The government can curb excessive aggregate demand(inflation)by_________________?

Related Mcqs:

1. A demand-side theory that focuses on the role of money to finance aggregate demand is termed__________?

   A. monetarism
   B. Reaganism
   C. the gold standard
   D. cash and carry

2. Investment is a unstable element of aggregate demand because it depends heavily on ?

   A. Government policy
   B. Expectations
   C. National income
   D. Historic trends

3. Aggregate demand is defined as_________________?

   A. one person’s demand for goods and services
   B. the lack of demand for goods and services
   C. the total demand in a society or on a world level for goods and services
   D. none of the above

4. Assume there is no government or foreign setor, If the MPC is 75 a Rs20 million decrease in planned investment will cause aggregate output to decrease by ?

   A. Rs80 million
   B. Rs20 million
   C. Rs 15 million
   D. Rs26.67 million

5. In the equation C = a + bY, which describes the aggregate consumption function ‘b’ stands for ?

   A. The marginal propensity to consume.
   B. The amount of income when consumption is zero
   C. The average consumption level
   D. The amount of consumption when income is zero

6. According to the quantity theory of money an increase in the money supply is most likely to lead to inflation if ?

   A. The velocity of circulation decrease
   B. The number of transaction decrease
   C. There is deflation
   D. The velocity of circulation and the number of transactions is constant

7. Inflation results when_________________?

   A. demand exceeds supply
   B. supply exceed demand
   C. there is control of purchasing power
   D. consumers have no purchasing power

8. In a developing nation people start to obtain good jobs Then inflation cuts their income the people begin to feel_________________?

   A. relative deprivation
   B. a failure of rising expectations
   C. euphoria
   D. depression

9. Most animal behavior is determined by_________________?

   A. symbolic interaction
   B. a system of symbols
   C. biology and instinct
   D. animal culture

10. The view that nationalism would wither away was held by_________________?

    A. classical liberals
    B. Marxists
    C. stoic philosophers like Marcus Aurelius
    D. all of the above