Question:

“Supply creates its own demand “is a law of:

A.

investment

B.

inflation

C.

consumption

D.

market

Answer» d. market

Question:

MEC isinversely related to:

A.

prospective yield

B.

supply price

C.

investment

D.

rate of interest

Answer» a. prospective yield

Question:

In the equation MV+ MI VI = PT, ‘M ‘denotes:

A.

velocity of money

B.

money in circulation

C.

bank deposit

D.

none of these

Answer» b. money in circulation

Question:

The IS curve has a——slope

A.

positive

B.

negative

C.

zero

D.

none of these

Answer» b. negative

Question:

Keynes assumed thepresence of ——— economy for the fundamental law ofconsumption

A.

capitalistic

B.

socialistic

C.

planned

D.

none of the above

Answer» a. capitalistic

Question:

When there is an increase in the autonomous money supply, ceteris paribus, LM shifts:

A.

leftward

B.

rightward

C.

no shift

D.

none

Answer» b. rightward

Question:

Who among the following pioneered the first real estimate of national income?

A.

adam smith

B.

david ricardo

C.

william petty

D.

none of the above

Answer» c. william petty

Question:

Macroeconomicsis primarily concerned with aggregates. Which of the following is nota macroeconomic aggregate?

A.

decision making by a household

B.

the unemployment rate, and inflation levels

C.

national income

D.

the supply of money

Answer» a. decision making by a household

Question:

The concept of effective demand is associated with the nameof

A.

marshall

B.

keynes

C.

krugman

D.

say

Answer» b. keynes

Question:

When disposable income risesfrom Rs 500 to Rs 600 and consumption expenditurechanges from Rs 470 to Rs 560, MPC will be equalto

A.

900

B.

100

C.

0.9

D.

1

Answer» c. 0.9