Top 150+ Solved Macro Economics 1 MCQ Questions Answer
Q. When investment is negatively related to the rate of interest, equilibrium output in thegoods market:
a. is unrelated to the rate of interest
b. is inversely related to the rate of interest
c. is positively related to the rate of interest
d. falls as the rate of interest decreases
Q. Simultaneous equilibrium in the money (LM) and goods (IS) market exists:
a. at an unlimited number of output levels and rates of interest
b. at only one output level and rate ofinterest
c. at an unlimited number of output levels and only one rate of interest
d. at only one output level and an unlimited number of rates of interest
Q. In which of the following situations will an increase in the money supply have no effectupon output?
a. lm is steeply sloped and is is steeply sloped
b. lm is vertical and is is steeply sloped
c. lm is steeply sloped and is is vertical
d. lm is relatively flat as is is
Q. Policy Neutrality is the main proposition of:
a. supply side economics.
b. keynesian economics
c. monetarism
d. rational expectations hypothesis
Q. Who invented the General Equilibrium analysis?
a. l. walras.
b. w. leontief
c. j.m.keynes.
d. none of these.
Q. Employment equilibrium in the Classical theory is achievedthrough:
a. wage-price flexibility.
b. changes in aggregate demand
c. changes in aggregate supply
d. none of these.
Q. Market does not clear is a proposition of:
a. neoclassical theory.
b. keynesian economics
c. monetarism
d. rational expectations
Q. The interest rate paid on bonds is known as:
a. call rate
b. coupon rate
c. repo rate
d. bank rate
Q. The monetary policy is completely ineffective when the LM curve is:
a. vertical .
b. horizontal.
c. upward sloping.
d. downward sloping
Q. Monetarism is associated with:
a. keynesian school
b. chicago school
c. cambridge school.
d. neo-classical school.
Q. Changes in the subjective or objective factors
a. never affect consumption function
b. always cause downward shift in consumption function
c. always cause upward shift in consumption function
d. they cause upward or downward shifts in consumption function
Q. Entrepreneurs will have no tendency to expand or contract output and employmentwhen
a. ad>as
b. ad<as
c. ad=as
d. none of the above
Q. The concept of effective demand is associated with the nameof
a. marshall
b. keynes
c. krugman
d. say