Macroeconomics Quiz module 1

___________ is not the subject matter of macroeconomics.

• Law of demand
• national income

• general price level

• unemployment

Which economy deals with rest of the world?

• Closed

• Open

• Only developing

• Only developed

Which branch of macroeconomics focuses on the problems of developing economies?

• Classical school

• public finance

• monetary economics

• developmental economics

What is the total money value of all goods and services produced by nationals during a year?

• GDP

• GNI

• NDP

• None of the above

The point where aggregate supply and aggregate demand curves intersect is _____.

• Total demand

• Equilibrium demand

• Effective demand

• Non-equilibrium demand

In circular form of economy, the firms supply ______

• goods
• land

• labour

• capital

According to Keynes, in order to increase employment ________ should be increased.

• Aggregate supply

• Aggregate output

• Aggregate investment

• Aggregate demand

According to Keynes, as income increases, both APC and MPC _______.

• Falls

• Rises

• Remains constant

• Is zero

MEC curve ________.

• Slopes upwards

• Slopes downward

• Is horizontal

• Is vertical

The value of multiplier is inversely related to ________.

• MPS

• MPC

• APC

• APS