Question 1

Which among the followings is not the feature of monetarism?

Accepted Answer

A)  fiscal policy causes no long-term increase in real output
B)  only a trade-off in the short-term
C)  tend to emphasis supply-side unemployment (natural rate) 
D)  demand- deficient unemployment big causes D

Question 2

The dual decision hypothesis was given by

Accepted Answer

A)  clower
B)  crowther
C)  robert lucas
D)  wallras A

Question 3

The Neo Keynesian quantity constrained model is associated with the work of

Accepted Answer

A)  robert j barro
B)  robert m clower
C)  leonwalrs
D)  none of these B

Question 4

The idea of Adaptive expectation is associated with

Accepted Answer

A)  natural unemployment rate hypothesis
B)  new classical economics
C)  both a and b
D)  none of these

Question 5

Which one the following economists is the chief advocate of supply side economics

Accepted Answer

A)  arther laffer
B)  robert lucas
C)  neil wallace
D)  both a and c

Question 6

The concept of Rational expectation is associated with

Accepted Answer

A)  natural rate of unemployment hypothesis
B)  new classical hypothesis
C)  both a and b
D)  none of these

Question 7

Assertion (A): Long-run Philips curve is a vertical line at the NAIRU Reason (R): Non-accelerating inflation raise of unemployment, more or less, stands accepted

Accepted Answer

A)  both (a)  and (r)  are false.
B)  both (a)  and (r)  are true, but (r)  is not the correct reason.
C)  both (a)  and (r)  are true, and (r)  is the explanation.
D)  (a)  is true, (r)  is false.

Question 8

The Laffer curve is associated with

Accepted Answer

A)  new classical economics
B)  supply side economics
C)  keynesian economics
D)  new keynesian economics

Question 9

The quantity theory of money first propounded in 1588 by an Italian Economist

Accepted Answer

A)  david hume
B)  davanzatti
C)  j s mill
D)  ricardo

Question 10

New Classical Economics is based on

Accepted Answer

A)  rational expectation
B)  adaptive expectation
C)  backward looking expectation
D)  all the above

Question 11

According to Keynes Investment is a function of

Accepted Answer

A)  dumping
B)  income
C)  saving
D)  interest

Question 12

The doctrine of Policy ineffectiveness postulate is associated with

Accepted Answer

A)  new classical economics
B)  supply side economics
C)  new keynesian economics
D)  monetarism

Question 13

"Interest is poorly a monetary phenomenon "is a very famous statement made by

Accepted Answer

A)  j m keynes
B)  hamilton
C)  friedman
D)  j b say

Question 14

According to Keynes, there is

Accepted Answer

A)  no direct relationship between the quantity of money and price level
B)  direct relationship between money and price level
C)  no direct relationship between demand for money and supply of money
D)  direct relationship between demand for money and supply of money

Question 15

The book Elements of Pure Economics was authored by

Accepted Answer

A)  walras
B)  clower
C)  robert lucas
D)  kaldor

Question 16

The concepts of inside money and outside money is given by

Accepted Answer

A)  milton friedman
B)  j m keynes
C)  gurley and shaw
D)  none of these

Question 17

Advocates of New classical Economics are

Accepted Answer

A)  robert lucas
B)  neil wallace
C)  thomas surgent
D)  all of the above

Question 18

Supply side Economics was emerged against the background of

Accepted Answer

A)  1930's great depression
B)  2008 global financial crisis
C)  1970's stagflation
D)  none of these

Question 19

New classical Economics is consistent with

Accepted Answer

A)  policy ineffectiveness postulate
B)  policy effectiveness postulate
C)  both a and b
D)  none of these

Question 20

The idea of rational expectation first given by

Accepted Answer

A)  john muth
B)  robert lucas
C)  neil wallace
D)  thomas surgent

Exam 1: Macroeconomic Theory and Concepts