35. The macroeconomic equilibrium takes place when:
(a) S=LAS =AD(b) SAS>LAS>AD(c) SASAD(d) SAS>LAS<AD
35. The macroeconomic equilibrium takes place when: Read More »
34. In classical model, if the supply of labor is increased, real wages will
(a) fall (b) increase(c) remain same(d) none of these
34. In classical model, if the supply of labor is increased, real wages will Read More »
33. The aggregate demand curve shows the pairs of P and Y where real money supply is equal to:
(a) demand for commodity(b) demand for labor(c) demand for money (d) all of these
32. The Keynesian aggregate demand curve is a function of:
(a) money supply (b) govt. expenditure(c)traces and autonomous Investment.(d) all of these
32. The Keynesian aggregate demand curve is a function of: Read More »
31. The classical aggregate demand curve is a function of :
(a) money demanded (b) money supply(c) money distributed(d) money saved
31. The classical aggregate demand curve is a function of : Read More »
30. If value of K is low and demand for money is more sensitive to change in income, the AD will be:
(a) more rigid (b) less rigid(c) less elastic (d) more elastic
29. If LM is less elastic and IS is more elastic, than the resulting ADC will be:
(a) more steeper (b) less steeper(c) more flatter (d) less flatter
29. If LM is less elastic and IS is more elastic, than the resulting ADC will be: Read More »
28. The ADC shows how expenditures of an economy change as a result of change in price level while there are given:
(a) autonomous individual expenditures(b) money supply(c) fiscal policy(d) all of these
27. Due to rise in prices, the real value of financial assets falls which induces people to reduce expenditures is called:
(a) inter-temporal effect(b) Pigou effect(c) income effect (d) Keynes effect
26. Because of rise in price level, the producers fail to purchase capital goods which is called inter-temporal:
(a) price effect (b) income effect(c) substitution effect (d) none of these