market

C. Western European, single currency area

D. European Union, single currency area

55. In the short run the level of floating exchange rates is determined mainly by ?
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A. trade

B. speculation

C. competitiveness

D. interest rates

56. Government policies that focus on changing interest rates are called ?
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A. supply-side policies

B. fiscal policies

C. incomes policies

D. monetary policies
57. Cyclical unemployment is the ?
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A. Unemployment that occurs during recessions and depressions.

B. Unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.

C. Portion of unemployment that is due to the normal working of the labour market

D. Portion of unemployment that is due to changes in the structure of the economy that results in a significant loss of jobs in certain industries.

58. Government policies that focus on increasing production rather than demand are called ?
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A. fiscal policies

B. monetary policies

C. omes policies

D. supply-side policies
59. If the US economy is forecast to come out of recession because military expenditure has increase then the exchange value of the UK pound will tend to ?
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A. not be affected

B. fluctuate more than it would do therwise

C. depreciate

D. appreciate
60. Which of the following is macroeconomic issue ?
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A. The price of houses in karachi

B. The level of unemployment is pakistan

C. The wage rate for plumbers in Islamabad

D. Your decision to work or stay at home