Top 80+ Solved Macro Economics 2 MCQ Questions Answer
Q. Wars, new inventions, harvest failures, and changes in government policy are examplesof:
a. the business cycle.
b. economic models.
c. shocks.
d. opportunity costs.
Q. Peaks and troughs of the business cycle are known collectively as:
a. volatility.
b. turning points.
c. equilibrium points.
d. real business cycle events.
Q. IS curve represents the equilibrium of ............. sector.
a. money
b. goods
c. government
d. all
Q. The relationship between income and interest in the IS curve is:
a. direct
b. indirect
c. no relation
d. none
Q. The relationship between income and interest in the LM curve is:
a. direct
b. indirect
c. no relation
d. none
Q. Increase in Government expenditure shift IS curve to:
a. right
b. left
c. no change
d. any of these.
Q. Decrease in money supply shift the LM curve to the:
a. right
b. left
c. no change
d. any of these.
Q. One of the limitations of the ISLM model was:
a. static nature
b. open model
c. price is exogenous
d. all