macroeconomic issues and analysis MCQs – Page 4

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

macroeconomic issues and analysis Mcqs
61. Unemployment resulting from changes in the pattern of demand or supply in the economy is called _______ unemployment?
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A. structural

B. technological

C. demand-deficient

D. regional

62. Since 1998 many government have defined unemployment using ?
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A. the number out of work and claiming benefit

B. the percentage of the labour force not in work

C. a labour force survey.

D. the ILO/OECD standardised unemployment measurement
63. Which of the following is not involved with fiscal policy ?
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A. Income tax

B. National insurance

C. VAT

D. Interest insurance

64. The natural rate of unemployment is generally thought of as the ?
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A. ratio of the frictional unemployment rate to the cyclical unemployment rate.

B. Sum of frictional unemployment and cyclical unemployment

C. sum of frictional unemployment and structural unemployment.

D. Sum of structural unemployment and cyclical unemployment.

65. The percentage of the labour force that is unemployed is the ?
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A. Labour force rate.

B. Unemployment population ratio.

C. Unemployment rate

D. employment rate

66. Unemployment resulting from real wages being above their equilibrium level is called _________ unemployment?
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A. frictional

B. natural

C. disequilibrium

D. structural

67. Government policies that focus on changing taxes and government spending are called ?
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A. monetary policies

B. fiscal policies

C. incomes policies

D. supply-side policies

68. Which of the following is not a macroeconomic issue ?
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A. Inflation

B. Economic growth

C. The wages paid to footballers

D. Unemployment

69. Classifying discouraged workers as unemployed would ?
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A. decrease the unemployment rate

B. have an indeterminate impact on the unemployment rate

C. not change the unemployment rate

D. increase the unemployment rate
70. Which of the following is not likely to be government objective ?
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A. Increasing economic growth

B. Increasing the level of exports

C. Increasing government spending

D. Increasing employment
71. Aggregate demand is the total demand for all goods and services in an economy from ?
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A. all sectors of except the rest of the world

B. the household and government sectors

C. all sectors of the economy including the rest of the world.

D. the household sector.

72. An economy that trades with and has financial dealing with other countries is called a/an ________ economy?
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A. open

B. free-trade

C. mixed

D. autarkic

73. Which of the following is a policy instrument as opposed to a government objective ?
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A. lower interest rates

B. Lower unemployment

C. Faster economic growth

D. A better balance of trade position

74. As prices rise, there will be costs of constantly changing price-tags and reprinting price-lists This is called ?
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A. cost-push inflation.

B. menu costs of inflation

C. real balance effect

D. money illusion.

75. If interest rates rise then costs are likely to _______ and demand is likely to _________?
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A. fall; rise

B. rise; rise

C. rise, fall

D. fall; fall

76. The record of countrys imports and exports of goods and services is called its ?
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A. balance of payments on current account

B. balance of payments.

C. balance of trade

D. visible trade balance