Question 1

A temporary unemployment which exists during the period of the transfer of labor from one occupation to another is called

Accepted Answer

A)  voluntary unemployment
B)  involuntary unemployment
C)  cyclical unemployment
D)  frictional unemployment D

Question 2

Who develop the ISLM open economy model?

Accepted Answer

A)  mundell
B)  fleming
C)  both
D)  none C

Question 3

IS curve represents the equilibrium of ............. sector.

Accepted Answer

A)  money
B)  goods
C)  government
D)  all B

Question 4

The goods market is otherwise referred to as:

Accepted Answer

A)  money
B)  financial
C)  both
D)  real sector

Question 5

ISLM model was basically .............. sector model:

Accepted Answer

A)  two
B)  one
C)  three
D)  four

Question 6

Original IS-LM model is a .......... model.

Accepted Answer

A)  open
B)  closed
C)  both
D)  none

Question 7

The relationship between income and interest in the LM curve is:

Accepted Answer

A)  direct
B)  indirect
C)  no relation
D)  none

Question 8

ISLM is used to determine:

Accepted Answer

A)  income
B)  interest
C)  both
D)  all

Question 9

ISLM model was firstly developed by …………

Accepted Answer

A)  hansen
B)  hicks
C)  keynes
D)  none

Question 10

The position of IS curve depends on---

Accepted Answer

A)  rate of interest,
B)  rate of investment,
C)  autonomous expenditure
D)  none of the above

Question 11

For an open economy model which curve is added IS-LM?

Accepted Answer

A)  ms
B)  demand
C)  md
D)  bp.

Question 12

Increase in Government expenditure shift IS curve to:

Accepted Answer

A)  right
B)  left
C)  no change
D)  any of these.

Question 13

One of the limitations of the ISLM model was:

Accepted Answer

A)  static nature
B)  open model
C)  price is exogenous
D)  all

Question 14

The tax cut shift the IS curve to the:

Accepted Answer

A)  right
B)  left
C)  no change
D)  any of these.

Question 15

When more workers are engaged in a work than actually required to work, it is called

Accepted Answer

A)  voluntary unemployment
B)  involuntary unemployment
C)  disguised unemployment
D)  frictional unemployment

Question 16

Decrease in money supply shift the LM curve to the:

Accepted Answer

A)  right
B)  left
C)  no change
D)  any of these.

Question 17

The relationship between income and interest in the IS curve is:

Accepted Answer

A)  direct
B)  indirect
C)  no relation
D)  none

Question 18

The curve which relates the level of income with the rate of interest which is determined by money- market equilibrium corresponding to different levels of demand for money is known as

Accepted Answer

A)  is curve
B)  lm curve
C)  income curve
D)  none of the above.

Exam 2: Business Cycles, IS-LM Model, and Open Economy Model

A temporary unemployment which exists during the period of the transfer of labor from one occupation to another is called

Who develop the ISLM open economy model?

IS curve represents the equilibrium of ............. sector.

The goods market is otherwise referred to as:

ISLM model was basically .............. sector model:

Original IS-LM model is a .......... model.

The relationship between income and interest in the LM curve is:

ISLM is used to determine:

ISLM model was firstly developed by …………

The position of IS curve depends on---

For an open economy model which curve is added IS-LM?

Increase in Government expenditure shift IS curve to:

One of the limitations of the ISLM model was:

The tax cut shift the IS curve to the:

When more workers are engaged in a work than actually required to work, it is called

Decrease in money supply shift the LM curve to the:

The relationship between income and interest in the IS curve is:

The curve which relates the level of income with the rate of interest which is determined by money- market equilibrium corresponding to different levels of demand for money is known as