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Macroeconomics Test Questions 2
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Macroeconomics Test Questions 2
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25 Questions

1. The normal condition of a capitalist economy in classical theory is:
2. Theories are:
3. Which policy is effective in the Keynesian range?
4. In classical theory which of the following is found in the economy:
5. The sum of marginal propensity to consume plus marginal propensity to save must equal to:
6. APC is determined by the following equation:
7. When MPS = 0.2, MPC will be
8. MEC for a capital good was found out to be 10% and the market rate of interest is 9%, then the investment is
9. In a two sector economy, aggregate demand is equal to
10. The idea that a general cut in wages will finally lead to a state of full employment was suggested by :
11. ISLM model was developed by:
12. A substantial increase in the rate of interest can cause:
13. Simultaneous equilibrium in the money (LM) and goods (IS) market exists:
14. Who postulated the law Supply creates its own demand
15. As a result of an increase in capital, ceteris paribus, ------ the marginal productivity of labour:
16. The value of ‘intermediate goods’ are excluded from GDP calculation because:
17. In the saving function S = -a + (1-b)Y, the term ‘b’ denotes
18. The slope of the consumption function is called
19. In MV=PT, if M doubles and V and T remain constant, then P will:
20. Scientific attempts to describe economic relationships are :
21. Who among the following pioneered the first real estimate of national income?
22. In the classical theory, one of the following is an important assumption:
23. Keynes assumed the presence of --------- economy for the fundamental law of consumption
24. Inductive method which also called empirical method was adopted by the:
25. In Fisher’s transaction velocity model, one of the following is not an assumption:

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