All India Management Association (AIMA) 2007 M.B.A Marketing Management Business Economics – II - Question Paper
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(b) Money supply
(c) Unemployment
(d) Investment
(e) Production. ( one mark)
24. Which of the subsequent is/are the core objectives of macroeconomic policy?
I. High level of output.
II. Full employment.
III. Price stability.
(a) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (I) and (II) above
(e) All (I), (II) and (III) above. ( one mark)
25. A country’s ___________ is a systematic record of all economic transactions ranging from that country and the rest of the world.
(a) Government annual budget
(b) Balance of trade
(c) Balance of payments
(d) Current account balance
(e) Capital account balance. ( one mark)
26. Which of the subsequent affects aggregate demand indirectly?
(a) Investment
(b) Net exports
(c) Government spending
(d) Taxes
(e) Consumption. ( one mark)
27. Which of the subsequent ensure full employment and full capacity output in the classical model?
(a) Flexibility in prices and wages
(b) Flexibility in prices and interest rate
(c) Flexibility in prices and investment
(d) Flexibility in prices and export
(e) Flexibility in prices and money supply. ( one mark)
28. If the reserve ratio increases, the value of money multiplier will
(a) Increase
(b) reduce
(c) 1st increase then reduce
(d) Remain constant
(e) Become zero. ( one mark)
29. According to the Keynesian model,
(a) Aggregate supply varies positively with exchange rate
(b) Aggregate supply curve is upward sloping
(c) Involuntary unemployment cannot exist
(d) Nominal and real wages are perfectly flexible
(e) Aggregate supply curve is vertical. ( one mark)
30. The sum of the balances in the merchandise, services, investment income, and unilateral transfers is called
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