### Macroeconomics Practice Test - 1: Introduction to Macroeconomic Analysis

##### Click on the correct option. Text colour will change into green if your chosen option is corret and if it is wrong, it will change into red:
1. Macroeconomics is concerned with

1. The level of output of goods and services

2. The general level of prices

3. The growth of real output

4. All the above

2. Real GDP increases

1. When there is an increase in the price level

2. When there is an increase in the output of goods and services

3. When there is an increase in the population

4. At a constant rate over time

3. The equation C = $20 + 0.90 Yd predicts that consumption is 1.$90 when disposable income is $100 2.$100 when disposanle income is $90 3.$110 when disposable income is $100 4.$180 when disposable income is \$200

4. In the equation $$C = \overline C + cYd,$$ the behavioral coefficient is

1. $$\overline C$$

2. $$Yd$$

3. $$c$$

4. all the above

5. In the equatio $$C = \overline C + cYD,\,\,\overline C$$

1. A parameter helping to determine the level of consumption

2. A parameter whose value depends upon the level of disposable income

3. A behavioral coefficient

4. A dependent variable

6. Cetris paribus means that

1. Other factors are held constant

2. No other variable affects the dependent variable

3. No other model can explain the dependent variable

4. The model is logical

7. Which of the following statements is correct?

1. A variable is endogeneous when its value id determined by forces outside the model

2. A change in an exogeneous variable is classified as an autonomous change

3. A variable is exogenous when its value is determined by forces within the model

4. A variable is autonomous when its value is determined by forces within the model

8. In stating chat C = f (Yd, W)

1. It is hypothesized that Yd is a more important determinant of C than W

2. It is hypothesized that W is a more important determinant of C than Yd W and Yd

3. W and Yd are dependent variables explaining C

4. Yd and W are independent variables explaining C

9. In a market-clearing model

1. The price level always exists at the intersection of aggregate supply and aggregate demand

2. Output is determined by the intersection of aggregate supply and aggregate demand

3. Shifts of aggregate demand or aggregate supply immediately change price and/or output

4. All of the above

10. In a disequilibrium model where the price level remains above the price level at which aggregate supply and aggregate demand intersect

1. Output is determined by the aggregate supply curve

2. Output is determined by the aggregate demand curve

3. There is an output shortage

4. There is an output surplus