AP Macroeconomics MCQ Question with Answer

AP Macroeconomics MCQ with detailed explanation for interview, entrance and competitive exams. Explanation are given for understanding.

Question No : 22
The term marginal propensity to consume (MPC) is defined as:

The change in consumption resulting from a change in disposable income

The total amount of consumption in an economy

The change in investment resulting from a change in interest rates

The change in saving resulting from a change in disposable income

Question No : 23
If the government implements expansionary fiscal policy, it will likely lead to:

Higher inflation and higher economic growth

Lower inflation and lower economic growth

Higher inflation and lower economic growth

Lower inflation and higher economic growth

Question No : 24
If the government implements a policy of increasing the money supply to stimulate economic activity, it is employing:

Expansionary monetary policy

Contractionary monetary policy

Expansionary fiscal policy

Contractionary fiscal policy

Question No : 25
Which of the following is considered a leading economic indicator?

Consumer Price Index (CPI)

Gross Domestic Product (GDP)

Stock Market Index

Unemployment Rate

Question No : 26
Which of the following is a tool of monetary policy used by the Federal Reserve?

Open market operations

Government spending

Taxation

Fiscal stimulus

Question No : 27
The term supply-side economics focuses on:

Policies that aim to increase the productive capacity of the economy

Policies that aim to increase aggregate demand in the economy

Policies that aim to control inflation through monetary policy

Policies that aim to control inflation through fiscal policy

Question No : 28
Which of the following is a measure of the overall level of prices in an economy?

Consumer Price Index (CPI)

Gross Domestic Product (GDP)

Money Supply (M2)

Aggregate Demand (AD)