Top 50+ Solved Int. Macro Economics MCQ Questions Answer

From 1 to 15 of 30

Q. An economy is at equilibrium output when

a. Y = C + I + G+ NX

b. Y = AD + C + G + NX

c. Y = AD + C + I + G + NX

d. Y = AD + C+ I + G

  • c. Y = AD + C + I + G + NX

Q. CENTRAL BANK use contractionary monetary policy

a. to increase govt expenditure

b. to reduce inflation

c. all of the above

d. none of the above

  • b. to reduce inflation

Q. Which one of the following is the objective of fiscal policy?

a. achieve full employment.

b. stabilize the price level.

c. maintain equilibrium in the Balance of Payments.

d. all of the above

  • d. all of the above

Q. Contractionary Fiscal Policy includes:

a. slow economic growth

b. stamp out inflation

c. all of the above

d. none of the above

  • c. all of the above

Q. under fisher's quantity theory of money,M denoted

a. medium

b. the total quantity of legal tender money

c. measurement tool

d. money

  • b. the total quantity of legal tender money

Q. who is the head of the MONETARY POLICY committee?

a. RBI, governor

b. RBI, deputy governor

c. Prime Minister

d. President

  • a. RBI, governor

Q. The phenomenon of sticky wages usually leadsto unemployment during a recession.

a. higher

b. lower

c. stabalize

d. none of the above

  • a. higher

Q. The quantity theory of money is expressed by the identity equation:

a. M*Y=P+Y

b. M*V=P*Y

c. M+V=P

d. none of the above

  • b. M*V=P*Y

Q. In the quantity theory of money, P and Y represent the price and quantity of:

a. all finished goods and services in an economy.

b. all finished goods sold in an economy.

c. all finished goods and services sold in an economy.

d. none of the above

  • c. all finished goods and services sold in an economy.

Q. Which of the following is not a component of Aggregate Demand?

a. Saving

b. Investment

c. Consumption

d. Net Exports

  • a. Saving

Q. An example of a government expenditure is

a. a social security payment to an elderly person.

b. employing a public school teacher.

c. an unemployment insurance check.

d. All of the above

  • b. employing a public school teacher.

Q. Which of the following items is an investment?

a. purchase of a mutual fund.

b. purchase of a U.S. government bond.

c. purchase of a new farm tractor.

d. purchase of a stock.

  • c. purchase of a new farm tractor.

Q. Which factor would shift the Aggregate Demand curve to the right?

a. a fall in interest rates which increases investment

b. an increase in real incomes due to a rise in GDP.

c. an increase in real wages.

d. an appreciation of the dollar.

  • a. a fall in interest rates which increases investment
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