Deck 1: Macroeconomic Policy and Business Cycles

Question 1

The headline inflation in India is measured in:

A)wpi
B)cpi
C)gdp deflator
D)all

Answer 1

wpi

Question 2

The working group in India include in the age:

A)14 to 55
B)15 to 59
C)20 and above
D)25 and above

Answer 2

15 to 59

Question 3

The main type of unemployment referred by the Classicals:

A)voluntary
B)involuntary
C)both
D)none

Answer 3

voluntary

Question 4

The main type of unemployment referred by the Keynesian:

A)voluntary
B)involuntary
C)both
D)none

Question 5

The main type of unemployment referred by the Post-Keynesians:

A)voluntary
B)involuntary
C)natural rate
D)none

Question 6

Main reason for frictional unemployment is :

A)lack of opportunities
B)low wage
C)high cost
D)market imperfection

Question 7

Okun's law related with :

A)unemployment and growth rate
B)inflation and growth rate
C)wage lose
D)none

Question 8

The term Stagflation is coined by:

A)samuelson
B)iain macleod
C)keynes
D)none

Question 9

Long run Phillips Curve is :

A)parallel
B)horizontal
C)vertical
D)kinked

Question 10

In business cycle, depression is followed by:

A) boom
B)recovery
C)recession
D)none of the above

Question 11

A business cycle has:

A)three phases
B)four phases
C)five phases
D)six phases

Question 12

Open market operations refer to the sale and purchase by the RBI of:

A)gold
B)foreign exchange
C)government securities
D)all the above

Question 13

Which of the following is not an objective of monetary policy?

A)price stability
B)balance of payments equilibrium
C)economic growth
D)reduction in export

Question 14

Which of the following is not a quantitative credit control measure?

A)bank rate
B)cash reserve ratio
C)regulation of margin requirement
D)open market operation

Question 15

Which of the following is not an element of high Powered money?

A)currency
B)repos
C)required reserves
D)excess reserves

Question 16

The ratio of money supply to high powered money is:

A)slr
B)crr
C)money multiplier
D)bank rate

Question 17

Fiscal Policy is a policy of the

A)central bank
B)government
C)finance commission
D)finance minister

Question 18

Fiscal Policy includes:

A)expenditure policy
B)tax policy
C)both a and b
D)neither a nor b.

Question 19

The objective of Monetary Policy is :

A)to print notes of desired denominations
B)to control cost and supply of money
C)to provide loan to government
D)none of these

Question 20

Fiscal Policy refers to policy towards:

A)public revenue
B)public expenditure
C)public debt
D)all of the above

Question 21

In a closed economy which of the following is not a macroeconomic objective?

A)national income growth
B)price level stability
C)bop stability
D)employment

Question 22

The percentage of deposits of commercial banks statutorily kept with the RBI is :

A)cash reserve ratio
B)statutory liquidity ratio
C)repo rate
D)none of these

Question 23

Peak is the --- turning point of the business cycle.

A)upper turning point
B)lower turning point
C)middle turning point
D)none of these