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.
72. The multiplier concept is important in the Keynesian model because
A) it explains why a large change in autonomous spending has such a small impact on equilibrium output.
B) it explains why a small change in autonomous spending can have a large impact on equilibrium output.
C) it is crucial to understanding why changes in investment spending are viewed as the root cause of business
cycles fluctuations.
D) both (b) and (c) of the above.
Answer:d
73. Under Keynesian model aggregate expenditure is measures along
A. Vertical axis
B. Horizontal axis
C. Vertical intercept
D. 450
line
Answer:a
74. Which of the following is an example of capital expenditure
A. spending on laptops by consumers
B. spending on power-looms by business firms
C. spending on infrastructure by Government
D. Both B&C
Answer:d
75. Under Simple Keynesian model the aggregate price level
A. Vary for a short period
B. Fixed in long run
C. Fixed
D. None of the above
Answer:c
76)The well known work formulated by j.m. Keynes:
A general theory of employment interests and money
B principles of economics
C Principles of Modern Trade
D Modern Theory of Fiscal Policy
Answer:a
77)Transaction demand for money is a function of:
A income
B interest
C prince
C inflation
Answer:a
78) The value of MPC in Keynesian model is:
A greater than zero and less than one
B MPC=1
C MPC greater than one
D None of the above
Answer:a
79) According to Keynesian multiplayer model the value of MPC is 0.75 what would be the value of multiplayer
A 4.0
B 1.33
C 2.00
D None of the above
Answer:a
80) According to two sector Keynesian model the aggregate demand is
A summation of consumption expenditure and investment expenditKeyne
B consumption expenditure only
C investment expenditure only
D None of texpenditu
Answer:a
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