Question # 1

The equilibrium level of income of the open economic model is.

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200

400

300

500

The Root Mean square Error for the actual sales and sales forecast for 1985 and 1986 is.

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20.2

19.9

14.7

17.2

A Rs.10 increase in autonomous investment spending shifts is.

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Rightward by Rs. 10

Leftwards by Rs. 10

Rightward by Ke (Rs.10)

Leftward y Ke (Rs.10)

Economic planning by enteral government agencies is primarily associated with

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command economies

Market economies

Laissez faire economies

Market faire economies

The equation for the IS curve is.

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Y = 55 - 50 i

Y = 175 - 75 i

Y = 300 - 100 i

Y = 275 - 25 i

When the marginal propensity to consume is 0.75 the multiplier has a value of.

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4

5

3

2

What adjusts to restore general equilibrium after a shock to the economy.

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The LM curve

The IS curve

The FE line

The labor supply curve

The long run Phillips curve is

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Vertical

Horizontal

Upward sloping

Downward sloping

A mathematical expression relating the amount of output produced to quantities of capital and labor utilized is the

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Real interest rate

Production function

Productivity relation

Marginal product

The ratio of the change in the equilibrium level of income to a change in some automats increase in spending is the

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Elasticity coefficient

Multiplier

Automatic stabilizer

Marginal propensity of the autonomous variable

The risk free rate of interest would not be affected by.

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Changes in real output

Change in the money supply

Term to maturity

None of the above

A firm's total labor cost when six workers are employed is Rs.580 When seven workers are employed the total labor cost is Rs.700 the Rs. 120 change in total labor cost represents.

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Marginal physical product

Marginal resources cost

Marginal cost

Marginal revenue

Which of the following is not a category of consumption spending in the national income accounts.

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Consumer durables

Non durable goods

Services

Housing Purchases

When planned saving is greater than planned investment.

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Output should increase

Output should decrease

Output should not change

All of the above

Marginal utility is equal to average utility at that time when average utility is.

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Increasing

Maximum

Falling

Minimum

When aggregate economic activity increasing the economy is said to be in.

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An expansion

A contraction

A peak

A turning point

The estimated regression coefficient for good Y indicates

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Goods X and Y are independent goods

Good Y is relatively elastic

Good Y is a luxury good

Goods X and Y are complementary goods

The hypothesis would the tested with

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A two tailed test

A one tailed test with the rejection region in the left tail

a one tailed test with the rejection region on the right tail

The normal distiribution

In the product market of the circular flow model.

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Firms buy finished products from households.

Consumers buy factors of production from firms

Firms Sell factors of production to the government

Consumers buy finished products from firms

Which of the following macro economic variables is procyclical and coincident with the business cycle.

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Residential investment

Nominal interest rates

Industrial production

Unempolyment

Suppose nominal GNP is Rs.500 in year 1, the base year If the GNP deflator doubles by year 6 while real output has increased 40% nominal output in year 6 equals.

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Rs.2000

Rs.1400

Rs.1000

Rs.750

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