vu eco403 Final Term - Quiz No.17
vu eco403 Macroeconomics Quiz
This quiz belongs to book/course code vu eco403 Macroeconomics of vu organization. We have 22 quizzes available related to the book/course Macroeconomics. This quiz has a total of 10 multiple choice questions (MCQs) to prepare and belongs to topic Final Term. NVAEducation wants its users to help them learn in an easy way. For that purpose, you are free to prepare online MCQs and quizzes.
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Question 1: If an economy has population of 200 million people, 100 million unemployed and 70 million employed, what is the labor force.
370 million
170 million
130 million.
100 million
Question 2: In the Mundell-Fleming model, M/P = L (r*, Y) is the:
LM* equation
AS equation
None of the given options
IS* equation
Question 3: An item that is intrinsically worthless is:
Commodity money
Precious metals
Fiat money
Barter items
Question 4: If State Bank of Pakistan wishes to pursue a tight monetary policy it would:
Increase the minimum reserve asset ratio
Buy government securities on the open market
Lower interest rates
Sell government securities on the open market
Question 5: The Average Propensity to Consume (APC) is:
Consumption divided by disposable income
Saving divided by consumption
The slope of the consumption function (or line)
The proportion of disposable income used for production
Question 6: If inflation falls from 6 percent to 4 percent and nothing else changes, then which of the following will happen according to the Fisher effect:
Both the nominal and the real interest rates fall by 2%
Neither the nominal interest rate nor the real interest rate changes
The nominal interest rate falls by 2% and the real interest rate remains constant
The nominal interest rate does not change, but the real interest rate falls by 2%
Question 7: If net exports are negative, this implies that the country has a:
Trade surplus
Trade deficit
Government budget surplus
Government budget deficit
Question 9: In the Solow growth model with technological growth rate, L E shows:
Capital per effective worker
Output per effective worker
Output per worker
The number of effective workers
Question 10: The difference between exports and imports in determining the GDP is known as the:
Net exports
Import tariffs
Net imports
Net income
