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.
31. In equation C= a+by, the value of b lies between
a. 0<b<1
b. 0>b<1
c. 0=b<1
d. 0>b<1
Answer:a
32. The relation between APC and MPC in Keynes Psychological consumption function is
a. MPC<APC
b. MPC=APC
c. MPC>APC
d. None of the above
Answer:a
33. Under Keyne’s consumption function consumption is a _______ function of income
a. Unstable
b. Inverse
c. Stable
d. Neutral
Answer:c
34. Under Classical theory, demand for labour is the same as
a. MP curve of labor
b. MRP curve of labor
c. MC curve of labor
d. MPP curve of labour
Answer:a
35. The reason for existence of proportional relationship between money stock and price level is
a. Money illusion
b. Inflation
c. Full employment
d. Wage price flexibility
Answer:c
36. Which among the following is not a feature of Keynesian theory?
a. Short run
b. Wage price flexibility
c. Fiscal policy
d. Underemployment equilibrium
Answer:b
37. Money on wings indicates
A. Store value function of money
B. Medium of exchange function of money
C. Measure of value function of money
D. All of the above
Answer:b
38. Cash balance approach in Quantity theory emphasis on
A. Money as a medium of exchange
B. Money as a store of value
C. Money as a measure of value
D. Money as a transfer of value
Answer:b
39. In the classical theory, output and employment are determined by
A. Production function
B. Demand for labor and supply of labour
C. Effective demand
D. Both A & B
Answer:d
40. Under Keynesian theory employment and output is determined by
A. Saving investment equality
B. Production function
C. Effective demand
D. Demand for money and supply of money
Answer:c
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