1. The headline inflation in India is measured in:
Correct : A. wpi
2. The working group in India include in the age:
Correct : B. 15 to 59
3. The main type of un employment referred by the Classicals:
Correct : A. voluntary
4. The main type of un employment referred by the Keynesian:
Correct : B. involuntary
5. The main type of un employment referred by the Post-Keynesians:
Correct : C. natural rate
6. Main reason for frictional unemployment is :
Correct : D. market imperfection
7. Okun’s law related with :
Correct : A. unemployment and growth rate
8. The term Stagflation is coined by:
Correct : B. iain macleod
9. Long run Phillips Curve is :
Correct : C. vertical
10. In business cycle, depression is followed by:
Correct : B. recovery
11. A business cycle has:
Correct : B. four phases
12. Open market operations refer to the sale and purchase by the RBI of:
Correct : C. government securities
13. Which of the following is not an objective of monetary policy?
Correct : D. reduction in export
14. Which of the following is not a quantitative credit control measure?
Correct : C. regulation of margin requirement
15. Which of the following is not an element of high Powered money?
Correct : B. repos
16. The ratio of money supply to high powered money is:
Correct : C. money multiplier
17. Fiscal Policy is a policy of the
Correct : B. government
18. Fiscal Policy includes:
Correct : C. both a and b
19. The objective of Monetary Policy is :
Correct : A. to print notes of desired denominations
20. Fiscal Policy refers to policy towards:
Correct : D. all of the above
21. In a closed economy which of the following is not a macroeconomic objective?
Correct : C. bop stability
22. A business cycle is composed of ------phases:
Correct : C. 4 phase
23. The percentage of deposits of commercial banks statutorily kept with the RBI is :
Correct : A. cash reserve ratio
24. Peak is the --- turning point of the business cycle.
Correct : A. upper turning point
25. The trough of a business cycle occurs when hits its lowest point.
Correct : C. aggregate economic activity
26. The lowest point in the business cycle is referred to as the:
Correct : C. trough.
27. When aggregate economic activity is increasing, the economy is said to be in:
Correct : A. an expansion.
28. When aggregate economic activity is declining, the economy is said to be in:
Correct : A. a contraction.
29. What are the two main components of business cycle theories?
Correct : A. a description of shocks and a model of how the economy responds to them
30. Economists use the term shocks to mean:
Correct : B. typically unpredictable forces that have major impacts on the economy
31. Wars, new inventions, harvest failures, and changes in government policy are examples
of:
Correct : C. shocks.
32. Peaks and troughs of the business cycle are known collectively as:
Correct : B. turning points.
33. ISLM model was basically .............. sector model:
Correct : A. two
34. ISLM model was firstly developed by …………
Correct : B. hicks
35. IS curve represents the equilibrium of ............. sector.
Correct : B. goods
36. Original IS-LM model is a .......... model.
Correct : B. closed
37. ISLM is used to determine:
Correct : C. both
38. The goods market is otherwise referred to as:
Correct : D. real sector
39. The relationship between income and interest in the IS curve is:
Correct : B. indirect
40. The relationship between income and interest in the LM curve is:
Correct : A. direct
41. The tax cut shift the IS curve to the:
Correct : A. right
42. Increase in Government expenditure shift IS curve to:
Correct : A. right
43. Decrease in money supply shift the LM curve to the:
Correct : B. left
44. One of the limitations of the ISLM model was:
Correct : A. static nature
45. Who develop the ISLM open economy model?
Correct : C. both
46. For an open economy model which curve is added IS-LM?
Correct : D. bp.
47. A temporary unemployment which exists during the period of the transfer of labor from
one occupation to another is called
Correct : D. frictional unemployment
48. When more workers are engaged in a work than actually required to work, it is called
Correct : C. disguised unemployment
49. The position of IS curve depends on---
Correct : C. autonomous expenditure
50. The curve which relates the level of income with the rate of interest which is determined by
money- market equilibrium corresponding to different levels of demand for money is known as
Correct : B. lm curve
51. LM curve slopes—
Correct : B. upward to the right
52. The great depression was caused by what major event?
Correct : B. the stock market crash
53. Great Depression was between ……and …….
Correct : D. 1930,1940
54. The financial crisis of 2007-08 originated in the following country.
Correct : A. us
55. During the financial crisis of 2007-08, which financial instruments commonly came to be called “Toxic Assets”?
Correct : B. mortgaged backed securities
56. The period of economic downturn that ensued after the financial crisis of 2007-08 and
affected many countries world-wide is called:
Correct : B. the great recession
57. Fiscal policy in India is formulated by
Correct : C. finance ministry
58. Economic Survey in India is published by the
Correct : C. niti aayog
59. Which one of the following is the largest item of expenditure of the Government of India on
revenue account?
Correct : D. interest payments
60. The lowest level of economic activity is called
Correct : B. trough
61. During depression _ industry suffer from excess production capacity.
Correct : A. capital goods
62. The term business cycle refers to –
Correct : A. fluctuations in aggregate economic activity over time.
63. Expansion phase all but one of the following characteristics.
Correct : C. excess production capacity of industries
64. Which one of the following is not the characteristic of business cycle?
Correct : C. they have uniform causes
65. The turning points of the business cycle are
Correct : D. peak and trough
66. refers to the top or the highest point of business cycle.
Correct : B. peak
67. Involuntary unemployment is almost zero in the phase of business cycle.
Correct : A. expansion
68. The economy is said to be overheated at the _ phase of business cycle.
Correct : B. peak
69. Cost of living increases when business cycle is
Correct : C. at peak
70. There is large scale of involuntary unemployment in the phase of business cycle.
Correct : C. contraction
71. Fall in the level of investments, fall in production, fall in employment, fall stock prices, etc.
are found during phase of business cycle.
Correct : D. contraction
72. All but one are the endogenous factors of business cycle
Correct : A. war
73. When prices are falling continuously, the phenomenon is called:
Correct : C. deflation
74. When too much money chases too few goods, the resulting Inflation is called:
Correct : B. demand-pull inflation
75. Cause of Inflation in India is / are:
Correct : D. all of the above
76. Stagflation means:
Correct : A. inflation with stagnation
77. Which is the most effective quantitative method to control inflation in the economy?
Correct : C. cash reserve ratio
78. Which measures are followed by the government for handling inflation?
Correct : D. all of these
79. Inflation is measured on the basis of:
Correct : B. consumer price index
80. When price increases due to increase in factor prices it is .
Correct : B. cost pull inflation
81. According to the Phillips curve unemployment will return to the natural rate when ?
Correct : A. nominal wages are equal to expected wages
82. Demand pull inflation may be caused by ?
Correct : B. a reduction in interest rate
83. The economist who proposed that, “Inflation is always and everywhere a monetary phenomenon” was
Correct : C. milton friedman.
84. Inflation occurs whenever
Correct : C. the price level rises continuously over a period of time.
85. An unrealistically low unemployment target will most likely result in
Correct : D. all of the above.
86. Governments may pursue inflationary monetary policies
Correct : D. for all the above reasons.
87. Which of the following is least likely to lead to inflationary monetary policy?
Correct : C. declining oil prices
88. Economists from which of the following schools of thought are most likely to favor activist
government policies?
Correct : A. keynesian
89. According to the monetarists, inflation is caused by