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.
51. The two cornerstones of classical economics are
A. The Phillips Curve and Say’s Law
B. Say’s Law and the Quantity Theory of Money
C. The Quantity Theory of Money and the Liquidity Preference Theory
D. Say’s Law and the Liquidity Preference Theory
Answer:b
52. In the classical view, the price level is determined by
A. aggregate supply
B. aggregate demand and supply
C. supply of money
D. aggregate demand
Answer:c
53. Assume a consumption function of the following form: C = 50 + .8Y. If income is equal to $1,000, then consumption is
A. $50
B. $1,050
C. $1,000
D. $850
Answer:d
54. During period of recession
A. aggregate output declines
B. price level starts rising
C. unemployment declines
D. aggregate output rises
Answer:a
55. Keynesian economics came to be widely accepted because it finds solution to
A. Stagflation of 1970s
B. Recession in 2008
C. Low growth rates in 1950s
D. Great depression of 1930s
Answer:
56. Macroeconomics is a study of economics that deals with which 4 major factors:
A. households, firms, government, and demand-supply
B. households, firms, government and external sector
C. profits, price level, cost and expenditure
D. none of the above
Answer:d
57. Average number of times a unit of money changes from one hand to another is called
A. price level
B. Money supply
C. Value of money
D. Velocity of circulation
Answer:d
58. Who is considered as the father of modern macroeconomics?
A.Ragner Frisch
B. Adam smith
C. J M Keynes
D. Milton Friedman
Answer:c
59. Under Keynesian theory of income determination, investment
A. Depends on income
B. Endogenous
C. Exogenous
D. Depends on money supply
Answer:c
60. In a three sector economy, Y equals
A. C+I
B. C+I+G
C. C+I+G=(X-M)
D.None of these
Answer:b
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