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Macroeconomics Test Questions 2
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Macroeconomics Test Questions 2
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25 Questions

1. The equilibrium in the product market is represented by which curve?
2. Changes in the subjective or objective factors
3. Keynes considered subjective and objective factors:
4. Schedule that expresses relationship between rate of interest and corresponding amount of investment
5. Frictional unemployment exists:
6. Market does not clear is a proposition of:
7. Milton Friedman restated the :
8. Which policy is effective in the Classical range?
9. ISLM model was developed by:
10. Which of the following is not an obstacle to full employment in classical theory?
11. When MPS = 0.2, MPC will be
12. In the saving function S = -a + (1-b)Y, the term ‘b’ denotes
13. The Cambridge version of the quantity theory of money was developed by:
14. _________ introduced the concept of welfare in the study of economics:
15. The quantity theory of money was restated by:
16. Keynes assumed the presence of --------- economy for the fundamental law of consumption
17. Scientific attempts to describe economic relationships are :
18. Adam Smith, the father of modern economic theory, defined economics as a subject, which is mainly concerned with the study of nature and causes of generation of ______
19. The IS curve has a ------slope
20. Simultaneous equilibrium in the money (LM) and goods (IS) market exists:
21. As the value of MPC increases, the value of multiplier:
22. The ________ method consists in deriving conclusions from general truths, takes few general principles and applies them draw conclusions.
23. LM curve shows the equilibrium condition in ---------- market
24. The aggregate production function implied under classical theory is :
25. Who postulated the law Supply creates its own demand

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