Q. Which one of the following will cause a movement up along an economy's saving schedule?
✅ Correct Answer: (C)
an increase in disposable income.
Macroeconomics Theories and Policies 1 MCQs and Notes
Q. Dissaving means:
✅ Correct Answer: (A)
that households are spending more than their current incomes.
Q. A period of expansion and contraction measured by real GDP is called
✅ Correct Answer: (A)
business cycle
Q. Who argued that national income issimply equal to “net product of agriculture”?
✅ Correct Answer: (B)
physiocrats
Q. Investment is reckoned by which method for computingGDP:
✅ Correct Answer: (C)
expenditure method
Q. The Cambridge version of the quantity theory of money was developed by:
✅ Correct Answer: (C)
pigou
Q. Which of the following is an example of fiscal policy
✅ Correct Answer: (B)
change in tax rate
Q. An increase in aggregate demand is more likely to lead to demand pull inflation
✅ Correct Answer: (B)
if aggregate supply is completely inelastic
Q. Demand pull inflation may be caused by
✅ Correct Answer: (B)
a decrease in interest rate
Q. Which type of bank deals with short term credit?
✅ Correct Answer: (C)
commercial bank