Macroeconomics Theories And Policies II Set 1

Master of Arts in Economics (MA Economics)

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This set of Macroeconomics, Theories and Policies 2 Multiple Choice Questions & Answers (MCQs) focuses on Macroeconomics Theories And Policies II Set 1

Q1 | The IS-LM Model was developed by
  • j m keynes
  • patinkin
  • hicks and hansen
  • schumpeter
Answer: hicks and hansen
Q2 | New Classical Economics based on Adaptive ExpectationWhich one of the following is correct among the following options?
  • 1 alone is correct
  • 2 alone is correct
  • 1 and 2 correct
  • neither 1 nor 2 correct
Answer: 1 alone is correct
Q3 | According to Keynes, there is
  • no direct relationship between the quantity of money and price level
  • direct relationship between money and price level
  • no direct relationship between demand for money and supply of money
  • direct relationship between demand for money and supply of money
Answer: no direct relationship between the quantity of money and price level
Q4 | Relationship between changes in the interest rates and bond pricesCodes :
  • i and iii are correct
  • i and iv are correct.
  • ii and iii are correct.
  • iii and iv are correct.
Answer: i and iv are correct.
Q5 | The concepts of inside money and outside money is given by
  • milton friedman
  • j m keynes
  • gurley and shaw
  • none of these
Answer: gurley and shaw
Q6 | Assertion (A): Long-run Philips curve is a vertical line at the NAIRUReason (R): Non-accelerating inflation raise of unemployment, more or less, stands accepted
  • both (a) and (r) are false.
  • both (a) and (r) are true, but (r) is not the correct reason.
  • both (a) and (r) are true, and (r) is the explanation.
  • (a) is true, (r) is false.
Answer: both (a) and (r) are true, and (r) is the explanation.
Q7 | The quantity theory of money first propounded in 1588 by an Italian Economist
  • david hume
  • davanzatti
  • j s mill
  • ricardo
Answer: davanzatti
Q8 | What is the shape of Long Run Phillips curve is
  • inverted u shape
  • horizontal
  • inverse l shape
  • vertical
Answer: vertical
Q9 | Which among the followings is not the feature of monetarism?
  • fiscal policy causes no long-term increase in real output
  • only a trade-off in the short-term
  • tend to emphasis supply-side unemployment (natural rate)
  • demand- deficient unemployment big causes
Answer: demand- deficient unemployment big causes
Q10 | According to Keynes Investment is a function of
  • dumping
  • income
  • saving
  • interest
Answer: interest
Q11 | “Interest is poorly a monetary phenomenon “is a very famous statement made by
  • j m keynes
  • hamilton
  • friedman
  • j b say
Answer: j m keynes
Q12 | Which one the following economists is the chief advocate of supply side economics
  • arther laffer
  • robert lucas
  • neil wallace
  • both a and c
Answer: arther laffer
Q13 | Advocates of New classical Economics are
  • robert lucas
  • neil wallace
  • thomas surgent
  • all of the above
Answer: all of the above
Q14 | The Laffer curve is associated with
  • new classical economics
  • supply side economics
  • keynesian economics
  • new keynesian economics
Answer: supply side economics
Q15 | The doctrine of Policy ineffectiveness postulate is associated with
  • new classical economics
  • supply side economics
  • new keynesian economics
  • monetarism
Answer: new classical economics
Q16 | The concept of Rational expectation is associated with
  • natural rate of unemployment hypothesis
  • new classical hypothesis
  • both a and b
  • none of these
Answer: new classical hypothesis
Q17 | The idea of Adaptive expectation is associated with
  • natural unemployment rate hypothesis
  • new classical economics
  • both a and b
  • none of these
Answer: natural unemployment rate hypothesis
Q18 | The idea of rational expectation first given by
  • john muth
  • robert lucas
  • neil wallace
  • thomas surgent
Answer: john muth
Q19 | Laffer curve links
  • inflation and unemployment
  • tax revenue and tax rate
  • output and unemployment
  • inflation and interest rate
Answer: tax revenue and tax rate
Q20 | New classical Economics is consistent with
  • policy ineffectiveness postulate
  • policy effectiveness postulate
  • both a and b
  • none of these
Answer: policy ineffectiveness postulate
Q21 | New Classical Economics is based on
  • rational expectation
  • adaptive expectation
  • backward looking expectation
  • all the above
Answer: rational expectation
Q22 | Supply side Economics was emerged against the background of
  • 1930’s great depression
  • 2008 global financial crisis
  • 1970’s stagflation
  • none of these
Answer: 1970’s stagflation
Q23 | The dual decision hypothesis was given by
  • clower
  • crowther
  • robert lucas
  • wallras
Answer: clower
Q24 | The book Elements of Pure Economics was authored by
  • walras
  • clower
  • robert lucas
  • kaldor
Answer: walras
Q25 | The Neo Keynesian quantity constrained model is associated with the work of
  • robert j barro
  • robert m clower
  • leonwalrs
  • none of these
Answer: robert m clower
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