Economics Practice MCQ Page 42
Multiple Choice questions for Economics in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 3641 Actual total saving equal actual investment
- only at the equilibrium price level
- only at the equilibrium interest rate
- whenever Say's law holds
- always
- when either b or c is true
Question: 3643 According to the classical quantity theory, if the money supply in the economy in the previous problem decreased to $400 billion
- velocity would increase to 6
- velocity would decrease to 3.6
- real output would decrease to $1.600 billion
- the price level would decrease to 96
- velocity real output and the price level would all change
Question: 3644 If real GDP is $2,000 billion, the GDP deflator is 120 and the money supply is $500 billion them velocity equals
- 0.21
- 0.25
- 3.33
- 4.00
- 4.80
Question: 3645 In a hyperinflation, velocity would be very
- low because money is scarce
- high because money is not valuable
- high because money is losing its value rapidly
- low because no one wants to hod money
- unstable, because people would behave erratically
Question: 3646 Classical economists did not assume that
- say's law held
- prices were flexible
- all unemployment was voluntary
- velocity was independent of the money supply
- the money supply determined output
Question: 3647 If the public discovers that it can get along with less money for a given level of expenditures, then the money supply and real output are constant
- velocity and the price level would increase
- velocity and the price level would decrease
- velocity would increase and the price level would decrease
- velocity would decrease and the price level would increase
- neither velocity nor the price level would change
Question: 3649 In the classical quantity theory, the main connection from the money supply to real output is
- through interest rates
- through the price level
- through aggregate demand
- through velocity
- nonexistent
Question: 3651 In a recession, classical economists advocated
- expansion of the money supply
- contraction of the money supply
- expansion of government spending
- contraction of government spending
- doing nothing
Question: 3652 the equation of exchange is written
- MQ = PV
- MP = QV
- MV = PQ
- MQ = GDP
- MP = GDP
Question: 3670 According to the classical quantity theory the aggregate demand and aggregate supply curves slope
- downward and upward, respectively
- downward and vertically respectively
- vertically upward respectively
- downward and horizontally respectively
- horizontally and upward respectively
Question: 3673 An increase in the money supply in the classical quantity theory cause the
- aggregate demand curve to shift to the left proportionately
- aggregate supply curve to shift to the left proportionately
- aggregate demand curve to sift to the right proportionately
- aggregate supply curve to shift to the right proportionately
- aggregate demand and aggregate supply curves to shift o the right
Question: 3674 The classical quantity theory was abandoned by most macro economists because of
- world war I
- world war II
- the founding of the Federal Reserve System
- high inflation in the 1970s
- highly unemployment in the Great Depression
Answers to the questions of Economics on this page
Following list gives the correct choice for the answer of the Economics mcqs.
3641 . D
3643 . D
3644 . E
3645 . C
3646 . E
3647 . A
3649 . E
3651 . E
3652 . C
3670 . B
3673 . C
3674 . E
Select Page Number
MCQ for Practicing Subject Tests