Macro Economics MCQ
Macro Economics MCQ Meaning :- Macroeconomics is the branch of economics that deals with the structure, performance, behavior, and decision-making of the whole, or aggregate, economy. The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles.
41. The concept money illusion is firstly coined out by
A. Irving Fischer
B. Milton Friedman
C. Alfred Marshall
D. J M Keynes
Answer:a
42. Which of the following equation is not true?
A. APC+APS=1
B. 1-APC=APS
C. 1-APS=APC
D. APC-1=APS
Answer:d
43. Under classical theory, rate of interest is determined by
A. Demand for money and supply of money
B. Demand for capital and supply of savings
C. Demand for investment and price level
D. Demand for investment and supply of money
Answer:b
44. This independence of real variables from changes in money supply and nominal variables is called
A. Money illusion
B. Neutrality of money
C. Classical dichotomy
D. Money multiplier
Answer:c
45. The expansion in money supply doesn’t affect the real output and employment in the economy indicates
A. Effectiveness of monetary policy
B. Effectiveness of fiscal policy
C. Neutrality of money
D. Money illusion
Answer:c
46. An increase in output and employment in the economy which arise out of increasing consumption demand and rise in real wealth is called
A. Demonstration effect
B. Keynes effect
C. Income effect
D. Pigou effect
Answer:d
47. Which of the following measures have to be adopted to curb out inflation from the economy?
A. Increase in government expenditure and reduction in taxation
B. Decrease in Government expenditure and increase in taxation
C. Increase in transfer payments and increase in taxation
D. Decrease in transfer payments and decrease in taxation
Answer:b
48. During great depression period unemployment in USA rose by
A. 15%
B. 25%
C. 5%
D. 24%
Answer:b
49. Keyne’s introduced the book General theory of employment, interest and money in the year
A. 1929
B. 1933
C. 1936
D. 1935
Answer:c
50. Which of the following have to be adopted to remove recession from the economy?
A. increase in Government welfare programs and increase in taxation
B. Increase in Government welfare projects and decrease in taxation
C. Increase in Public borrowing and decrease in taxation
D. Decrease in public borrowing and increase in taxation
Answer:b
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