Top 80+ Solved Macro Economics 2 MCQ Questions Answer
Q. During depression _ industry suffer from excess production capacity.
a. capital goods
b. consumer durable goods
c. non-durable goods
d. both ‘a’ and ‘b’
Q. The term business cycle refers to –
a. fluctuations in aggregate economic activity over time.
b. ups and down in the production of goods
c. increasing unemployment
d. declining savings
Q. Expansion phase all but one of the following characteristics.
a. increase in national output
b. increase in consumer spending
c. excess production capacity of industries
d. expansion of bank credit
Q. Which one of the following is not the characteristic of business cycle?
a. they are recurrent
b. they are not at regular intervals
c. they have uniform causes
d. all the above
Q. The turning points of the business cycle are
a. expansion and peak
b. peak and contraction
c. contraction and trough
d. peak and trough
Q. refers to the top or the highest point of business cycle.
a. expansion
b. peak
c. expansion and peak
d. none of the above
Q. Involuntary unemployment is almost zero in the phase of business cycle.
a. expansion
b. contraction
c. trough
d. depression
Q. The economy is said to be overheated at the _ phase of business cycle.
a. expansion
b. peak
c. contraction
d. depression
Q. Cost of living increases when business cycle is
a. expanding
b. contracting
c. at peak
d. at lowest point
Q. There is large scale of involuntary unemployment in the phase of business cycle.
a. expansion
b. peak
c. contraction
d. none of the above
Q. Fall in the level of investments, fall in production, fall in employment, fall stock prices, etc.are found during phase of business cycle.
a. expansion
b. boom
c. peak
d. contraction
Q. All but one are the endogenous factors of business cycle
a. war
b. changes in government spending
c. money supply
d. fluctuations in investments
Q. When prices are falling continuously, the phenomenon is called:
a. inflation
b. stagflation
c. deflation
d. reflation
Q. When too much money chases too few goods, the resulting Inflation is called:
a. deflation
b. demand-pull inflation
c. cost push inflation
d. stagflation
Q. Cause of Inflation in India is / are:
a. deficit financing
b. erratic agriculture growth
c. inadequate rise in industrial production
d. all of the above