Roots of Modern Macroeconomics Mcqs

1.

The regarding the new classical macroeconomics is hoe realistic is the assumption ?

A. that monetary policy affects aggregates demand

B. that markets do not clear quickly

C. that fiscal policy affects aggregate demand

D. of rational expectations.

Answer & Solution Discuss in Board

2.

It is difficult to determine if the velocity of money is constant over time because ?

A. it is difficult to measure the value of nominal GDP over time

B. there has been very little fluctuation in the money supply over time.

C. it is difficult to measure the demand for money over time

D. whether velocity is constant or not may depend on how the money supply is measure.

Answer & Solution Discuss in Board

3.

The quantity theory of money implies that a given percentage change in the money supply will cause ?

A. an equal percentage change in nominal DGP.

B. an equal percentage change in real GDP

C. a larger percentage change in nominal GDP

D. a smaller percentage change in nominal

Answer & Solution Discuss in Board

4.

People are said to have rational expectations if they ?

A. assume that this year’s inflation rate will be the same as last year’s inflation rate

B. merely guess at the inflation rate.

C. assume that this year’s inflation rate will be equal to the average inflation rate over the past 10 years

D. Use all available information in forming their expectations.

Answer & Solution Discuss in Board

5.

The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ?

A. Rational-expectations hypothesis

B. Passive-expectations hypothesis

C. adaptive expectations hypothesis

D. lagged-expectations hypothesis.

Answer & Solution Discuss in Board

6.

The nation that the government can establish the macroeconomic is known as ?

A. fine tuning

B. monestarism

C. microeconomics foundations of macroeconomics

D. the classical model

Answer & Solution Discuss in Board

7.

According of Keynes, the level of employment is determined by ?

A. the behaviour of trade unions.

B. the quantity of money

C. price and wages

D. the level of aggregate demand for goods and services

Answer & Solution Discuss in Board

8.

According to classical models, the level of employment is determined primarily by ?

A. the level of aggregate demand for goods and services.

B. prices and wages

C. interest rates

D. the quantity of money

Answer & Solution Discuss in Board

9.

The economists who emphasised wage flexibility as a solution for unemployment were ?

A. new-Keynesian.

B. post-Keynesian.

C. classical economists.

D. Keynesian.

Answer & Solution Discuss in Board

10.

A group of modern economists who believe that institutional factors and confidence strongly influence business behaviour and that expanding demand will usually increase output rather than prices are the ?

A. monetarists.

B. keynesians

C. post-keynesians

D. new classical school

Answer & Solution Discuss in Board

Practice MCQ Questions and answers on Roots of Modern Macroeconomics Mcqs

1. The regarding the new classical macroeconomics is hoe realistic is the assumption ?

Answer & Solution

2. It is difficult to determine if the velocity of money is constant over time because ?

Answer & Solution

3. The quantity theory of money implies that a given percentage change in the money supply will cause ?

Answer & Solution

4. People are said to have rational expectations if they ?

Answer & Solution

5. The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ?

Answer & Solution

6. The nation that the government can establish the macroeconomic is known as ?

Answer & Solution

7. According of Keynes, the level of employment is determined by ?

Answer & Solution

8. According to classical models, the level of employment is determined primarily by ?

Answer & Solution

9. The economists who emphasised wage flexibility as a solution for unemployment were ?

Answer & Solution

10. A group of modern economists who believe that institutional factors and confidence strongly influence business behaviour and that expanding demand will usually increase output rather than prices are the ?

Answer & Solution

Read More Section(Economics Mcqs)

1.

The regarding the new classical macroeconomics is hoe realistic is the assumption ?

2.

It is difficult to determine if the velocity of money is constant over time because ?

3.

The quantity theory of money implies that a given percentage change in the money supply will cause ?

4.

People are said to have rational expectations if they ?

5.

The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ?

6.

The nation that the government can establish the macroeconomic is known as ?

7.

According of Keynes, the level of employment is determined by ?

8.

According to classical models, the level of employment is determined primarily by ?

9.

The economists who emphasised wage flexibility as a solution for unemployment were ?

10.

A group of modern economists who believe that institutional factors and confidence strongly influence business behaviour and that expanding demand will usually increase output rather than prices are the ?