Quiznetik

Macro Economics 2 | Set 1

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

Correct : C. expansionary monetary policies.