Top 50+ Solved Macroeconomics Theories and Policies 1 MCQ Questions Answer
Q. Which one of the following will cause a movement up along an economy's saving schedule?
a. an increase in interest rates.
b. an increase in household borrowing.
c. an increase in disposable income.
d. an increase in stock prices.
Q. A tax increase shifts the IS curve to the
a. left, causing output and interest rates to fall.
b. left, causing output and interest rates to increase.
c. right, causing output and interest rates to fall.
d. right, causing output and interest rates to rise.
Q. Factors that cause the IS curve to shift include
a. changes in autonomous consumer spending.
b. changes in government spending.
c. changes in investment spending related to a change in the interest rate.
d. only (a) and (b) of the above.
Q. In the long-run ISLM model, the long-run effect of a cut in government spending is to
a. increase real output and the interest rate.
b. increase real output and not affect the interest rate.
c. not affect real output and increase the interest rate.
d. not affect real output and reduce the interest rate.
Q. In the long-run ISLM model, the long-run effect of a tax cut is to
a. increase real output and the interest rate.
b. increase real output and not affect the interest rate.
c. not affect real output and increase the interest rate.
d. not affect real output and reduce the interest rate.
Q. In the long-run ISLM model, the long-run effect of an autonomous increase in investment is to
a. increase real output and the interest rate.
b. increase real output and not affect the interest rate.
c. not affect real output and increase the interest rate.
d. not affect real output and reduce the interest rate.
Q. In the long-run ISLM model, the long-run effect of a fall in net exports is to
a. increase real output and the interest rate.
b. increase real output and not affect the interest rate.
c. not affect real output and increase the interest rate.
d. not affect real output and reduce the interest rate.
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