Top 150+ Solved Macro Economics 1 MCQ Questions Answer
Q. The equilibrium in the product market is represented by which curve?
a. is
b. lm
c. demand
d. supply curve
Q. The perfectly elastic segment of the LM curve is:
a. keynesian range
b. classical range
c. intermediate range
d. none of these
Q. Which policy is effective in the Classical range?
a. monetary policy
b. fiscal policy
c. incomes policy
d. none of these
Q. Which policy is effective in the Keynesian range?
a. monetary policy
b. fiscal policy
c. incomes policy
d. none of these
Q. Which policy is effective in the intermediate range?
a. monetary policy
b. fiscal policy
c. both policies
d. none of these
Q. Frictional unemployment exists:
a. when there is a decrease in real gdp
b. because it takes time to find a job when one is first entering the labour force
c. as a result of technological change
d. when an individual retires
Q. The natural rate of unemployment equals the sum of those who are:
a. frictionally and structurally unemployed
b. frictionallyandcyclicallyunemployed
c. structurallyandcyclicallyunemployed
d. frictionally structurally and cyclically unemployed
Q. The marginal productivity of labour is:
a. the incremental output due to an increase in capital, ceteris paribus
b. the incremental output due to an increase in labour, ceteris paribus.
c. the incremental output due to a change in technology, ceteris paribus
d. the incremental output due to a change in technology and a change in the
Q. The marginal productivity of labour:
a. increases when the price of the good sold increases, ceteris paribus
b. decreases when there is an adverse supply shock, ceteris paribus
c. increase when more workers are hired, ceteris paribus
d. decreases when there is an increase in the quantity of capital, ceteris paribus
Q. When saving is greater than investment in a two-sectormodel,
a. outputshould increase
b. output should decrease
c. output should not change
d. none of these
Q. When output exceeds spending:
a. there is unsold output, and level of output will fall
b. there is unsold output, and level of output will rise
c. there is unsold output, and level of spending willrise
d. there is no unsold output since the level of spending will rise