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This set of Macro Economics 2 Multiple Choice Questions & Answers (MCQs) focuses on Macro Economics 2 Set 3
Q1 | LM curve slopes—
- downward to the right
- upward to the right
- vertical
- horizontal.
Q2 | The great depression was caused by what major event?
- an increase in federal spending
- the stock market crash
- automobile workers going on strike
- president hoover announcing a war
Q3 | Great Depression was between ……and …….
- 1929,1939
- 1930,1950
- 1928,1930
- 1930,1940
Q4 | The financial crisis of 2007-08 originated in the following country.
- us
- uk
- russia
- india
Q5 | During the financial crisis of 2007-08, which financial instruments commonly came to be called “Toxic Assets”?
- treasury bill
- mortgaged backed securities
- s&p stokes
- government bonds
Q6 | The period of economic downturn that ensued after the financial crisis of 2007-08 andaffected many countries world-wide is called:
- the great depression
- the great recession
- black friday
- great collapse
Q7 | Fiscal policy in India is formulated by
- reserve bank of india
- planning commission
- finance ministry
- securities and exchange board of india
Q8 | Economic Survey in India is published by the
- reserve bank of india
- ministry of finance, government of india
- niti aayog
- ministry of industries, government of india
Q9 | Which one of the following is the largest item of expenditure of the Government of India onrevenue account?
- defense
- pensions
- subsidies
- interest payments
Q10 | The lowest level of economic activity is called
- contraction
- trough
- recovery
- none of the above
Q11 | During depression _ industry suffer from excess production capacity.
- capital goods
- consumer durable goods
- non-durable goods
- both ‘a’ and ‘b’
Q12 | The term business cycle refers to –
- fluctuations in aggregate economic activity over time.
- ups and down in the production of goods
- increasing unemployment
- declining savings
Q13 | Expansion phase all but one of the following characteristics.
- increase in national output
- increase in consumer spending
- excess production capacity of industries
- expansion of bank credit
Q14 | Which one of the following is not the characteristic of business cycle?
- they are recurrent
- they are not at regular intervals
- they have uniform causes
- all the above
Q15 | The turning points of the business cycle are
- expansion and peak
- peak and contraction
- contraction and trough
- peak and trough
Q16 | refers to the top or the highest point of business cycle.
- expansion
- peak
- expansion and peak
- none of the above
Q17 | Involuntary unemployment is almost zero in the phase of business cycle.
- expansion
- contraction
- trough
- depression
Q18 | The economy is said to be overheated at the _ phase of business cycle.
- expansion
- peak
- contraction
- depression
Q19 | Cost of living increases when business cycle is
- expanding
- contracting
- at peak
- at lowest point
Q20 | There is large scale of involuntary unemployment in the phase of business cycle.
- expansion
- peak
- contraction
- none of the above
Q21 | Fall in the level of investments, fall in production, fall in employment, fall stock prices, etc.are found during phase of business cycle.
- expansion
- boom
- peak
- contraction
Q22 | All but one are the endogenous factors of business cycle
- war
- changes in government spending
- money supply
- fluctuations in investments
Q23 | When prices are falling continuously, the phenomenon is called:
- inflation
- stagflation
- deflation
- reflation
Q24 | When too much money chases too few goods, the resulting Inflation is called:
- deflation
- demand-pull inflation
- cost push inflation
- stagflation
Q25 | Cause of Inflation in India is / are:
- deficit financing
- erratic agriculture growth
- inadequate rise in industrial production
- all of the above