Deck 1: Macroeconomic Theory and Concepts

Question 1

According to Keynes, there is

A)no direct relationship between the quantity of money and price level
B)direct relationship between money and price level
C)no direct relationship between demand for money and supply of money
D)direct relationship between demand for money and supply of money

Answer 1

no direct relationship between the quantity of money and price level

Question 2

The concepts of inside money and outside money is given by

A)milton friedman
B)j m keynes
C)gurley and shaw
D)none of these

Answer 2

gurley and shaw

Question 3

Assertion (A): Long-run Philips curve is a vertical line at the NAIRU Reason (R): Non-accelerating inflation raise of unemployment, more or less, stands accepted

A)both (a) and (r) are false.
B)both (a) and (r) are true, but (r) is not the correct reason.
C)both (a) and (r) are true, and (r) is the explanation.
D)(a) is true, (r) is false.

Answer 3

both (a) and (r) are true, and (r) is the explanation.

Question 4

The quantity theory of money first propounded in 1588 by an Italian Economist

A)david hume
B)davanzatti
C)j s mill
D)ricardo

Question 5

Which among the followings is not the feature of monetarism?

A)fiscal policy causes no long-term increase in real output
B)only a trade-off in the short-term
C)tend to emphasis supply-side unemployment (natural rate)
D)demand- deficient unemployment big causes

Question 6

According to Keynes Investment is a function of

A)dumping
B)income
C)saving
D)interest

Question 7

"Interest is poorly a monetary phenomenon "is a very famous statement made by

A)j m keynes
B)hamilton
C)friedman
D)j b say

Question 8

Which one the following economists is the chief advocate of supply side economics

A)arther laffer
B)robert lucas
C)neil wallace
D)both a and c

Question 9

Advocates of New classical Economics are

A)robert lucas
B)neil wallace
C)thomas surgent
D)all of the above

Question 10

The Laffer curve is associated with

A)new classical economics
B)supply side economics
C)keynesian economics
D)new keynesian economics

Question 11

The doctrine of Policy ineffectiveness postulate is associated with

A)new classical economics
B)supply side economics
C)new keynesian economics
D)monetarism

Question 12

The concept of Rational expectation is associated with

A)natural rate of unemployment hypothesis
B)new classical hypothesis
C)both a and b
D)none of these

Question 13

The idea of Adaptive expectation is associated with

A)natural unemployment rate hypothesis
B)new classical economics
C)both a and b
D)none of these

Question 14

The idea of rational expectation first given by

A)john muth
B)robert lucas
C)neil wallace
D)thomas surgent

Question 15

New classical Economics is consistent with

A)policy ineffectiveness postulate
B)policy effectiveness postulate
C)both a and b
D)none of these

Question 16

New Classical Economics is based on

A)rational expectation
B)adaptive expectation
C)backward looking expectation
D)all the above

Question 17

Supply side Economics was emerged against the background of

A)1930's great depression
B)2008 global financial crisis
C)1970's stagflation
D)none of these

Question 18

The dual decision hypothesis was given by

A)clower
B)crowther
C)robert lucas
D)wallras

Question 19

The book Elements of Pure Economics was authored by

A)walras
B)clower
C)robert lucas
D)kaldor

Question 20

The Neo Keynesian quantity constrained model is associated with the work of

A)robert j barro
B)robert m clower
C)leonwalrs
D)none of these