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AP Macroeconomics MCQ Question with Answer

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

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Question No : 29
The term capital gains tax is a tax on:

Profits earned from selling an asset, like a stock or real estate, at a higher price than it was purchased
Profits earned from producing and selling goods and services
Wages earned from labor
Interest earned from savings accounts
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Question No : 30
The term stagflation refers to a situation where:

There is high inflation and high unemployment simultaneously
There is low inflation and low unemployment simultaneously
There is high inflation and low unemployment simultaneously
There is low inflation and high unemployment simultaneously
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Question No : 31
The term cost-push inflation is caused by:

An increase in production costs that leads to higher prices
An increase in consumer demand for goods and services
An increase in government spending on infrastructure projects
An increase in the money supply by the central bank
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Question No : 32
The term tax incidence refers to:

The way in which the burden of a tax is shared between buyers and sellers in a market
The total amount of revenue collected by the government from taxes
The impact of a tax on the overall level of prices in an economy
The distribution of income among different households in an economy
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Question No : 33
Which of the following is a measure of the total value of all final goods and services produced within a country in a given period of time?

Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Money Supply (M2)
Aggregate Demand (AD)
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Question No : 34
Which of the following is an example of a regressive tax?

Sales tax
Progressive income tax
Property tax
Corporate income tax
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Question No : 35
The term structural unemployment refers to unemployment that occurs due to:

Mismatch between the skills of workers and the skills required by employers
Fluctuations in the business cycle
Temporary transitions between jobs
Changes in aggregate demand
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