Question:

Who first introduced the concept of circular flow ofincome?

A.

william petty

B.

adam smith

C.

david ricardo

D.

fancois quesnay

Answer» d. fancois quesnay

Question:

Pigou’s version of Cambridge equation is:

A.

m = kp/y

B.

p= kr/m

C.

mv = pt

D.

mv = mivi

Answer» b. p= kr/m

Question:

In classical theory of employment, there isthe possibility of:

A.

voluntary unemployment

B.

no unemployment

C.

involuntary unemployment

D.

disguised unemployment

Answer» a. voluntary unemployment

Question:

Milton Friedman restated the :

A.

labour theory

B.

profit theory

C.

quantity theory of money

D.

wage theory

Answer» c. quantity theory of money

Question:

Autonomousinvestment is

A.

income inelastic

B.

instable

C.

interest elastic

D.

incomeelastic

Answer» a. income inelastic

Question:

The equilibrium in the product market is represented by which curve?

A.

is

B.

lm

C.

demand

D.

supply curve

Answer» a. is

Question:

In the Keynesian two sector economy, AD<AS, then

A.

s=i

B.

s>i

C.

s<i

D.

s=0

Answer» b. s>i

Question:

In which of the following situations will an increase in the money supply have no effectupon output?

A.

lm is steeply sloped and is is steeply sloped

B.

lm is vertical and is is steeply sloped

C.

lm is steeply sloped and is is vertical

D.

lm is relatively flat as is is

Answer» c. lm is steeply sloped and is is vertical

Question:

Who propounded Psychological law of consumption

A.

adam smith

B.

ricardo

C.

keynes

D.

pigou

Answer» c. keynes

Question:

Keynesian economics is:

A.

macro

B.

micro

C.

both

D.

none

Answer» a. macro