Top 150+ Solved Macro Economics 1 MCQ Questions Answer
Q. In classical system which of the following keeps the economy at full employment:
a. level of saving
b. increase in money supply
c. adjustment in investment
d. adjustment in money wages
Q. According to classical economists, variationsin savings are due to:
a. level of investment
b. rate ofinterest
c. level of employment
d. none of the above
Q. In classical theory which of the following is found in the economy:
a. unemployment
b. involuntary unemployment
c. less than full employment
d. full employment
Q. The quantity theory of money was restated by:
a. alfred marshall
b. milton friedman
c. irving fisher
d. j.m. .keynes
Q. The law which states that supply creates its own demand and overproduction isimpossible is known as:
a. the law of supply
b. say’s law of market
c. law of demand
d. law of macro economics
Q. Wages and prices do not adjust quickly to restore general equilibrium is a property of
a. classical economics
b. keynesian economics
c. monetary economics
d. supply side economics
Q. When there is an increase in the autonomous money supply, ceteris paribus, LM shifts:
a. leftward
b. rightward
c. no shift
d. none
Q. An Economic model is a statement of relationship among economic ------
a. variables
b. phenomena
c. development
d. none of these
Q. LM curve shows the equilibrium condition in ---------- market
a. goods market
b. product market
c. money market
d. none of these
Q. Supply creates its own demand is the Basis of:
a. classical economics
b. keynesian economics
c. monetarism
d. none of these
Q. The simplest ISLM model consists of:
a. two markets
b. three markets
c. four markets
d. five markets