Macro Economics 2 Set 1

Bachelor of Arts in Economics (BA Economics)

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This set of Macro Economics 2 Multiple Choice Questions & Answers (MCQs) focuses on Macro Economics 2 Set 1

Q1 | The headline inflation in India is measured in:
  • wpi
  • cpi
  • gdp deflator
  • all
Answer: wpi
Q2 | The working group in India include in the age:
  • 14 to 55
  • 15 to 59
  • 20 and above
  • 25 and above
Answer: 15 to 59
Q3 | The main type of un employment referred by the Classicals:
  • voluntary
  • involuntary
  • both
  • none
Answer: voluntary
Q4 | The main type of un employment referred by the Keynesian:
  • voluntary
  • involuntary
  • both
  • none
Answer: involuntary
Q5 | The main type of un employment referred by the Post-Keynesians:
  • voluntary
  • involuntary
  • natural rate
  • none
Answer: natural rate
Q6 | Main reason for frictional unemployment is :
  • lack of opportunities
  • low wage
  • high cost
  • market imperfection
Answer: market imperfection
Q7 | Okun’s law related with :
  • unemployment and growth rate
  • inflation and growth rate
  • wage lose
  • none
Answer: unemployment and growth rate
Q8 | The term Stagflation is coined by:
  • samuelson
  • iain macleod
  • keynes
  • none
Answer: iain macleod
Q9 | Long run Phillips Curve is :
  • parallel
  • horizontal
  • vertical
  • kinked
Answer: vertical
Q10 | In business cycle, depression is followed by:
  • . boom
  • recovery
  • recession
  • none of the above
Answer: recovery
Q11 | A business cycle has:
  • three phases
  • four phases
  • five phases
  • six phases
Answer: four phases
Q12 | Open market operations refer to the sale and purchase by the RBI of:
  • gold
  • foreign exchange
  • government securities
  • all the above
Answer: government securities
Q13 | Which of the following is not an objective of monetary policy?
  • price stability
  • balance of payments equilibrium
  • economic growth
  • reduction in export
Answer: reduction in export
Q14 | Which of the following is not a quantitative credit control measure?
  • bank rate
  • cash reserve ratio
  • regulation of margin requirement
  • open market operation
Answer: regulation of margin requirement
Q15 | Which of the following is not an element of high Powered money?
  • currency
  • repos
  • required reserves
  • excess reserves
Answer: repos
Q16 | The ratio of money supply to high powered money is:
  • slr
  • crr
  • money multiplier
  • bank rate
Answer: money multiplier
Q17 | Fiscal Policy is a policy of the
  • central bank
  • government
  • finance commission
  • finance minister
Answer: government
Q18 | Fiscal Policy includes:
  • expenditure policy
  • tax policy
  • both a and b
  • neither a nor b.
Answer: both a and b
Q19 | The objective of Monetary Policy is :
  • to print notes of desired denominations
  • to control cost and supply of money
  • to provide loan to government
  • none of these
Answer: to print notes of desired denominations
Q20 | Fiscal Policy refers to policy towards:
  • public revenue
  • public expenditure
  • public debt
  • all of the above
Answer: all of the above
Q21 | In a closed economy which of the following is not a macroeconomic objective?
  • national income growth
  • price level stability
  • bop stability
  • employment
Answer: bop stability
Q22 | A business cycle is composed of ------phases:
  • 2 phase
  • 3 phase
  • 4 phase
  • no phase
Answer: 4 phase
Q23 | The percentage of deposits of commercial banks statutorily kept with the RBI is :
  • cash reserve ratio
  • statutory liquidity ratio
  • repo rate
  • none of these
Answer: cash reserve ratio
Q24 | Peak is the --- turning point of the business cycle.
  • upper turning point
  • lower turning point
  • middle turning point
  • none of these
Answer: upper turning point
Q25 | The trough of a business cycle occurs when hits its lowest point.
  • inflation
  • the money supply
  • aggregate economic activity
  • the unemployment rate
Answer: aggregate economic activity
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