Question # 1

Which of the following will be TRUE if real income rose and the interest rate fell following an increase in government purchases?

IS curve must be vertical

LM curve must be vertical

Central Bank must have increased the money supply at the same time

Central Bank must have decreased the money supply at the same time

The economy gets maximum prosperity during:

Recession

Recovery

Boom

Depression

Ushr implies on:

Agricultural product

Industrial product

Agricultural & industrial product

None of these

Income elasticity show the relationship between:

Income and demand

Income and consumption

Income and price

Income and saving

Reward the labour is:

Interest

Wages

Profit

Rent

The price elasticity of demand measures the responsiveness of quantity demanded to:

Quantity demanded

Quantity supplied

Price

Output

NAT II Management Science Economy MCQs With Answers