Top 80+ Solved Macroeconomics, Theories and Policies 2 MCQ Questions Answer
Q. Ratex hypothesis is related to
a. new classical economics
b. supply side economics
c. new keynesian economics
d. none of these
Q. Inflation can be contained by
a. surplus budget
b. increase in taxation
c. reduction in public expenditure
d. all these three measures
Q. Gregory Mankiw belongs to
a. new keynesian economics
b. new classical economics
c. supply side economics
d. none of these
Q. According to Hawtrey, the business cycle is caused by
a. variation in the interest of banking system
b. variation in the price level of the economy
c. variation in the money supply by bank
d. all the above
Q. Which of the following are main postulates of Supply side Economics
a. cut in tax rate
b. increasing public expenditure
c. both a and b
d. none of these
Q. Which of the following economist is not related to New Classical Economics
a. artherlaffer
b. thomas surgent
c. robert lucas
d. neil walace
Q. According to New Classical Economist, Business cycle is due to
a. anticipated policy change
b. unanticipated policy change
c. both a and b
d. none of these
Q. The curve which explains relationship between tax rate and tax revenue is called
a. laffer curve
b. kuznets curve
c. lorenz curve
d. none of these
Q. According to New classical Economics
a. anticipated policy change will not affect output
b. unanticipated policy change will affect output
c. both a and b
d. none of these
Q. According to New Classical Economics Philips curve is
a. always vertical
b. always horizontal
c. always downward slopping
d. downward slopping in short run and vertical in the long run
Q. Liquidity trap is a situation when,
a. all potential investors expect the rate of interest to rise in future
b. all potential investors expect the rate of interest to fall in future
c. natural rate of interest is above the critical rate of interest
d. demand for money for speculative purpose is interest inelastic
Q. The classical economists focussed on the role of money as
a. medium of exchange
b. medium of distribution
c. wealth
d. link between present and future
Q. According to Milton Friedman Theory of permanent component of consumption-expendituredepends on i. Transitory income alone ii. Transitory and permanent income iii. Permanent income alone iv. Windfall gains Codes :
a. i and ii are correct
b. i and iii are correct
c. ii and iv are correct
d. only iii is correct
Q. The classical model of economic development emphasises
a. laissez-faire policy
b. capital accumulation
c. both (a) and (b)
d. none of these