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 : 8
The term market equilibrium refers to a situation where:

The quantity supplied is equal to the quantity demanded in a market

The quantity supplied exceeds the quantity demanded in a market

The quantity demanded exceeds the quantity supplied in a market

The price level is constant in a market

Question No : 9
If the nominal interest rate is 5% and the inflation rate is 3%, the real interest rate is:

Question No : 10
The term real wage rate refers to:

The purchasing power of wages after accounting for inflation

The nominal wage rate adjusted for taxes

The average wage rate in an economy

The wage rate set by the government

Question No : 11
The term government budget surplus occurs when:

Government revenues exceed government expenditures in a given period

Government expenditures exceed government revenues in a given period

Government revenues and expenditures are equal in a given period

Taxes are too high

Question No : 12
The term supply-side economics focuses on:

Policies that aim to increase aggregate demand in the economy

Policies that aim to increase the productive capacity of the economy

Policies that aim to control inflation through monetary policy

Policies that aim to control inflation through fiscal policy

Question No : 13
The term capital stock in economics refers to:

The total amount of money in an economy

The total value of physical and human capital in an economy

The total amount of money held by households

The total amount of money held by businesses

Question No : 14
The term complementary input refers to inputs that are:

Used together in the production process

Used interchangeably in the production process

Completely unrelated in the production process

Unrelated to the production process