Macroeconomics

JKPSC Assistant Professor (Economics) · Economics · 60 practice questions with answers and explanations: 7 Easy, 53 Medium, 0 Hard.

Sample questions

Sample Easy question 1

Which of these is an automatic stabiliser?

  1. Defence spending
  2. Progressive income tax
  3. A tax holiday
  4. A new road
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Answer: B. Tax revenue rises in booms and falls in recessions automatically.

Sample Easy question 2

GDP stands for:

  1. Gross Dividend Product
  2. General Domestic Product
  3. Gross Domestic Price
  4. Gross Domestic Product
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Answer: D. Value of final goods produced within a country in a year.

Sample Easy question 3

Keynes' 'General Theory' was published in:

  1. 1945
  2. 1950
  3. 1936
  4. 1929
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Answer: C. It gave rise to modern macroeconomics.

Sample Medium question 4

Friedman's modern quantity theory holds that the demand for money is:

  1. Infinite
  2. Zero
  3. Stable
  4. Highly unstable
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Answer: C. It depends on permanent income.

Sample Medium question 5

The monetarist view that 'inflation is always and everywhere a monetary phenomenon' is by:

  1. Milton Friedman
  2. Hicks
  3. Samuelson
  4. Keynes
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Answer: A. It was in his 1963 work.

Sample Medium question 6

The multiplier–accelerator model of the trade cycle was developed by:

  1. Samuelson and Hicks
  2. Keynes
  3. Friedman
  4. Kaldor
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Answer: A. It produces cycles.

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