MCQ: When a country has a trade deficit it ?

1. purchases more stocks and bonds from the rest of the world than it sells
2. purchases more goods from the rest of the world than it sells
3. sells more goods to the rest of the world than it purchases
4. sells more stocks and bonds to the rest of the world than it purchases

MCQ: Macroeconomics is the branch of economics that deals with ?

1. imperfectly competitive markets:
2. Only the long run adjustments to equilibrium in the economy
3. The functioning of individual industries and the behavior of individual decision-making units business firms and households
4. the economy as a whole

MCQ: Macroeconomic theory that emphasized the theories of Keynes and de-emphasized the classical theory developed as the result of the failure of ?

1. economic theory to explain the simultaneous increases in inflation and unemployment during the 1970s
2. The classical model to explain the prolonged existence of high unemployment during the Great Depression
3. fine tuning during the 1960s
4. the economy to grow at a rapid rate during the 1950s

MCQ: An index of prices of all domestically produced goods in the economy is the ?

1. wholesale price index (WPI)
2. Consumer price index (CPI)
3. GDP deflator
4. Producer price index (PPI)

MCQ: The length of a business cycle would be measured from ?

1. the slump to the expansion
2. peak to peak
3. peak to trough
4. trough to peak

MCQ: Aggregate demand includes only ?

1. consumer expenditure government expenditure and investment
2. consumer expenditure investment government expenditure and exports less imports
3. consumer debt investment debt and government debt
4. consumer expenditure and investment