VEE Macroeconomic Questions And
Answers Pro
Which of the following transactions would most likely be included in a gross domestic
product (GDP) output calculation:
A. A stay at home mother caring for her children
B. A gallon of tap water consumed
C. Raw materials sold to a steel mill
Answer: B (A gallon of tap water consumed)
Which of the following types of purchases most significantly can be tracked to the overall
economic cycle?
A. Durable goods
B. Nondurable goods
C. Services
Answer: A (Durable goods)
When inventory-to-sales ratios suddenly increase, the economy is showing signs of:
A. Expansion
B. Stagnation
,C. Contraction
Answer: C (Contraction)
Which of the following conditions have historically been least necessary for hyperinflation?
A. A government not able to meet its spending needs with taxes
B. An economy that has been in distress
C. Increased aggregate demand
Answer: C (Increased aggregate demand)
The unemployment rate is typically at its lowest during which phase of the business cycle?
A. Peak
B. Late expansion
C. Recovery
Answer: A (Peak)
Fill in the blanks as most appropriate.
The Laspeyres index tends to _____ inflation.
A. overstate
B. understate
C. accurately state
,Answer: A (overstate)
During a recession fueled by a leftward shift in the AD curve, employment tends to:
A. Increase
B. Decrease
C. Remain constant
Answer: B (Decrease)
Stagflation is a combination of:
A. High inflation rate and high unemployment
B. Low inflation rate and low unemployment
C. High inflation rate and low unemployment
D. Low inflation rate and high unemployment
Answer: A (High inflation rate and high unemployment)
If the AD curve increases and the AS curve decreases, the most likely eSect on prices is:
A. An increase
B. A decrease
C. No impact
D. Not enough information
Answer: A (An increase)
, If both the AD and AS curves shift to the right, the most likely impact on prices is:
A. An increase
B. A decrease
C. No impact
D. Unknown
Answer: D (Unknown)
Which of the following are taken out of national income to arrive at personal income?
A. Rent
B. Changes in inventories
C. Corporate income taxes
Answer: C (Corporate income taxes)
Fill in the blanks as most appropriate.
When inflation has consistently been negative, real GDP is ____ nominal GDP.
A. equal to
B. greater than
C. less than
Answer: B (greater than)
Answers Pro
Which of the following transactions would most likely be included in a gross domestic
product (GDP) output calculation:
A. A stay at home mother caring for her children
B. A gallon of tap water consumed
C. Raw materials sold to a steel mill
Answer: B (A gallon of tap water consumed)
Which of the following types of purchases most significantly can be tracked to the overall
economic cycle?
A. Durable goods
B. Nondurable goods
C. Services
Answer: A (Durable goods)
When inventory-to-sales ratios suddenly increase, the economy is showing signs of:
A. Expansion
B. Stagnation
,C. Contraction
Answer: C (Contraction)
Which of the following conditions have historically been least necessary for hyperinflation?
A. A government not able to meet its spending needs with taxes
B. An economy that has been in distress
C. Increased aggregate demand
Answer: C (Increased aggregate demand)
The unemployment rate is typically at its lowest during which phase of the business cycle?
A. Peak
B. Late expansion
C. Recovery
Answer: A (Peak)
Fill in the blanks as most appropriate.
The Laspeyres index tends to _____ inflation.
A. overstate
B. understate
C. accurately state
,Answer: A (overstate)
During a recession fueled by a leftward shift in the AD curve, employment tends to:
A. Increase
B. Decrease
C. Remain constant
Answer: B (Decrease)
Stagflation is a combination of:
A. High inflation rate and high unemployment
B. Low inflation rate and low unemployment
C. High inflation rate and low unemployment
D. Low inflation rate and high unemployment
Answer: A (High inflation rate and high unemployment)
If the AD curve increases and the AS curve decreases, the most likely eSect on prices is:
A. An increase
B. A decrease
C. No impact
D. Not enough information
Answer: A (An increase)
, If both the AD and AS curves shift to the right, the most likely impact on prices is:
A. An increase
B. A decrease
C. No impact
D. Unknown
Answer: D (Unknown)
Which of the following are taken out of national income to arrive at personal income?
A. Rent
B. Changes in inventories
C. Corporate income taxes
Answer: C (Corporate income taxes)
Fill in the blanks as most appropriate.
When inflation has consistently been negative, real GDP is ____ nominal GDP.
A. equal to
B. greater than
C. less than
Answer: B (greater than)
