ECO 403 Macroeconomics | Current Solved Quiz 1 # 2021

ECO 403 Macroeconomics | Current Solved Quiz 1 # 2021

In the IS-LM _______ in govemment purchases shifts __________ curve to the right.

1. An increase ; IS
2. A decrease ; IS
3. An increase ; LM
4. A decrease ; LM

Which of the following is an example of LM shock?

1. More ATM machine
2. Consumer confidence
3. Business expectation
4. Stock market boom

Which of the following is an example of adverse supply shock?

1. Flood
2. Good weather
3. Decrease in price of labor
4. Decrease in price of capital

People base their expectation on all available information including information about current & prospective future policies is knowns as

1. Expectations
2. Adaptive expectation
3. Rational expectation
4. Negative expectation

The deviation of the _________ from the natural rate is known as cyclical unemployment.

1. Population
2. Working rate
3. Rate of labor force
4. Actual rate of unemployment

The LM curve is __________

1. Vertical
2. Horizontal
3. Negatively sloped
4. Positively sloped

Due to decrease in money supply aggregated demand curve will.

1. Shift towards right
2. Shift towards left
3. Remain the same
4. Become vertical

Due to positive demand shock aggregate demand curve will

1. Shift towards right
2. Shift towards left
3. Remain the same
4. Become vertical

The aggregate demand curve shows the relationship between the price level and the:

1. Income
2. Investment
3. Quantity of output supplied
4. Quantity of output demanded

Which one of the following is NOT the example of adverse supply shock?

1. Heavy rain
2. Earthquakes
3. Flood
4. Discovery of reserves

Inflation resulting from _________ is known as cost push inflation.

1. Negative investment shocks
2. Positive shocks
3. Demand shocks
4. Supply shocks

The policy action aimed to reduce the severity of _______ economic fluctuation is known as

1. Long run Monday policy
2. Short run fiscal policy
3. Long run trade policy
4. Short run stabilization policy

An expansionary monetary policy shift _________ to the ________

1. LM curve , right
2. LM curve ,left
3. IS curve ,right
4. IS curve ,left

People base their expectations on all available information include information about current & prospective future post

1. Expectations
2. Adaptive expectations
3. Rational expectations
4. Negative expectations

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