vu eco403 Final Term - Quiz No.13
vu eco403 Macroeconomics Quiz
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Question 1: The three major components of domestic debt are:
Permanent debt, floating debt and unfunded debts
Permanent debt, floating debt and funded debts
Government debt, floating debt and unfunded debts
External debt, floating debt and unfunded debts
Question 2: With no population growth, the steady-state level of capital per worker will increase whenever:
The amount of investment per worker decreases
The depreciation rate increases
The saving rate increases.
All of the given options
Question 3: Inflation resulting from demand shocks is known as:
Demand pull inflation
Cost push inflation
Expected inflation
Food inflation
Question 4: The demand for money represents the idea that there is:
A positive relationship between the interest rate and the quantity of money demanded.
A negative relationship between the level of aggregate output and the quantity of money demanded.
A negative relationship between the interest rate and the quantity of money demanded.
A negative relationship between the price level and the quantity of money demanded.
Question 5: Which of the following is TRUE about the measurement of nominal Gross Domestic Product?
It is measured in current dollars
It is measured in fixed dollars
It is measured at a constant output level
It is measured as the difference between the current year's GDP and last year's GDP
Question 6: Suppose the population of South Korea is 200 million people, 100 million unemployed and 70 million employed, what is the rate of employment in this economy:
70/170 *100
200/70*100
100/170*100
200/170*100
Question 7: The IS curve will shift to the right if:
Consumer confidence in the economy improves
Firms become more optimistic about the economy and decide to invest more at eachinterest rate.
The government increases transfer payments
All of the given options
Question 8: The short-run is the time period in which:
Firms can purchase new capital
Potential output is fixed
Price does not change very much
Government spending fixed
Question 9: In principle, a decrease in required-reserve ratios would:
Decrease deposits
Increase the money supply
Decrease excess reserves
Increase required reserves
Question 10: If central bank of Pakistan (SBP) wishes to follow tight monetary policy it would __________
Increase the minimum reserve asset ratio
Buy government securities on the open market
Lower interest rates
Sell government securities by the open market operation