Links Between Macroeconomic Problems and Their Interrelatedness Quiz by Shubhrata Shrestha | Jul 7, 2025 | 0 comments Links Between Macroeconomic Problems and Their Interrelatedness Quiz 1. What happens when inflation reduces the external value of money? A. Exports become cheaper B. Imports become cheaper C. Currency appreciates D. Currency depreciates None 2. Which factor most directly causes a rise in import spending during periods of high growth? A. Lower wages B. Reduced domestic output C. Higher consumer income D. Trade restrictions None 3. The internal value of money is best described as: A. Its use in foreign investment B. Domestic purchasing power C. Its exchange rate D. Quantity of gold it represents None 4. A major cause of inflation due to growth in aggregate demand is called: A. Structural inflation B. Cost-push inflation C. Demand-pull inflation D. Monetary deflation None 5. What does the expectations-augmented Phillips Curve explain? A. Unemployment is always zero B. Inflation and unemployment are unrelated C. Inflation expectations shift the curve D. Inflation permanently lowers unemployment None 6. An increase in inflation usually leads to which of the following effects on exports? A. More competitive pricing B. Increased export volume C. Decreased competitiveness D. Strengthened currency None 7. In the long-run Phillips Curve, what happens if the government tries to reduce unemployment below the natural rate? A. Unemployment decreases permanently B. Inflation falls C. Inflation accelerates D. Output remains unchanged None 8. Export-led growth often improves a nation’s: A. Fiscal deficit B. Balance of payments C. Interest rates D. Money supply None 9. Which of the following best describes the Phillips Curve in the short run? A. Vertical line B. Upward sloping C. Downward sloping D. Horizontal line None 10. Inflation that results from rising wages and raw material costs is called: A. Cost-push inflation B. Deflation C. Stagflation D. Demand-pull inflation None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
