MCQ Economics Class 12 Chapter 4 Determination of Income & Employment

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Macroeconomics

MCQ’s For All Chapters – Macroeconomics Class 12th

1. What is the slope of the consumption function?

Question 1 of 20

2. How is the investment function represented graphically when investment is autonomous?

Question 2 of 20

3. How is the aggregate demand function obtained graphically?

Question 3 of 20

4. The aggregate demand function is parallel to which function?

Question 4 of 20

5. What does the 45° line represent in the fixed-price model?

Question 5 of 20

6. What are the coordinates of every point on the 45° line?

Question 6 of 20

7. What determines equilibrium in the final goods market?

Question 7 of 20

8. What is unintended inventory accumulation?

Question 8 of 20

9. What is positive inventory investment?

Question 9 of 20

10. What happens to investment when interest rates are higher?

Question 10 of 20

11. What happens when autonomous investment increases?

Question 11 of 20

12. In the example with MPC = 0.8, what is the equilibrium income when autonomous expenditure is 50?

Question 12 of 20

13. What is the multiplier formula?

Question 13 of 20

14. What happens to the multiplier when MPC increases?

Question 14 of 20

15. What is the investment multiplier?

Question 15 of 20

16. What is the Paradox of Thrift?

Question 16 of 20

17. In the given example, what happens to MPC when MPS increases?

Question 17 of 20

18. What is meant by full employment level of income?

Question 18 of 20

19. What is the situation called when equilibrium output is below the full employment level because demand is insufficient?

Question 19 of 20

20. What is the effective demand principle?

Question 20 of 20


 

 

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