Economics Practice MCQ Page 46
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: 3924 If investment increases, then the equilibrium amount of saving
- decrease
- stays the same
- increases by less than investment increases
- increases by the same amount as investment
- increases by more than investment increases
Question: 3927 In general,crowding out causes the effect of an increase in government expenditures on output to
- be larger
- be smaller
- be one
- be zero
- not change
Question: 3930 If the money supply is constant,then as the price level falls
- the aggregate supply curve shifts up
- the aggregate supply curve shifts down
- private consumption spending decreases
- real money balances increases
Question: 3931 In a depression economy along a horizontal aggregate supply curve
- wages and prices continuously falling
- real GDP cannot be increased or decreased
- wages and prices are " sticky" downward
- unemployment is relatively low
Question: 3934 The economic showdown in the early 1900s ,business activity was reduced while
- interest rates rose to record levels
- inflation rose to record levels
- real output actually rose
- inventories have not increased
Question: 3935 The correction definition of desire aggregate expenditure with a government sector is given by
- AE =S +(T - G)
- AE = C + S T
- AE = C + I + G
- AE = C + I +G + T
Question: 3936 Milton Friedman 's 100-year evidence for monetarism suggests
- the business were adopted
- there is no evidence that excess monetary growth is associated with inflation in the long run
- inflation is caused by deficit spending by the federal government
- the short-run link between money and prices is variable and unpredictable
Question: 3937 In the long run, the rate of inflation is usually
- greater than the rate of monetary growth
- equal to the rate of monetary growth
- less to the interest rate
- greater to the interest rate
Question: 3938 Supply -side inflation can be caused by
- an increase in the money supply
- an increase in government spending
- a poor harvest
- a tax reduction
- an increase in labor productivity
Question: 3939 In the short run, an unanticipated,one-time increase in the money supply leads also
- a proportional increase in prices with no change in output or interest rates
- increases in output and prices but no change in interest rates
- increases in output and prices and a decline in interest rates
- an increase in output but no change in prices or interest rates
- an increase in output ,a declined in interest rates,but no change in prices
Question: 3940 In the long run,an unanticipated,one- time increase in the money supply leads to
- a proportional increase in prices with no change in output or interest rates
- increases in output and prices but no change in interest rates
- increases in output and prices and a decline in interest rates
- an increase in output but no change in prices or interest rates
- an increase in output ,a decline in interest rates,but no change in prices
Question: 3941 Macroeconomics is the study of
- large firms and consumers
- industries as a whole rather then individual firms
- the economy as a whole
- large groups of firms and households
- individual firms and households
Answers to the questions of Economics on this page
Following list gives the correct choice for the answer of the Economics mcqs.
3924 . D
3927 . B
3930 . D
3931 . C
3934 . D
3935 . C
3936 . D
3937 . C
3938 . C
3939 . C
3940 . A
3941 . C
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