SURPRISE MOCK-MACRO ECONOMICS 1

WHICH OF THE FOLLOWING DEMAND HAS BEEN CONSIDERED BY KEYNES IN THE THEORY OF INCOME AND EMPLOYMENT AS AGGREGATE DEMAND ?

• EXPOST DEMAND

• EX ANTE DEMAND

• INCOME DEMAND

• MARKET DEMAND

WHICH OF THE FOLLOWING STATEMENT IS FALSE ?

• KEYNES CONSIDERED ECONOMY TO BE UNDER EMPLOYED FROM THE START

• THE VALUE OF MPC IS GREATER THAN MPS IN KEYNES THEORY

• AGGREGATE SUPPLY AND INCOME LINE HAS BEEN CONSIDERED AS SAME IN THE THOERY OF INCOME AND EMPLOYMENT

• THE CURVE OF AUTONOMOUS INVESTMENT IS A U SHAPED CURVE.

IN AN ECONOMY NATIONAL INCOME INCREASES BY 500 CR, AS A RESULT OF INCREASE IN INVESTMENT BY 125 CR.CALCULATE THE MPC AND MPS FROM THE ABOVE DATA.

• 0.45,1

• 0.75,0.25

• 0.34,0.66

• 0.9,0.1

HOW CAN THE PROBLEM OF DEFICIENT DEMAND BE CORRECTED USING THE POLICY OF FISCAL AND MONETARY BY THE GOVERNMENT ?

IN AN ECONOMY S= -50+0.5Y, AND INVESTMENT EXPENDITURE IS 7000 CR.CALCULATE THE

1.EQUILIBRIUM LEVEL OF INCOME

2.CONSUMPTION EXPENDITURE

• 1.14,100

  2.7,100

• 1.15000

  2.6000

• 1.12000

  2.3000

• 1.14000

  2.7000

LEGAL TENDER MONEY WAS ALSO KNOWN AS INCONVERTIBLE AS WELL AS CONVERTIBLE PAPER MONEY ?

• TRUE

• FALSE

AN ECONOMY SAW AN INFLATION AS THE PRODUCERS OF PARTICULAR FIRM INCREASED THE COST OF PRODUCTION BY INCREASING THE WAGES OF THE LABOUR ,WHAT KIND OF INFLATION IS BEING FACED BY THE ECONOMY ?

• COST PUSH

• DEMAND PULL

• HYPER

• CREEPY

STATE ANY 3 COMPONENTS OF THE SUPPLY OF MONEY?.WHAT CAN BE CALLED AS HIGH POWERED MONEY ?

THE RBI CREATES CREDIT FOR THE COMMERICAL BANKS IN WHICH OF THE FOLLOWING SITUATIONS ?

• FOR HANDLING THE FINANCIAL CRISIS OF THE BANKS

• TO COVER UP THE DEBTS OF THE BANKS

• THE RBI HAS NO POWER TO CREATE ANY KIND OF CREDIT

• THE RBI MONITORS THE ACTIONS OF THE BANKS IN CASES OF INSOLVENCY

HOW WOULD THE FOLLOWING TOOLS BE USED BY THE RBI IN CASE THEIR IS DEMAND PULL INFLATION IN THE ECONOMY?

1. 1.BANK RATE

2. 2.CREDIT RATION

3. 3.MARGIN

4. 4.SLR