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Macroeconomics Test Questions 2
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Macroeconomics Test Questions 2
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25 Questions

1. Value of MPC is
2. The slope of the consumption function is called
3. When there is an increase in the autonomous money supply, ceteris paribus, LM shifts:
4. Market does not clear is a proposition of:
5. When MPS = 0.2, MPC will be
6. In classical system which of the following keeps the economy at full employment:
7. Imputed value of good is added to the GDP because:
8. The simplest ISLM model consists of:
9. Economic efficiency for the entire economy requires that :
10. According to Keynes, rising aggregate income is always associated with
11. Milton Friedman restated the :
12. Psychological law of consumption states that the value of MPC is lies between zero and
13. The LM curve has a ----- slope
14. In the equation C = 60 + 0.6 Y, MPC is
15. LM curve shows the equilibrium condition in ---------- market
16. Value added at each stage of production means:
17. Theories are:
18. Three methods of computing the national income are:
19. Which of the following is correct?
20. In classical theory of employment, there is the possibility of:
21. Who first introduced the concept of circular flow of income?
22. Keynesian three sector model consist of:
23. Net investment is
24. The cash balance equation M = KPO was given by:
25. In which of the following situations will an increase in the money supply have no effect upon output?

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