Let’s take a look at one of the most popular quizzes, the inflation calculator. You’ll find that you can modify this to include almost every form of economic activity you can think of. A few of the questions you might be asked include: How much has my gross domestic product (GDP) increased over the past five years? What is the level of employment around the world? How do inflation and trade gaps affect your purchasing power?
When you modify the questions to make them more challenging, you quickly see the effect on your answers. The higher the level of inflation, the less value you place on the dollar. Trade deficits cause prices to rise, while increasing government debt causes prices to fall. Your income taxes, home ownership grants, and federal student loans all have an effect on your macroeconomic outlook, so you’ll see a corresponding decrease in your answers.
Once you’ve modified the questions to reflect the variety of factors affecting the macroeconomics, how do you gauge their importance to your personal situation? If your answers aren’t based entirely on economics, you’re likely making some errors. For instance, did you know that credit cards and loans are important in your life? If you use them wisely, they can be a powerful tool for wealth creation. But if you abuse them, they are disastrous.
How do you know which questions are most relevant to you? Question types range from household spending habits to individual habits. Some questions may seem self-explanatory, but it helps to understand their definition and how they’re presented. These examples include:
So what does this all mean for you? Even though I’ve shown you the basics, don’t assume that this answers your questions. There is always more to learn about macroeconomics, including a history of the concept, the current state of the global economy, macroeconomic indicators, international comparisons, the business cycle, interest rates, and the role of government. You’ll probably never understand everything, but you’ll gain an appreciation for how important your own actions are.
Want to take this quiz again? You’ll have to fill out an application. Don’t worry, it’s free. Just go to your local university and ask an assistant to send you an application, then you can complete it and send it back online.
In conclusion, when you want to get into a deeper understanding of how macroeconomics affects your daily life, you should study real world examples rather than popular misconceptions. A simple example like the Great Depression demonstrates why you should think about how your actions, as individuals and corporations, affect the macroeconomics. If you’re not sure whether or not you understand the concepts presented here, you should review previous lessons. After that, take my advanced macroeconomics quiz and find out.