How is termed the economic theories or Maynard Keynes especially those which advocate government monetary and fiscal and stimulate business activity ?

Related Mcqs:

1. What is called the sequence of economic activity which is typically characterized by recession, fiscal recovery, growth and fiscal decline ?

   A. Economic Cycle
   B. Business Cycle
   C. Complete Cycle
   D. Cycle Business

2. Keynesian economics is an economic theory of British economist John Maynard. What this theory states ?

   A. A free market is necessary for economic growth and stability
   B. Regulation is necessary for economic growth and stability
   C. Active government intervention is necessary to ensure economic growth and stability
   D. Government intervention is not necessary to ensure economic growth and stability

3. Macroeconomic theory that emphasized the theories of Keynes and de-emphasized the classical theory developed as the result of the failure of ?

   A. economic theory to explain the simultaneous increases in inflation and unemployment during the 1970s
   B. The classical model to explain the prolonged existence of high unemployment during the Great Depression
   C. fine tuning during the 1960s
   D. the economy to grow at a rapid rate during the 1950s

4. Goals are achieved through ____ such a monetary fiscal, exchange rate tariff tax subsidy, business incentive foreign investment and foreign aid?

   A. indicative plan
   B. central bank policies
   C. central planning
   D. instrument variables

5. Mention the name for economic theory that the support of business that allows them to flourish will eventually benefit middle- and lower-income people in the form of increased economic activity and reduced unemployment?

   A. End benefit
   B. Trickle down
   C. Free market
   D. Capitalism

6. Fiscal policy is weak under floating exchanges rates as fiscal expansion ?

   A. crowds out imports
   B. crowds out public consumption
   C. crowds out exports
   D. reduces the budget deficit

7. Time lags which often erode effectiveness of monetary and fiscal policy measures represent ?

   A. delays in the response of the economy is stabilization policy
   B. the foreign response to price changes
   C. the change in exports and imports prices
   D. the change in exchange rates

8. According of Keynes, the level of employment is determined by ?

   A. the behaviour of trade unions.
   B. the quantity of money
   C. price and wages
   D. the level of aggregate demand for goods and services

9. Keynes suggested that decisions to consume and save were based on ?

   A. previous decisions
   B. absolute income
   C. relative income
   D. permanent income

10. Keynes liquidity preference theory of the interest rate suggests that the interest rate is determined by ?

    A. aggregate supply and aggregate demand
    B. the supply and demand for loanable funds
    C. the supply and demand for money
    D. the supply and demand for labor