Question 1

The headline inflation in India is measured in:
A)wpi
B)cpi
C)gdp deflator
D)all

Accepted Answer

A

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

Accepted Answer

The working group in India is generally considered to include individuals in the age range of 15 to 59 years. This age range is commonly used in demographic studies and employment statistics to represent the working-age population.

Question 3

The main type of unemployment referred by the Classicals:
A)voluntary
B)involuntary
C)both
D)none

Accepted Answer

Classical economics typically refers to voluntary unemployment, which occurs when workers choose not to accept jobs at the prevailing wage rate.

Question 4

The main type of unemployment referred by the Keynesian:
A)voluntary
B)involuntary
C)both
D)none

Accepted Answer

Keynesian economics primarily focuses on involuntary unemployment, which occurs when people are willing to work at the prevailing wage rates but cannot find employment.

Question 5

The main type of unemployment referred by the Post-Keynesians:
A)voluntary
B)involuntary
C)natural rate
D)none

Accepted Answer

The answer of The main type of unemployment referred by...

Question 6

Main reason for frictional unemployment is :
A)lack of opportunities
B)low wage
C)high cost
D)market imperfection

Accepted Answer

Frictional unemployment occurs due to the time it takes for workers to find new jobs that better match their skills, interests, or desired location. This is often a result of market imperfections such as information asymmetries, where employers and job seekers have difficulty finding each other.

Question 7

Okun's law related with :
A)unemployment and growth rate
B)inflation and growth rate
C)wage lose
D)none

Accepted Answer

Okun's Law describes the relationship between unemployment and economic growth, specifically how changes in the unemployment rate are related to the growth rate of a country's GDP.

Question 8

The term Stagflation is coined by:
A)samuelson
B)iain macleod
C)keynes
D)none

Accepted Answer

Iain Macleod, a British Conservative Party politician and Chancellor of the Exchequer, is credited with coining the term "stagflation" during a speech to Parliament in 1965 to describe a situation where inflation and unemployment rise simultaneously.

Question 9

Long run Phillips Curve is :
A)parallel
B)horizontal
C)vertical
D)kinked

Accepted Answer

The long-run Phillips Curve is vertical, indicating that there is no trade-off between inflation and unemployment in the long run. This concept is based on the natural rate of unemployment, where inflation expectations are fully adjusted.

Question 10

In business cycle, depression is followed by:
A) boom
B)recovery
C)recession
D)none of the above

Accepted Answer

In the business cycle, a depression is typically followed by a period of recovery, where economic activity starts to pick up and grow again before reaching a peak (or boom).

Question 11

A business cycle has:
A)three phases
B)four phases
C)five phases
D)six phases

Accepted Answer

A business cycle typically has four phases: expansion, peak, contraction (or recession), and trough.

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

Accepted Answer

Open market operations specifically refer to the buying and selling of government securities by the Reserve Bank of India (RBI) to control the money supply in the economy.

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

Accepted Answer

The primary objectives of monetary policy typically include price stability, balance of payments equilibrium, and economic growth. Reduction in exports is not a usual objective of monetary policy; instead, policies may aim to enhance or stabilize exports rather than reduce them.

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

Accepted Answer

Regulation of margin requirements is a qualitative credit control measure aimed at controlling the amount of credit that can be extended against securities. The other options (bank rate, cash reserve ratio, and open market operations) are quantitative measures that directly affect the amount of money in the banking system.

Question 15

Which of the following is not an element of high Powered money?
A)currency
B)repos
C)required reserves
D)excess reserves

Accepted Answer

High-powered money, also known as the monetary base, includes currency in circulation and reserves held by banks at the central bank. Repos (repurchase agreements) are not considered part of high-powered money. They are short-term borrowing agreements for dealers in government securities.

Question 16

The ratio of money supply to high powered money is:
A)slr
B)crr
C)money multiplier
D)bank rate

Accepted Answer

The ratio of money supply to high powered money is known as the money multiplier. It indicates how much the money supply increases for each unit increase in high powered money.

Question 17

Fiscal Policy is a policy of the
A)central bank
B)government
C)finance commission
D)finance minister

Accepted Answer

Fiscal policy refers to the use of government spending and tax policies to influence economic conditions, including demand for goods and services, employment, and inflation. It is a policy tool of the government, not of the central bank, finance commission, or finance minister alone, although the finance minister plays a key role in its formulation and implementation.

Question 18

Fiscal Policy includes:
A)expenditure policy
B)tax policy
C)both a and b
D)neither a nor b.

Accepted Answer

Fiscal policy involves government spending (expenditure policy) and taxation (tax policy) as tools to influence the economy.

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

Accepted Answer

The answer of The objective of Monetary Policy is :
A)to...

Question 20

Fiscal Policy refers to policy towards:
A)public revenue
B)public expenditure
C)public debt
D)all of the above

Accepted Answer

Fiscal policy encompasses government actions regarding public revenue (through taxes and other means), public expenditure (spending on goods, services, and public projects), and public debt management. Therefore, it includes all the options listed.

Quiz 1: Macroeconomic Policy and Business Cycles

The headline inflation in India is measured in:

The working group in India include in the age:

The main type of unemployment referred by the Classicals:

The main type of unemployment referred by the Keynesian:

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

Main reason for frictional unemployment is :

Okun's law related with :

The term Stagflation is coined by:

Long run Phillips Curve is :

In business cycle, depression is followed by:

A business cycle has:

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

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

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

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

The ratio of money supply to high powered money is:

Fiscal Policy is a policy of the

Fiscal Policy includes:

The objective of Monetary Policy is :

Fiscal Policy refers to policy towards: