Top 80+ Solved Macro Economics 2 MCQ Questions Answer
Q. The ratio of money supply to high powered money is:
a. slr
b. crr
c. money multiplier
d. bank rate
Q. Fiscal Policy is a policy of the
a. central bank
b. government
c. finance commission
d. finance minister
Q. The objective of Monetary Policy is :
a. to print notes of desired denominations
b. to control cost and supply of money
c. to provide loan to government
d. none of these
Q. Fiscal Policy refers to policy towards:
a. public revenue
b. public expenditure
c. public debt
d. all of the above
Q. In a closed economy which of the following is not a macroeconomic objective?
a. national income growth
b. price level stability
c. bop stability
d. employment
Q. The percentage of deposits of commercial banks statutorily kept with the RBI is :
a. cash reserve ratio
b. statutory liquidity ratio
c. repo rate
d. none of these
Q. Peak is the --- turning point of the business cycle.
a. upper turning point
b. lower turning point
c. middle turning point
d. none of these
Q. The trough of a business cycle occurs when hits its lowest point.
a. inflation
b. the money supply
c. aggregate economic activity
d. the unemployment rate
Q. The lowest point in the business cycle is referred to as the:
a. expansion.
b. boom.
c. trough.
d. peak.
Q. When aggregate economic activity is increasing, the economy is said to be in:
a. an expansion.
b. a contraction.
c. a peak.
d. a turning point.
Q. When aggregate economic activity is declining, the economy is said to be in:
a. a contraction.
b. an expansion.
c. a trough.
d. a turning point.
Q. What are the two main components of business cycle theories?
a. a description of shocks and a model of how the economy responds to them
b. a model of how people decide to spend and a description of the government’s role in the economy
c. a model of how equilibrium is reached and a description of the government’s role in the economy
d. a description of shocks and a description of the government’s role in the economy
Q. Economists use the term shocks to mean:
a. unexpected government actions that affect the economy
b. typically unpredictable forces that have major impacts on the economy
c. sudden rises in oil prices
d. the business cycle.