Question:

The financial crisis of 2007-08 originated in the following country.

A.

us

B.

uk

C.

russia

D.

india

Answer» a. us

Question:

Which one of the following is not the characteristic of business cycle?

A.

they are recurrent

B.

they are not at regular intervals

C.

they have uniform causes

D.

all the above

Answer» c. they have uniform causes

Question:

The position of IS curve depends on—

A.

rate of interest,

B.

rate of investment,

C.

autonomous expenditure

D.

none of the above

Answer» c. autonomous expenditure

Question:

The economist who proposed that, “Inflation is always and everywhere a monetary phenomenon” was

A.

john maynard keynes.

B.

john r. hicks.

C.

milton friedman.

D.

franco modigliani.

Answer» c. milton friedman.

Question:

An unrealistically low unemployment target will most likely result in

A.

inflation.

B.

an unemployment rate falling below the natural rate.

C.

excessive monetary growth.

D.

all of the above.

Answer» d. all of the above.

Question:

The goods market is otherwise referred to as:

A.

money

B.

financial

C.

both

D.

real sector

Answer» d. real sector

Question:

All but one are the endogenous factors of business cycle

A.

war

B.

changes in government spending

C.

money supply

D.

fluctuations in investments

Answer» a. war

Question:

LM curve slopes—

A.

downward to the right

B.

upward to the right

C.

vertical

D.

horizontal.

Answer» b. upward to the right

Question:

There is large scale of involuntary unemployment in the phase of business cycle.

A.

expansion

B.

peak

C.

contraction

D.

none of the above

Answer» c. contraction

Question:

The main type of un employment referred by the Post-Keynesians:

A.

voluntary

B.

involuntary

C.

natural rate

D.

none

Answer» c. natural rate