Macroeconomics MCQ: Multiple Choice Questions

Macroeconomics Objective MCQ: Multiple Choice Questions

Quiz: Macroeconomics Multiple Choice Questions
Type: Objective MCQ
Number of questions: 50
Updates: Published on 12-09-2021

Read 50+ Multiple Choice Questions on ‘Macroeconomics Objective MCQ’. Read previous topic Microeconomics MCQ. For: ICAR JRF, SRF, NET, CET, IBPS AFO and all other agricultural competition exams, BA Honours and all other non-agricultural competition exams.

Also read:

Agricultural economics multiple choice questions

Econometrics multiple choice questions

Macroeconomics MCQ

Answer Key Links After Each 5th MCQ

Question 01. Microeconomics is the study of a single unit or a single firm whereas the macroeconomics is..

(a). The study of national economy as whole.
(b). The study of regional economy as whole.
(c). International economics.
(d). All of the above.

Question 02. Which one of the following is not a key people behind macroeconomics?

(a). Thomas J. Sargent.
(b). Janet Yellen.
(c). Paul Herald.
(d). Richard Thaler.

Question 03. Which one of the following is not a topic within macroeconomics?

(a). Fiscal policy.
(b). A monopoly market.
(c). Monetary policy.
(d). Supply-side economics

Question 04. ‘The General Theory of Employment, Interest, and Money’ is the monumental work of..

(a). J. M. Keynes.
(b). Robert Sahhlas.
(c). Wassily Leontief.
(d). Paul Krugman.

Question 05. Some economics models are considered as rigorous macroeconomic models. The economist behind these models is..

(a). Finn E. Kydland.
(b). Edward C. Prescott.
(c). Both a and b.
(d). None of the above.

See answer

Question 06. Full form of RBC is..

(a). Real Business Cycle.
(b). Rational Business Cycle.
(c). Revolutionary Business Cycle.
(d). Random Business Cycle.

Question 07. How RBC explains macroeconomics fluctuations?

(a). Predictable events that hit the economy
(b). Unpredictable events that hit the economy.
(c). Only internal shocks.
(d). Only external shocks.

Question 08. The Keynesian economics mainly focuses on..

(a). National income.
(b). Equilibrium of the firm.
(c). Allocation of the resources .
(d). All of the above.

Question 09. National income in equal to..

(a). Total employment.
(b). Total unemployment.
(c). Global employment.
(d). Regional employment.

Question 10. Which one of the following is the significant factor considering Keynes’s theory.

(a). ASF.
(b). ADF.
(c). CF.
(d). IF.

See answer

Agricultural Economics Objective Questions

Question 11. Consumption Function depends on:

(a). Size of income.
(b). Propensity to consume.
(c). Both a and b.
(d). None of the above.

Question 12. Which one of the following pairs is true?

(a). Determination of Rate of Interest – By speculative motive.
(b). Regulation of supply of money – By monetary authorities.
(c). Determination of liquidity preference – By supply of money.
(d). All of the above.

Question 13. Which is true about the Rate of Interest?

(a). Stable in the short run.
(b). Unstable in short run.
(c). Stable in long run.
(d). Stable in mid to long run.

Question 14. Which is true about Marginal Efficiency of Capital?

(a). Stable in the short run.
(b). Unstable in short run.
(c). Stable in long run.
(d). Stable in mid to long run.

Question 15. Which is not a subject of macroeconomics?

(a). GDP.
(b). National income.
(c). Budget constraints of a firm.
(d). Inflation.

See answer

Paragraph

Question 16. J. M. Keynes was..

(a). An English economist.
(b). A Ramanian economist.
(c). An Austrian economist.
(d). A Croatian economist.

Question 17. Keynes advocated which one of the following theory or policy?

(a). Supply-side economics.
(b). Richard Thaler.
(c). Janet Yellen.
(d). Fiscal.

Question 18. Investment Function depends on:

(a). Size of firm.
(b). Price of good.
(c). Time.
(d). Marginal efficiency of capital.

Question 19. Which one of the following pairs is true?

(a). When the difference between MEC and Ri is lower… – Inducement is lower to invest.
(b). When the difference between MEC and Ri is lower… – Inducement is higher to invest
(c). When the difference between MEC and Ri is higher… – Inducement is lower to invest.
(d). When the difference between MEC and Ri is higher… – Inducement is higher to invest

Question 20. Who is the father of macroeconomics?

(a). Milton Friedman
(b). Adam Smith.
(c). J. M. Keynes.
(d). David Ricardo.

See answer

Economics Questions

Question 21. How would you determine the marginal efficiency of capital?

(a). By prospective Yield.
(b). By supply price of capital assets.
(c). Both a and b.
(d). Interest rate.

Question 22. Important issues in macroeconomics..

(a). Determination of general level of economy.
(b). Economic growth.
(c). International trade.
(d). All of the above.

Question 23. Limitation of macroeconomics..

(a). It doesn’t focus on its internal composition.
(b). All aggregate variables are necessarily important. 
(c). Rise in national income may be due to the increase in the incomes of middle class families of the nation.
(d). All of the above.

Question 24. The two major components of macroeconomics are..?

(a). Products and income.
(b). Income and employment.
(c). Employment and unemployment.
(d). Society and income.

Question 25. How to determine the level of income and employment..
(a). Aggregate demand.
(b). Aggregate production.
(c). Product value.
(d). Market value.

See answer

Question 26. The AS – DS model explains..

(a). Price level.
(b). Output.
(c). Both a and b.
(d). Aggregate demand and supply.

Question 27. In AD – AS model, the aggregate supply..

(a). Increases in long term.
(b). Increases in short term.
(c). Decreases in short term.
(d). None of the above.

Question 28. Phillips curve is a..

(a). Single equation economic model.
(b). Double equation economic model.
(c). Multi equation economic model.
(d). Any of the above.

Question 29. What happens when AS curve is horizontal? which means the

(a). Price level goes upside.
(b). Price level is constant.
(c). Price level goes downside.
(d). None of the above.

Question 30. The real money supply has..
(a). Negative effect on aggregate demand.
(b). No effect on aggregate demand.
(c). Positive effect on aggregate demand.
(d). All of the above.

See answer

Agri. Economic Quiz

Question 31. The tax has..

(a). Negative effect on AD.
(b). No effect on AD.
(c). Positive effect on AD.
(d). All of the above.

Question 32. What happens when there is an increase in real balances?

(a). Increase in equilibrium spending.
(b). Increase in equilibrium income.
(c). Both a and b.
(d). None of the above.

Question 33. The aggregate supply curve describes..

(a). It is the quantity of input which a firms plans to supply for each given price level.
(b). It is the quantity of output which a firm plans to supply for each given price level.
(c). Both a and b.
(d). None of the above.

Question 34. A classical aggregate supply curve includes..

(a). Short run aggregate supply curve.
(b). Horizontal long run aggregate supply curve.
(c). Constant aggregate supply curve.
(d). All of the above.

Question 35. If the curve of aggregate demand is downward, then.. means that more output is demanded at lower price levels

(a). There is more output at lower price levels.
(b). There is loe output at lower price levels.
(c). There is constant output at lower price levels.
(d). None of the above.

See answer

Mock Test

Question 36. The IS – LM model shows.. which combination of interest rates and output will ensure equilibrium in both the goods and money markets

(a). Which combination of interest rates ensure equilibrium on goods.
(b). Which combination of output will ensure equilibrium on money.
(c). None of the above.
(d). Both a and b.

Question 37. The IS curve comprises of..

(a). Income.
(b). Interest rate.
(c). Both a and b.
(d). None of the above.

Question 38. The IS curve is..

(a). Downward slopping.
(b). Upward slopping.
(c). Linear slopping.
(d). All of the above.

Question 39. LM curve is..

(a). Downward slopping.
(b). Upward slopping.
(c). Linear slopping.
(d). All of the above.

Question 40. In case of LM curve..

(a). Output had negative relationship in the money market.
(b). Interest rate has negative relationship in the money market.
(c). Both a and b.
(d). Opposite of the explanations a and b.

See answer

CET Questions

Question 41. Which is not a consideration of macroeconomic theory..  

(a). Phenomena of output.
(b). Unemployment.
(c). Inflation.
(d). Labour wedges.

Question 42. The macroeconomic output is commonly measured by..

(a). GDP.
(b). National income.
(c). Both a and b.
(d). None of the above.

Question 43. A declining economy may leads to.. .

(a). Deflation.
(b). Inflation.
(c). Both a and b but at different times.
(d). None of the above.

Question 44. Generally, …. is used to implement macroeconomic policy

(a). Fiscal policy.
(b). Monetary policy.
(c). Both a and b.
(d). None of the above.

Question 45. What is the role of fiscal policy?

(a). It stabilize the economy.
(b). It stabilize the problem of unemployment.
(c). Both a and b.
(d). None of the above.

See answer

Question 46. What is the role of monetary policy?

(a). It stabilize the money.
(b). It stabilize the problem of unemployment.
(c). Same as fiscal policy.
(d). None of the above.

Question 47. Who implements monetary policy in India?

(a). Gramin bank.
(b). State Bank of INDIA.
(c). NABARAD.
(d). Central Bank of India.

Question 48. Fiscal policy is the use of …. revenue and expenditure?

(a). Government’s.
(b). Private organisations.
(c). Public-private firms.
(d). All of the above.

Question 49. Taxes and debts are the tools of..

(a). Incomes policy.
(b). Monetary policy.
(c). Supply-side economics.
(d). Fiscal policy.

Question 50. The consumer price index is the measure of..

(a). Investment cost.
(b). Living cost.
(c). Expenses cost.
(d). All of the above.

See answer

External Links:

J. M. Keynes

Fiscal policy

Demand and Supply


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