Macro-Economic Analysis-Output Price Determination (NTA-NET (Based on NTA-UGC) Economics (Paper-II)): Questions 1 - 3 of 14

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Question number: 1

» Macro-Economic Analysis » Output Price Determination

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Appeared in Year: 2014

MCQ▾

Question

Assume a model of income determination of the following type:

Where C = Consumption expenditure; Y = income; Yd = disposable income; T = taxes; T0 = Tan, when Y = 0; t1 = marginal tax rate; I = investment expenditure; G = Government expenditure; and bar ‘–’ as the variable indicates that these autonomous variables. Then the tax multiplier with respect to T0 is: (June)

Choices

Choice (4) Response

a.

b.

c.

d.

Question number: 2

» Macro-Economic Analysis » Output Price Determination

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Appeared in Year: 2014

MCQ▾

Question

Which of the following components of aggregate demand is self-terminating and self-financing? (June)

Choices

Choice (4) Response

a.

Government expenditure

b.

Investment expenditure

c.

Durable consumption expenditure

d.

Non-durable consumption expenditure

Question number: 3

» Macro-Economic Analysis » Output Price Determination

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Appeared in Year: 2013

MCQ▾

Question

Which of the following statements are true?

  1. Increased government spending affects aggregate spending more quickly than does an increase in money supply.
  2. An increase in aggregate demand has no effect upon real output when aggregate supply is vertical.
  3. An increase in government spending always crowds out an equal amount of private sector interest sensitive spending.
  4. Increased government spending affects aggregate supply less quickly than does an increase in money supply. (December)

Choices

Choice (4) Response

a.

1 & 2

b.

3 & 4

c.

1 & 3

d.

1 & 4

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