Institute of Chartered Financial Analysts of India (ICFAI) University 2007 Certification Finance Economics (CFA520): - Question Paper
Monday, 17 June 2013 11:00Web
Page 11 of 24
as previous governments used to do so. The economist is an advocate of
(1 mark)
(a) Classical economics
(b) Rational expectations
(c) Keynesian economics
(d) Supply-side economics
(e) Monetarism.
< ans
>
60. Unemployment that outcomes from the normal workings of the labor market is a combination of
(1 mark)
(a) Frictional and structural unemployment
(b) Cyclical and structural unemployment
(c) Frictional and cyclical unemployment
(d) Frictional and disguised unemployment
(e) Higher volume demanded and lower volume supplied in the labor market.
< ans
>
61. Which of the subsequent would you suggest to counter a recession?
(1 mark)
(a) reduce in government expenditure
(b) reduce in transfer payment
(c) reduce in the discount rate
(d) reduce in the money supply
(e) Increase in the tax rate.
< ans
>
62. Which of the subsequent is not a major determinant of economic growth?
(a) Tastes and preferences of consumers
(b) Technological advancement
< ans
>
(1 mark)
(c) Natural resources
(d) Physical capital
(e) Human resources.
63. Inflation accompanied by a slowing of economic activity is
(1 mark)
(a) Known as deflation
(b) A outcome of a stagnant aggregate supply
(c) A outcome of fiscal stimulus
(d) Known as stagflation
(e) Known as a recession.
< ans
>
64. The Phillips curve indicates the short run trade off ranging from
(1 mark)
(a) Inflation and unemployment
(b) Unemployment and output
(c) Inflation and the nominal interest rate
(d) The nominal interest rate and investment
(e) Inflation and output.
< ans
>
65. Economic growth is stated to have occurred when there is an increase in
(1 mark)
(a) Interest rate
(b) Aggregate demand
(c) The rate of inflation
(d) Productive capacity
(e) Wage rate.
< ans
>
66. Which of the subsequent policy measures is considered as fiscal policy measures?
| Earning: Approval pending. |
