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.
61. Under equation C= a+by, b=0.8, what is the value of expenditure multiplier
A. 4
B. 2
C. 5
D. 1
Answer:c
62. In equation C= a+by, a indicates
A. consumption at zero level of income
B. Average propensity to consume
C. MPC
D. None of the above
Answer:a
63. Under Keynesian framework income is measured along
A. 450 line
B. Vertical line
C. Horizontal line
D. None of the above
Answer:c
64. Factor income of household sector is equal to
A. Factor payments by firms
B. Factor income of firms
C. Expenditure of households
D. Income of households
Answer:a
65. Those goods which are meant for final use of consumption are known as
A. Consumer goods
B. Value added goods
C. Intermediate goods
D. All the above
Answer:a
66. A laptop purchased by consumer is an example of
A. An intermediate good
B. A consumer good
C. Intermediate consumption
D. None of the above
Answer:b
67. The policy relates to the taxation, expenditure and borrowing of the government is known as
A. Monetary policy
B. Fiscal policy
C. Taxation policy
D. None of the above
Answer:b
68. Which is the most liquid measure of money supply
A. M1
B. M2
C. M3
D. M4
Answer:a
69. If aggregate demand falls short of current output, it would result in
A. business firms will cut production to keep from accumulating inventories.
B. business firms will expand production to keep from accumulating inventories.
C. business firms will cut production to build up inventories.
D. business firms will expand production to build up inventories.
Answer:a
70. The expenditure multiplier is the ratio of
A) the change in equilibrium output to a change in the monetary base.
B) the change in the money supply to a change in the monetary base.
C) the change in the money supply to a change in the autonomous expenditure.
D) the change in equilibrium output to a change in the autonomous expenditure.
Answer:d
71. In the Keynesian model of income determination, consumer expenditure includes spending by
A) consumers on personal computers.
B) businesses on personal computers.
C) governments on personal computers.
D) all of the above since computers are consumer durables.
Answer:a
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