An increase in which of the following would reduce the Greek balance-of-trade deficit?

The value of foreign currency relative to the EURO

What is macroeconomics?

Studies on the behavior of the aggregate economy

If ECB sells a significant amount of gov. bonds in open market, what will occur?

The total amount of loans made by com. banks will decrease.

A Lorenz curve can be used to evaluate which of the following economic issues?

The degree of equity in income distribution

What will most likely occur as a result of an increase in laborproductivity in an economy?

An increase in output and a decrease in inflation

Which of the following is true when the velocity of money falls?

Increase in money supply will have less effect on nom. GNP

What is frictional unemployment?

The time period between one job to another.

The long run aggregate supply will shift to the right whenever

factors of production (such as labor and capital) increase.

Which of the following would cause the aggregate demand curve to shift to the right?

A new law that make gov. to cover the full cost for elderly.

What is production factors?

It's the land, labour and capital we use in production.

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Basic macroeconomics

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Minor test in macroeconomics

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Questions 15

Answers

1
An increase in which of the following would reduce the Greek balance-of-trade deficit?
Greek rate of inflation compared to other countries
Greek demand for foreign goods and services
The Greek budget deficit
The value of foreign currency relative to the EURO
2
Whenever the economy is in recession, we can expect:
unemployment to decrease
investment to decrease
incomes to increase
all of the above
3
What is macroeconomics?
Factors affecting decisions made by firms/individuals.
Study on how to invest your money
How to set balance in your assets and liabilities
Studies on the behavior of the aggregate economy
4
If ECB sells a significant amount of gov. bonds in open market, what will occur?
The money supply will increase
The total amount of loans made by com. banks will increase.
Rates of interest will decrease
The total amount of loans made by com. banks will decrease.
5
A Lorenz curve can be used to evaluate which of the following economic issues?
The allocative and technical efficiency of markets
The degree of specialization and growth within countries
The equilibrium of market prices and quantities in a country
The degree of equity in income distribution
6
What will most likely occur as a result of an increase in laborproductivity in an economy?
A decrease in both money demand and money supply
A left-shift in the SR AS curve and decrease in Y
An increase in interest rates and a decrease in investment
An increase in output and a decrease in inflation
7
What does the word 'economy' means?
Eco = environment
Market prices
Banking/how to operate a bank
'Rules of the house'
8
The diagram is curves for a normal good. The equilibrium price could rise from P1 to P2 if
consumers’ incomes increased
the price of a complementary product increased
P2 were set as a legal maximum
subsidies on the product increased
9
Which of the following is true when the velocity of money falls?
Output will be greater for a given money supply .
The ECB will decrease the money supply .
A change in the money supply will affect output only .
Increase in money supply will have less effect on nom. GNP
10
What is frictional unemployment?
Mismatch between labour supply and - demand.
Lose jobs during downturns in the business cycle.
The time period between one job to another.
Periodic unemployment created by seasonal variations.
11
The long run aggregate supply will shift to the right whenever
factors of production (such as labor and capital) increase.
the price level increases.
expenditures (such as consumption and net exports) increase.
the prices of production inputs decrease
12
Fiat money, such as the EURO bills we use now-a-days:
s printed and introduced into the economy by the ECB
Has no intrinsic value at all.
Is backed by gold?
is based on the amount of precious metals held by the ECB
13
Which of the following would cause the aggregate demand curve to shift to the right?
A wave of pessimism afflicts consumers.
A new law that make gov. to cover the full cost for elderly.
Higher real interest rates.
The stock market crashes.
14
An increase in which of the following would cause an increase in aggregate supply?
Prices of imports
Labor productivity
Consumer spending
The wage rate
15
What is production factors?
It's machines and hard labour.
It's everything we can add value to.
It's the land, labour and capital we use in production.
It's the natural resources, people and money we use.

Basic macroeconomics Flashcards | StudBud