Unit-I-Chapter 1- Overview Macroeconomics

Macroeconomics distinguishes between the real economy and the

• monetary economy
• virtual economy
• normative economy
• underground economy.

According to the analysis of the British economist John Maynard Keynes

• markets coordinate supply and demand so that a policy of laissez-faire would prevent recession
• economic fluctuations were the cumulative result of mistakes made by businesses and households in an uncertain world
• government demand could be used to smooth fluctuations in aggregate output and income
• supply creates its own demand through the circular flow of economic activity.

An important indicator of a nation's well-being is

• Gross Domestic Product (GDP)
• Gross National Product (GNP)
• Gross National income (GNI)
• the growth rate of GDP or GNP

Macroeconomics as a separate branch of economics, emerged after the British economist John Maynard Keynes published his celebrated book

• The Wealth of Nations
• On the Principles of political Economy and Taxation
• The Affluent Society
• The General Theory of Employment, Interest and Money

Who is considered as father of modern macroeconomics?

• Adam Smith
• Prof. J. M. Keynes
• Prof. J. N. Keynes
• Alfred Marshal

The book “General Theory of Employment, Interest and Money” was published in

• 1836
• 1863
• 1936
• 1963

What are the tools of macroeconomics?

• Monetary Policy
• Fiscal Policy
• Income Policy
• All of the above

Macroeconomics became popular after

• 1929- 33
• 1972-73
• 1996-97
• 2006-07

The term ‘macro’ has been derived from

• Greek word ‘makros’ which means large
• English word ‘makros’ which means large
• Greek word ‘makros’ which means small
• French word ‘makros’ which means large

In macroeconomics, we study about

• Theory of National Income & Employment
• Theory of Money Supply & Price Level
• Theory of International Trade and Economic growth
• All of the above