MCQs of Economics – Roots of Modern Macroeconomics

Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are:

The economists who emphasised wage flexibility as a solution for unemployment were:

According to the classical economists the economy:

According to classical models, the level of employment is determined primarily by:

Keynesian economics became popular because it was able to explain:

According of Keynes, the level of employment is determined by:

The government increase government spending to try to reduce unemployment This is an example of:

The nation that the government can establish the macroeconomic is known as:

Rapid increase in the price level during periods of recession of high unemployment are known as:

The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the:

The rational-expectation hypothesis suggests that the forecasts that people make concerning future inflation rates.

People are said to have rational expectations if they:

The persistence of a phenomenon such as unemployment, even then its causes have been removed is called:

The quantity theory of money implies that a given percentage change in the money supply will cause:

If the demand for money depends on the interest rate the velocity of circulation is:

It is difficult to determine if the velocity of money is constant over time because:

New classical theories were an attempt to explain:

The question regarding the new classical macroeconomics is hoe realistic is the assumption:

A group of modern economists who believe that markets clear very rapidly and that expanding the money supply will always increase prices rather than employment are the:

A group of modern economists who believe that institutional factors and confidence strongly influence business behaviour and that expanding demand will usually increase output rather than prices are the: