Economics Practice MCQ Page 43
Multiple Choice questions for Economics in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 3673 An increase in the money supply in the classical quantity theory cause the
- aggregate demand curve to shift to the left proportionately
- aggregate supply curve to shift to the left proportionately
- aggregate demand curve to sift to the right proportionately
- aggregate supply curve to shift to the right proportionately
- aggregate demand and aggregate supply curves to shift o the right
Question: 3674 The classical quantity theory was abandoned by most macro economists because of
- world war I
- world war II
- the founding of the Federal Reserve System
- high inflation in the 1970s
- highly unemployment in the Great Depression
Question: 3679 According to classical economists, velocity would
- never change
- change systematically over the business cycle
- very inversely with the money supply
- change only slowly in response
- increase whenever real output increased
Question: 3686 A Keynesian equilibrium with less than full employment can occur on the portion of the aggregate supply curve that is
- upward sloping
- downward sloping
- vertical
- horizontal
- horizontal or upward sloping
Question: 3687 the existence of bottlenecks in some industries while there is still some unemployment in the economy causes the Keynesian aggregate supply curve to
- have an upward sloping segment
- be shaped like a backward L
- be vertical
- be horizontal
- have a downward sloping segment
Question: 3688 If the aggregate supply curve is horizontal, it means that
- firms cannot increase output
- firms are unwilling to increase output
- firms will increase output only if prices rise
- firms will increase output at the current price
- firms will increase output if prices fall
Question: 3801 According to the classical school,unemployment was responsive to changes in
- M/P
- P-
- M
- Money wages
Question: 3802 In the AD-AS quantity theory ,a decrease in aggregate demand results in
- higher price level
- lower price level
- higher price GDP
- lower real GDP
Question: 3803 In the AD-AS quantity theory model ,changes in the money supply affect
- the price level
- the velocity of circulation
- real GDP
- employment
Question: 3804 People who would rely on a gold standard rather than allowing government to control the printing of money are concerned about the problem of
- inflation
- recession
- running out of gold
- too little money in the economy
Question: 3805 People who would rely on a gold standard rather than allowing government to control the printing of money are concerned about the problem of
- inflation
- recession
- running out of gold
- too little money in the economy
Question: 3806 The classical school's economic philosophy of laissez-faire was challenged by
- Adam Smith in the Wealth of Nations
- evidence that velocity was not constant
- the Great Depression
- the actual operation of the gold standard
Answers to the questions of Economics on this page
Following list gives the correct choice for the answer of the Economics mcqs.
3673 . C
3674 . E
3679 . D
3686 . E
3687 . A
3688 . D
3801 . D
3802 . B
3803 . A
3804 . A
3805 . A
3806 . C
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